Telcos Threaten to Withdraw USSD Services Amid Banks’ Misinformation and Unpaid Debts
Nigeria’s major telecom operators, including MTN, Airtel, Globacom, and 9Mobile, have issued a warning to banks over alleged misinformation to customers about charges on USSD banking transactions. The banks recently informed customers that, following a directive from the Nigerian Communications Commission (NCC), transaction fees for USSD services would no longer be deducted from bank accounts but from users’ mobile airtime instead. This notification caused confusion and frustration among subscribers.
USSD, the service used for mobile bank transfers via short codes, has been at the center of a regulatory agreement involving the NCC, the Central Bank of Nigeria (CBN), telecom operators, and banks. The agreement allows banks to switch to an end-user billing system—charging airtime for USSD sessions—only after settling outstanding debts to the telecom companies by June 2, 2025. This condition ensures customers do not face double charges, being billed both by banks and telecom operators for the same service.
However, the Association of Licensed Telecom Operators of Nigeria (ALTON), representing the telecom companies, accused the banks of spreading false information and unilaterally changing the agreed terms. ALTON chairman Gbenga Adebayo emphasized that the banks had not fully paid their debts for USSD transactions, making the shift to airtime billing premature and unauthorized.
Adebayo warned that if the banks continued on this path without settling their dues and without proper coordination with the telcos, telecom companies might withdraw their network support for banks’ USSD services altogether. He stressed that while the service is beneficial, it is not indispensable if agreements are not honored.
This dispute highlights ongoing tensions between the banking and telecom sectors in Nigeria over USSD billing models and customer charges. The outcome could affect millions of Nigerians who rely on USSD for everyday banking transactions, making swift resolution crucial for financial and digital service continuity.
Source: Vanguard