Say Goodbye to Free USSD Banking and Get ready to start paying from your airtime when using USSD services like *894#. Soon, instead of your bank covering the cost behind the scenes, you’ll be charged directly from your airtime balance.
What’s Changing?
Mobile banking users in Nigeria will soon see a change in how they pay for USSD banking services, with charges set to come directly from their airtime balances rather than bank accounts. According to The Guardian, banks and telecoms are finalizing a switch to end-user billing for USSD. That means each time you dial a USSD code, your airtime will take the hit, not your bank account.
This shift comes after years of disputes between banks and telcos over who should pay for USSD services. The current system, where telcos bill banks, has led to debts reportedly hitting ₦160 billion by late 2024.
Addressing the ₦160 Billion Debt Crisis
Telecoms say this new model could fix the long-standing debt crisis. Talks are already underway to ensure a smooth transition, according to The Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo. “This is what the banks have wanted for a while,” he said, adding that the goal is to stop further debts from piling up.
This isn’t new, though. The back-and-forth started in 2019, when telcos proposed charging ₦4.50 per 20 seconds. Banks pushed back, saying it would spike costs. Even after a ₦6.98 per session fee was introduced in 2021, the debt kept piling up. Some banks were even cut off from USSD access earlier this year for not paying up.
Regulatory Deadlines Set
Now, regulators have stepped in. The Central Bank of Nigeria and Nigerian Communications Commission have ordered both parties to agree on repayment terms, either in bulk or in installments, by July 2, 2025. For pre-API invoices, 60% must be paid as final settlement.
What this means for You
Next time you dial *894#, don’t be surprised if your airtime balance drops before your transaction goes through. It’s all part of an effort to sort out a messy money fight that’s dragged on for years.
