The shift to End-User Billing (EUB) for USSD in Nigeria signals a turning point in digital finance. Telecoms secure direct revenues, banks lose billing control, and customers confront new realities. In this week’s Telecoms Clinic@ITREALMS, REMMY NWEKE, unpacks the winners, losers, and implications for financial inclusion.
The introduction of the End-User Billing (EUB) framework for Unstructured Supplementary Service Data (USSD) in Nigeria represents one of the most significant policy shifts in the country’s digital finance ecosystem.
Officially implemented on June 18, 2025, the new model changes how millions of Nigerians pay for mobile-based financial services and resolves a long-standing rift between banks and telecom operators.
From debt crisis to reform:
The road to EUB was paved by years of tension between Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs).
Mechanics of End-User Billing:
Under the EUB framework, customers are charged a flat rate of ₦6.98 per 120-second USSD session, with deductions made directly from their airtime balance.
Winners and losers:
The clear winners in this transition are the telecom operators. By taking direct control of fee collection, telcos secure a sustainable revenue stream and eliminate the bottleneck of bank remittances.
Transparent Future for Customers:
For customers, the biggest gain lies in transparency. Charges are no longer hidden within bank deductions but are presented upfront, with consent required before airtime is deducted.
Regulatory balance:
The collaboration between the CBN, NCC, and industry stakeholders in delivering the EUB model demonstrates a rare regulatory alignment.
Conclusion:
The migration to End-User Billing is more than a technical adjustment; it is a restructuring of power and incentives within Nigeria’s digital finance ecosystem.
Telecom operators emerge stronger, banks lose direct control, and customers gain clearer, more transparent billing practices.
What began as a bitter financial dispute has now given way to a more sustainable model, one that could strengthen USSD’s role in driving inclusive growth across the Nigerian economy.
From debt crisis to reform:
The road to EUB was paved by years of tension between Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs).
Since 2019, banks had been tasked with collecting USSD fees from customers and remitting them to telecom operators, who provided and maintained the infrastructure.
But disagreements over what constituted a chargeable session, coupled with delayed or incomplete remittances, led to an escalating debt burden. By December 2024, outstanding liabilities had swelled to over ₦250 billion.
Regulatory interventions followed:
Regulatory interventions followed:
In 2021, the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) introduced an interim flat fee of ₦6.98 per session, collected by banks on behalf of telcos. Yet compliance was inconsistent, and disputes persisted.
In December 2024, the CBN and NCC directed banks to settle at least 60% of outstanding debts by January 2, 2025, and the remainder by July 2025.
By mid-year, 13 out of 16 banks had cleared about ₦171 billion of the ₦180 billion they owed, creating the conditions for a clean transition to end-user billing.
Mechanics of End-User Billing:
Under the EUB framework, customers are charged a flat rate of ₦6.98 per 120-second USSD session, with deductions made directly from their airtime balance.
Crucially, the model requires users to give explicit consent before charges are applied, reinforcing transparency and customer control.
Billing applies only to successful sessions, and banks are expressly prohibited from deducting USSD charges from customer accounts once they migrate to the new system.
The model also incorporates customer-friendly features. For instance, subscribers with zero airtime balance can still purchase recharge directly from their bank accounts, provided sufficient funds are available, ensuring continued access to mobile transactions.
The model also incorporates customer-friendly features. For instance, subscribers with zero airtime balance can still purchase recharge directly from their bank accounts, provided sufficient funds are available, ensuring continued access to mobile transactions.
The clear winners in this transition are the telecom operators. By taking direct control of fee collection, telcos secure a sustainable revenue stream and eliminate the bottleneck of bank remittances.
This financial stability not only strengthens their cash flow but also creates the opportunity to reinvest in network infrastructure, with potential improvements in service delivery.
For banks, however, the story is less favorable. They have lost a profitable billing channel and the leverage that came with controlling USSD fee deductions.
For banks, however, the story is less favorable. They have lost a profitable billing channel and the leverage that came with controlling USSD fee deductions.
Their role is now confined to backend interoperability, compliance, and supporting customer access.
Without the revenue incentive, some banks may scale back their efforts to promote USSD banking, shifting focus instead to internet-driven platforms and mobile apps.
Transparent Future for Customers:
For customers, the biggest gain lies in transparency. Charges are no longer hidden within bank deductions but are presented upfront, with consent required before airtime is deducted.
This builds trust and strengthens USSD as a tool for expanding financial inclusion, especially for unbanked and underbanked Nigerians who rely heavily on feature phones.
Regulatory balance:
The collaboration between the CBN, NCC, and industry stakeholders in delivering the EUB model demonstrates a rare regulatory alignment.
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By resolving the debt overhang and giving telcos direct control of their revenues, regulators have stabilized a channel that is critical for Nigeria’s financial inclusion agenda.
The expectation is that this clarity will restore confidence, eliminate recurring disputes, and set the stage for more innovation in mobile-based financial services.
Conclusion:
The migration to End-User Billing is more than a technical adjustment; it is a restructuring of power and incentives within Nigeria’s digital finance ecosystem.
Telecom operators emerge stronger, banks lose direct control, and customers gain clearer, more transparent billing practices.
What began as a bitter financial dispute has now given way to a more sustainable model, one that could strengthen USSD’s role in driving inclusive growth across the Nigerian economy.
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