Commercial banks in Nigeria have settled 95 per cent of the ₦180bn debt owed to telecommunications operators for Unstructured Supplementary Service Data (USSD) services, paving the way for the implementation of end-user billing, according to the Association of Licensed Telecommunications Operators of Nigeria (ALTON).
Chairman of ALTON, Engr. Gbenga Adebayo, disclosed this on Thursday during a virtual media briefing on the progress of the USSD billing transition.
He confirmed that only three banks are yet to complete their obligations, with all three currently on installment repayment plans and due to make their final payments shortly.
“The settlement of the USSD debt was a key precondition for transitioning to end-user billing,” Adebayo noted. “With the bulk of the debt now cleared, we are moving forward with the new billing model.”
Under the new system, charges for USSD transactions will be deducted directly from customers’ mobile airtime rather than their bank accounts. Adebayo explained that one major bank has already been successfully migrated to the new platform, with positive trial outcomes, and others are in the process of onboarding.
However, he clarified that migration to the airtime-based billing system is optional. Banks that prefer to maintain the corporate billing model may continue doing so, provided they have fully settled their outstanding debts to telecom operators.
“For those staying on the corporate billing system, it is essential that they ensure immediate settlement of charges and avoid accruing new debts,” he emphasized.
The ALTON chairman assured consumers that telecommunications operators are committed to ensuring smooth and reliable transactions. He also highlighted that in cases of transaction failures, the source of the failure would determine billing.
“If the failure is from the telecom network, the customer won’t be charged. But if it is successful from the operator’s side and fails on the bank’s end, then billing will apply,” he said. He cautioned users to report any double billing to their banks, noting that deductions should not occur both from airtime and bank accounts.
Also speaking during the session, Chief Enterprise Business Officer of MTN Nigeria, Lynda Saint-Nwafor, stated that customers will not experience a price hike under the new arrangement. The USSD charge remains at ₦6.98 per session (120 seconds), but will now be deducted from airtime.
She added that transparency remains a top priority, and in compliance with directives from the Nigerian Communications Commission (NCC), operators are required to provide monthly performance metrics and standardized error messages to enhance user understanding and system accountability.
The resolution of the long-standing USSD debt issue and the phased rollout of the end-user billing system mark a significant milestone in the telecoms-banking sector collaboration, aimed at ensuring sustainability and fairness in service delivery.
