‘Most Banks yet to clear USSD Debt–’ Telecom Operators

• Threaten Debtor banks migration to end user billing will lead to services withdrawal

The telecom operators in Nigeria, have threatened to withdraw their operations and network support to banks, most of which are yet to settle their Unstructured Supplementary Services Data (USSD) debt, yet migrating to end user billing systems on users of their USSD services.

The network providers include, Airtel Africa, MTN Nigeria, Globacom and 9Mobile, they have threatened to withdraw network support for banks’ Unstructured Supplementary Services Data, USSD, following what they described as gross misinformation of subscribers on the mode of deduction for transaction fees.

Under group of telco operators, the Association of Licensed Telecom Operators of Nigeria, (ALTON) emphasized that recent agreement banks reached with the telcos was that if the banks finally cleared all USSD debts owed to the telcos by June 2, 2025, they are free to migrate to the end-user billing method, so long as the model of migration is transparent and agreed upon by the telcos.

“The reason for that clause was because the telcos insisted that the process of migration is such that will not allow a customer to be billed twice; in other words, that a subscriber would not have his airtime deducted and also have his or her money deducted for same services from his or her bank account.

“As we speak, some of the banks have cleared their debts, but the majority are yet to do so. So, even if all the modalities of migrating to end-user billing have been perfectly carried out, the implementation cannot even begin because the banks are yet to clear the USSD debt owed to the telcos.

Meanwhile, USSD, commonly known as ‘bank transfers’, is done through short codes on mobile phones.

It will be recalled that on Tuesday, the banks issued a notice to their customers that the Nigerian Communications Commission (NCC) has directed them to stop deducting charges for USSD transactions directly from customers’ accounts, and that telecoms will now deduct charges from users’ mobile airtime. The notice from the banks read in part: “In line with the directive of the Nigerian Communications Commission (NCC), please be informed that effective June 3, 2025, charges for USSD banking services will no longer be deducted from your bank account.

“Going forward, these charges will be deducted directly from your mobile airtime balance in accordance with the NCC’s End-User Billing (EUB) model.

“Under this new billing structure, each USSD session will attract a charge of N6.98 per 120 seconds, which will be billed by your mobile network operator.

“You will receive a consent prompt at the start of each session, and airtime will only be deducted upon your confirmation and availability of the bank to fulfil this service.

“If you do not wish to continue using USSD banking under this new model, you may choose to discontinue use of the USSD channel.”

However, in a swift reaction, the telcos under their umbrella body, the Association of Licensed Telecom Operators of Nigeria, ALTON said the banks’ notice is a gross misinformation deliberately hatched to suit their selfish interests.

Hence, they threatened to with- draw network support to the banks’ USSD services. According to the chairman of ALTON Engr Gbenga Adebayo, “I don’t understand why the banks are twisting agreements and distorting information just to favour their selfish interests.

In the first place, the information wasn’t a directive from the NCC but a joint regulatory agreement between the NCC and the Central Bank of Nigeria, (CBN) witnessed by the telcos and the banks.

The agreement was that if the banks finally cleared all USSD debts owed to the telcos by June 2, 2025, they are free to migrate to the end-user billing method, so long as the model of migration is transparent and agreed upon by the telcos.