Nigeria’s Communications Commission (NCC) and the Central Bank (CBN) have approved a new End User Billing (EUB) model for USSD services. The decision means USSD charges will be deducted directly from the airtime balance, ending years of financial disputes between telecom operators and commercial banks.
For Nigeria’s telecom and digital finance ecosystem, it is a long-awaited resolution to a conflict that has disrupted services and stalled industry progress for nearly half a decade.
“The EUB model is an important change in how customers are charged for transactions. It is being introduced to improve consumer quality of experience and to put customers in better control of their spending,” the NCC noted in a statement.
Previously, many Nigerians using USSD codes for banking activities, such as checking account balances, transferring funds, or buying airtime, were charged without notice through deductions from their bank accounts. In contrast, when the same USSD channel was used for telecom services, the cost was deducted from users’ airtime with immediate confirmation.
This split billing model not only confused consumers but created a rift between Mobile Network Operators (MNOs) and banks. Telcos bore the infrastructure and operational costs of USSD delivery, while banks collected and often delayed payments, leading to billions of naira in unsettled debts and strained relations.
The EUB model simplifies this system. Under the new approach, all USSD session costs—including those for banking—will be deducted directly from the customer’s airtime balance, just like a regular voice call or SMS. Users will now see, control, and approve charges upfront, promoting transparency and financial awareness.
What this means for users
For consumers, the biggest win is billing clarity and control. Users will now receive real-time confirmation of charges and can opt in or opt out of using USSD banking services altogether. This protects consumers from unauthorized deductions and aligns USSD billing with other mobile services, removing the mystery and mistrust that previously plagued the system.
Importantly, the cost of a USSD session remains capped at ₦6.98 for 120 seconds—cheaper than the old model, which charged ₦1.63 every 20 seconds, totaling nearly ₦10 for the same duration. This reduction offers better value for users while minimising pressure to rush through transactions.
Perhaps the most transformative aspect of EUB is its resolution of the long-standing financial dispute between telcos and banks. For years, telecom operators complained that banks were slow to remit funds for USSD services, creating a bottleneck that led to service interruptions and strained public trust. At one point, unpaid debts reached billions of naira, prompting threats of USSD service suspension by major telcos.
With EUB, that friction is gone. MNOs now receive payment directly at the point of service. This real-time revenue model eliminates payment delays, reduces administrative overhead, and allows telcos to plan more confidently for infrastructure investments. It also restores a level of financial autonomy for telecom providers, enabling them to innovate and expand service offerings without banking bottlenecks.
Regulatory oversight and consumer protection
To ensure a smooth rollout of the End User Billing (EUB) model, the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have put in place a series of strict regulatory safeguards designed to protect consumers and promote transparency.
One of the key provisions is the prohibition of double billing. Under the new model, banks are not allowed to charge users for USSD sessions—only Mobile Network Operators (MNOs) are authorised to apply charges. This rule eliminates confusion over who is billing the user and prevents overlapping charges.
Another important measure is the requirement for end-of-session notifications. Telcos must send users immediate alerts after each USSD session, clearly stating the cost incurred. This step ensures that subscribers are fully aware of what they are being charged and can verify it in real time, just as they would with voice or SMS services.
The regulators have also mandated clear and consistent communication. Both banks and telcos are expected to inform customers in advance about service availability, fee structures, and any planned downtimes that may affect USSD access. Customers who experience double billing or other service-related issues can reach out to the CBN and NCC via complaint channels: CBN at +234-70-0225-5226 or via email at [email protected], while the NCC can be contacted through its toll-free line at 622 or via email at [email protected].
Banks are currently working with MNOs and Value-Added Service (VAS) providers to complete technical integration, end-to-end testing, and formal agreements. Customers will be notified by their banks once the EUB model goes live for their accounts.
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