In a major breakthrough for Nigeria’s digital financial ecosystem, 13 commercial banks have fully settled their Unstructured Supplementary Service Data (USSD) debts owed to Mobile Network Operators (MNOs). This development paves the way for a new airtime-based billing model, ensuring transparency and sustainability in USSD banking transactions.
Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), announced the update during the ‘ASK the Exec’ virtual session hosted by MTN Nigeria on Thursday.
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According to Adebayo, of the 17 banks with outstanding USSD debts, 13 have completely cleared their obligations, while the remaining three have paid over 95% and are nearing full settlement. Heritage Bank was excluded due to its insolvency.
“As of January, the total USSD debt from banks stood at ₦180 billion. With most banks now settled, we can transition to a more efficient and transparent billing system,” Adebayo said.
New Billing Model: End-User Airtime Charges
With debts nearly resolved, a new end-user billing structure will be implemented. Going forward, customers will have ₦6.98 per USSD transaction deducted directly from their airtime balance, rather than from their bank accounts.
MTN’s Chief Enterprise Business Officer, Lynda Saint-Nwafor, explained:
“The shift to end-user billing gives users more transparency and control. Charges will be deducted from airtime, with clear consent messages before any transaction.”
How the New System Works
- Consent Notification: Users dialing a bank’s USSD code will receive a pop-up message seeking approval for the ₦6.98 airtime deduction.
- Aggregator Check: Once consent is given, the MNO checks the bank’s system availability via a USSD aggregator.
- Transaction & Billing: If the bank is reachable, the customer proceeds with the transaction, and ₦6.98 is deducted from their airtime.
To avoid unnecessary charges:
Users are encouraged to use direct USSD strings (e.g., 73710000#) for purchasing airtime or data—these are zero-rated and come at no cost.
Double deductions (from both bank and airtime) should be reported immediately to the user’s bank for reversal.
Banks Can Still Choose
Banks with pending balances can opt into the new system once they clear their debts, or they can remain on the old corporate billing model if they prefer—but only after honoring their past obligations.
Enhanced Transparency & Protection for Users
Adebayo noted that the shift brings greater accountability, as failed transactions caused by telcos will not be billed. If the fault lies with the bank (e.g., downtime, insufficient balance), users will still be charged, but a clear explanation will be provided.
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- “This new system ensures users know why a transaction fails and who is responsible. Monthly performance stats will also be shared with regulators for monitoring,” Adebayo added.
He also addressed concerns about USSD access in rural or unbanked communities, emphasizing that the ₦6.98 cost is far lower than transportation to physical banks, making USSD an affordable and essential channel for financial inclusion.
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