Nigeria’s Communications Fee (NCC) and the Central Financial institution (CBN) have authorized a brand new Finish Person Billing (EUB) mannequin for USSD providers. The choice means USSD fees will probably be deducted straight from the airtime steadiness, ending years of monetary disputes between telecom operators and business banks.
For Nigeria’s telecom and digital finance ecosystem, it’s a long-awaited decision to a battle that has disrupted providers and stalled trade progress for almost half a decade.
“The EUB mannequin is a vital change in how clients are charged for transactions. It’s being launched to enhance shopper high quality of expertise and to place clients in higher management of their spending,” the NCC famous in an announcement.
Beforehand, many Nigerians utilizing USSD codes for banking actions, reminiscent of checking account balances, transferring funds, or shopping for airtime, had been charged with out discover by deductions from their financial institution accounts. In distinction, when the identical USSD channel was used for telecom providers, the associated fee was deducted from customers’ airtime with rapid affirmation.
This break up billing mannequin not solely confused customers however created a rift between Cellular Community Operators (MNOs) and banks. Telcos bore the infrastructure and operational prices of USSD supply, whereas banks collected and infrequently delayed funds, resulting in billions of naira in unsettled money owed and strained relations.
The EUB mannequin simplifies this technique. Beneath the brand new strategy, all USSD session prices—together with these for banking—will probably be deducted straight from the shopper’s airtime steadiness, identical to an everyday voice name or SMS. Customers will now see, management, and approve fees upfront, selling transparency and monetary consciousness.
What this implies for customers
For customers, the largest win is billing readability and management. Customers will now obtain real-time affirmation of fees and might decide in or decide out of utilizing USSD banking providers altogether. This protects customers from unauthorized deductions and aligns USSD billing with different cell providers, eradicating the thriller and distrust that beforehand plagued the system.
Importantly, the price of a USSD session stays capped at ₦6.98 for 120 seconds—cheaper than the outdated mannequin, which charged ₦1.63 each 20 seconds, totaling almost ₦10 for a similar length. This discount presents higher worth for customers whereas minimising stress to hurry by transactions.
Maybe essentially the most transformative side of EUB is its decision of the long-standing monetary dispute between telcos and banks. For years, telecom operators complained that banks had been gradual to remit funds for USSD providers, making a bottleneck that led to service interruptions and strained public belief. At one level, unpaid money owed reached billions of naira, prompting threats of USSD service suspension by main telcos.
With EUB, that friction is gone. MNOs now obtain fee straight on the level of service. This real-time income mannequin eliminates fee delays, reduces administrative overhead, and permits telcos to plan extra confidently for infrastructure investments. It additionally restores a stage of monetary autonomy for telecom suppliers, enabling them to innovate and develop service choices with out banking bottlenecks.
Regulatory oversight and shopper safety
To make sure a easy rollout of the Finish Person Billing (EUB) mannequin, the Central Financial institution of Nigeria (CBN) and the Nigerian Communications Fee (NCC) have put in place a sequence of strict regulatory safeguards designed to guard customers and promote transparency.
One of many key provisions is the prohibition of double billing. Beneath the brand new mannequin, banks should not allowed to cost customers for USSD periods—solely Cellular Community Operators (MNOs) are authorised to use fees. This rule eliminates confusion over who’s billing the person and prevents overlapping fees.
One other necessary measure is the requirement for end-of-session notifications. Telcos should ship customers rapid alerts after every USSD session, clearly stating the associated fee incurred. This step ensures that subscribers are absolutely conscious of what they’re being charged and might confirm it in actual time, simply as they might with voice or SMS providers.
The regulators have additionally mandated clear and constant communication. Each banks and telcos are anticipated to tell clients prematurely about service availability, charge buildings, and any deliberate downtimes that will have an effect on USSD entry. Clients who expertise double billing or different service-related points can attain out to the CBN and NCC through criticism channels: CBN at +234-70-0225-5226 or through e-mail at shopper@ncc.gov.ng, whereas the NCC may be contacted by its toll-free line at 622 or through e-mail at ncc@ncc.gov.ng.
Banks are at the moment working with MNOs and Worth-Added Service (VAS) suppliers to finish technical integration, end-to-end testing, and formal agreements. Clients will probably be notified by their banks as soon as the EUB mannequin goes reside for his or her accounts.
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