June 12, 2025

The recently introduced End User Billing (EUB) policy into the Nigerian banking sector will in no small way address the ongoing conflict between banks and telecom operators regarding USSD service fees.

The transition is expected to improve the overall USSD banking experience across the country, with the goal of enhancing transparency, empowering customers with greater control, and ensuring the long-term sustainability of the service.

Billing Shift to Airtime: Previously, USSD banking charges were deducted from bank accounts without clear upfront notice.

With EUB, charges of N6.98 per 120 second session will be billed directly by Mobile Network Operators (MNOs) from users’ airtime, similar to how voice or SMS calls are charged. Users receive a prompt to consent before airtime is deducted, ensuring clarity and control over spending.

Consumer Control and Transparency: Customers know the cost before starting a USSD session and receive immediate notification of charges after each transaction. This eliminates surprise deductions from bank accounts and aligns USSD banking charges with other telecom services.

Opt-In/Opt-Out Flexibility: Users can choose to continue using USSD banking under the new airtime billing or switch to alternative digital channels like mobile apps or internet banking if they prefer.

Regulatory Safeguards: The Central Bank of Nigeria (CBN) and NCC have prohibited double billing, mandating that only MNOs charge for USSD sessions, not banks. Both regulators oversee compliance and provide consumer complaint channels to address any issues.

Service Continuity and Notifications: Banks and telecom operators are required to notify customers of any USSD service downtime or disruptions, ensuring users are informed and supported.

Impact on the Banking and Telecom Ecosystem
The EUB model resolves the multi-year conflict over USSD fees, where telecom operators bore infrastructure costs but faced delayed or unsettled payments from banks. Now, MNOs receive real-time payments directly, enabling better service investment and innovation. Banks exit the fee collection role for USSD, focusing on service delivery while customers enjoy clearer billing.

What Consumers Should Do
Monitor airtime balances as USSD charges will now come from airtime.

Respond to consent prompts before USSD sessions to avoid unexpected deductions.

Report any double billing or service issues to the CBN or NCC via their official contact lines.

Consider alternative digital banking platforms if USSD airtime billing is inconvenient.