Thirteen commercial banks in Nigeria have paid off their debts for Unstructured Supplementary Service Data (USSD) services owed to mobile network operators, making way for a new billing method where USSD charges will now come directly from customers’ airtime.
This update came during an online session hosted by MTN Nigeria, where the Association of Licensed Telecommunications Operators of Nigeria (ALTON) shared that out of the 17 banks involved in the issue, 13 have fully cleared their payments.
The remaining three banks have paid over 95 percent of their debts and are expected to complete payment soon. Heritage Bank was not part of the list due to its insolvency.
The total debt, which stood at ₦180 billion in January, arose from long-standing charges for USSD services, which banks previously paid to telecom operators.
The resolution now paves the way for a new system where the cost of using USSD banking codes will no longer come from customers’ bank accounts but from their airtime balance.
Under this new method, every time a user dials a USSD code like *737#, a message will first inform them that a ₦6.98 charge will be deducted from their airtime.
Once the customer agrees, the telecom operator will reach out to a USSD aggregator to confirm if the bank is ready to proceed. If so, the transaction continues, and the airtime is charged.
This process ensures that users are not charged for failed transactions due to telecom issues.
If the failure comes from the bank’s side, such as system downtime or low account balance, the deduction may still occur but will be properly explained to the user.
The industry has also introduced a more transparent process with clearer messages to customers, making it easier to understand the reason for failed transactions and preventing confusion about deductions.
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