Tensions have flared between Nigerian telecom operators and banks over the implementation of new charges for USSD banking services. As of June 3, major banks — including UBA — informed customers that “charges for USSD banking services will no longer be deducted from your bank account,” and instead, fees would be “billed by the mobile network operator” directly from airtime at ₦6.98 per 20 seconds.
But telecom operators, under the umbrella of the Association of Licensed Telecom Operators of Nigeria (ALTON), have slammed the move, accusing banks of “gross misinformation” and breaching a regulatory agreement.
ALTON Chairman, Engr. Gbenga Adebayo, clarified: “The change was not a unilateral NCC directive but a joint regulatory agreement between the NCC and the Central Bank of Nigeria, witnessed by both telcos and banks.” He further stressed that the agreement only allows migration to end-user billing if banks clear all outstanding debts owed to telcos by June 2.
“As we speak, some of the banks have cleared their debts, but the majority are yet to do so,” Adebayo stated. “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.”
Frustrated by what it describes as bad faith, ALTON is threatening action. “If that is the way the banks want to treat the agreement, we may withdraw support for their USSD services. It is not a must-have. They can do without it. But they should clear the debts as agreed,” Adebayo warned.
The conflict, rooted in a debt crisis estimated at ₦250 billion, threatens to disrupt USSD-based banking for millions of Nigerians. The NCC has previously sanctioned banks over non-payment, with MTN Nigeria reporting that it recovered ₦32 billion out of the ₦72 billion owed for USSD services.
