Telecom Operators to Start Charging Airtime for USSD Banking Services from June 18

Starting from June 18, 2025, mobile network operators in Nigeria will begin deducting airtime directly from users for USSD banking transactions. This development follows a decision to shift the cost of USSD services from banks to end users.

According to the Association of Licensed Telecom Operators of Nigeria (ALTON), customers will now be charged ₦6.98 for each USSD session. This fee will be deducted straight from their airtime balance, rather than being paid by the banks as was previously the case.

Why This Change Is Happening

Telecom providers have long argued that banks owe them large sums for USSD services, with some reports suggesting a debt of over ₦250 billion. Due to ongoing disputes between banks and telecoms over who should pay these charges, the decision was made to switch to direct billing for users.

In a statement, ALTON explained that the new billing model was approved by both the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN). The aim is to ensure smooth service delivery and eliminate the delays caused by unpaid debts between banks and telcos.

What This Means for Users

• Every USSD banking session will cost ₦6.98
• The amount will be deducted directly from your phone’s airtime
• You will receive a prompt to approve the transaction before charges apply
• No fee will be charged if you do not proceed with the session

ALTON also stated that the billing will only apply when a session is successfully completed, and users will always be notified before any deduction takes place.

Alternative Options

For users who prefer not to use airtime for banking, most banks offer mobile apps and internet banking platforms that remain free of charge. These alternatives are expected to see increased use, especially for customers who frequently make transfers or check their balances.