Telcos Threaten USSD Service Disruption Over Banks’ “Misinformation and Unpaid Debts”
Nigeria’s major telecom operators MTN, Airtel, Globacom, and 9Mobile are poised to cut off Unstructured Supplementary Service Data (USSD) access to banks, following what they describe as a deliberate campaign of misinformation and the banks’ failure to settle longstanding debts.
The threat comes in response to notices issued by commercial banks to customers on June 3, 2025, claiming that the Nigerian Communications Commission (NCC) had directed a switch in billing for USSD services from customer bank accounts to mobile airtime balances. This move, according to the banks, would take effect immediately and would see subscribers charged ₦6.98 per 120 seconds of USSD use, deducted from their airtime by mobile network operators.
But telecom operators, under the umbrella of the Association of Licensed Telecom Operators of Nigeria (ALTON), say this narrative is misleading — and intentionally so.
Telcos Cry Foul Over “Twisted” Agreement
Speaking to Vanguard, ALTON Chairman Engr. Gbenga Adebayo dismissed the banks’ communication as a distortion of the truth and a breach of a regulatory agreement jointly endorsed by the NCC and the Central Bank of Nigeria (CBN), with both telcos and banks in attendance.
“This was never a unilateral directive by the NCC as the banks claimed. It was a joint decision, contingent on one major condition: the banks were required to clear all USSD debts owed to the telcos by June 2, 2025,” Adebayo said.
According to ALTON, while some banks have partially fulfilled their financial obligations, most have yet to comply thus invalidating the agreed-upon switch to end-user billing.
“The end-user billing model was meant to replace the bank account deduction system only after debts were settled and a transparent, non-duplicative billing system was confirmed,” Adebayo explained. “The banks agreed that no customer would be charged twice via airtime and bank deductions for the same service.”
Debt Overhang and Looming Service Cut
The telcos maintain that they are owed substantial sums by banks for years of USSD access, and the refusal to settle these debts now threatens service continuity.
“If this misinformation continues and the debts remain unpaid, we will not hesitate to withdraw network support for USSD services. It’s not a mandatory service for us the banks can choose to operate without it,” Adebayo declared.
He stressed that telecoms are businesses, not public utilities, and should not be expected to subsidize services for banking institutions already profiting from mobile transactions.
A Growing Tension
This development is the latest in a longstanding rift between Nigerian telcos and banks over the cost structure of USSD services a friction point that has led to several regulatory interventions over the past three years. At its core is the question of who pays for mobile financial services and whether the end user should bear the burden.
While customers brace for another possible disruption, stakeholders in the financial and telecommunications sectors are calling for clarity, transparency, and above all, honouring of agreements.
If the standoff persists, millions of Nigerians who rely on USSD for basic financial transactions, especially in rural areas with limited internet access, could be cut off another blow to financial inclusion in Africa’s largest economy.
Reference
Telcos Threaten USSD Service Disruption Over Banks’ “Misinformation and Unpaid Debts”