USSD Wahala Reloaded: Are Telcos Quietly Dipping into Your Airtime? by Elvis Eromosele - ITREALMS

Commentary@ITREALMS ... making leadership SENSE with digital news!


In Nigeria, one phrase captures the endless stream of troubles that trail daily life, "Wahala no dey finish." This timeless street slang now finds fresh relevance in the realm of mobile banking, especially with the storm brewing between telcos, banks, and the supposed "saviour" in between, the Nigerian Communications Commission (NCC). 

After years of battles over who should bear the cost of USSD transactions, the NCC made a grand intervention: going forward, customers would pay USSD fees directly from their airtime, not their bank accounts.

ALTON commences End-User Billing for USSD services: Effective today, June 18 - ITREALMS

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The Association of Licensed Telecom Operators of Nigeria (ALTON) has commenced full migration to the End-User Billing (EUB) model for Unstructured Supplementary Service Data (USSD) services, effective Wednesday, June 18, 2025, reports ITREALMS.

This pivotal shift, ITREALMS gathered is in accordance with the Nigerian Communications Commission (NCC) Determination on USSD Pricing and Services, aimed at fostering a more sustainable, transparent, and customer-centric digital financial ecosystem.

Is this end of USSD Banking in Nigeria? by Elvis Eromosele - ITREALMS

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For years, USSD (Unstructured Supplementary Service Data) banking in Nigeria has been a lifeline for millions of Nigerians. It was simple, fast, and accessible even on the most basic mobile phones. From transferring money to paying bills, and checking balances to buying airtime, USSD provided seamless access to banking without the need for internet access.

But now, a terse, polite message from banks may have sounded the death knell of the service. In what feels like a final move in a long-standing tussle between telecom service providers and banks, the new directive from the Nigerian Communications Commission (NCC) mandates that going forward, USSD banking charges will be deducted directly from customers’ airtime, not their bank accounts.

USSD code debt: Zenith, Fidelity, UBA, Sterling, 5 others may be disconnected - ITREALMS

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A total of nine banks may be disconnected before end of this month due to unpaid debt arising from deployment of Unstructured Supplementary Service Data (USSD) Codes with Zenith, Fidelity, United Bank for Africa (UBA) and Sterling Bank leading the list, reports ITREALMS.

Other financial institutions that may be affected include First City Monument Bank, Jaiz Bank Plc, Polaris Bank Limited, Unity Bank Plc, and Wema Bank Plc.

NCC approves mobile operators' disconnection of debtor banks over USSD - ITREALMS

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The reasons for the latest approval by the nation’s telecoms regulator, the Nigerian Communications Commission (NCC) to telecommunications companies, especially the Mobile Network Operators (MNOs) to disconnect some nine indebted financial institutions have emerged, reports ITREALMS.

NCC had on Wednesday, January 15, 2025 issued a public notice of the approval to telcos to withdraw Unstructured Supplementary Service Data (USSD) Codes assigned by the Commission to financial institutions over unreconciled over N200 billion indebtedness.

N120 Billion USSD Controversy: Time for High-Level Intervention by Elvis Eromosele

Commentary@ITREALMS ... making leadership SENSE with digital news!

One of my earliest memories of a money fight was one between an alajo (thrift collector) and a borrower. The debtor was screaming at the top of his voice, 'na money I borrow I no kill person.' Then he added a clincher, 'after all Nigeria self dey owe.' 

It took the intervention of the Baba Oloja at that time to resolve the issue. The Baba Oloja's intervention saved the day, prevented a fracas and led to the resolution.

N120bn USSD debt: ALTON approves disconnection of banks - ITREALMS

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The Association of Licensed Telecommunications Operators of Nigeria (ALTON) is spoiling for war over some N120n billion debt arising from the use of Unstructured Supplementary Service Data (USSD) by Nigerian banks, reports ITREALMS.

USSD, ITREALMS gathered also referred to as 'quick codes' or 'feature codes,' is a communications protocol used by GSM cellular telephones to communicate with the mobile network operator's computers.

Beauty of harmonised USSD code in Nigeria - ITREALMS

Features, TelecomsClinic@ITREALMS ... making leadership SENSE with digital news!

The harmonisation of the Unstructured Supplementary Service Data (USSD) notch for the telecoms sector is timeous, handy, and memorizable, writes ITREALMS’ REMMY NWEKE, with applause for the Industry Working Group (IWG) and all other parties involved in signing off on this initiative as Nigerians await the 5G bouquet.

Prelude:

In a suburb of Lagos known as Bolade in the Oshodi-Isolo Local Government Area of the commercial city, a single mother identified as Iya Hannah Odewale operates an airtime kiosk. She deals in all manners of airtime; from phone airtime also called ‘credit’ in local parlance to providing top-ups for decoders, among others in the neighbourhood.

She also has a neighbour who works at a customer service centre of one of the Mobile Network Operators (MNOs) known as Onyi Kachiukwu. One thing these neigbhours have in common is that they reside in same building at the neighbourhood and with the coming of the introduction of the Unstructured Supplementary Service Data (USSD) by mobile operators to conduct some services including checking of balances on airtime or data, Iya Hannah is sure Onyi has the precise code answer and from there, he became the help-line for Iya Hannah; giving her the needed and relevant codes so she can offer and fulfill customers request.

Was Pantami for telecom consumers?

Noteworthy is that towards the last quarter of 2019, especially on resumption of office, the current Minister of Communications and Digital Economy, Isa Ali Pantami took it upon himself to kick against and even later formally commenced jettisoning plans by MNOs to introduce new charges for USSD, more so upon realisation that USSD is largely now being used by bank customers for financial transactions.

N42bn indebtedness: Telcos to shut down USSD options - ITREALMS

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Bearing all unresolved over N42 billion indebtedness by the Nigerian banks, under the Financial Service Providers (FSPs), the Mobile Network Operators (MNOs) have concluded plans to shutdown the Unstructured Supplementary Service Data (USSD) options with effect from Monday, March 15, 2021, reports ITREALMS.

USSD is a Global System for Mobile Communications (GSM) protocol that is used to send text messages and make digital financial transactions similar to the Short Messaging Service (SMS), thereby using codes made up of the characters that are available on a mobile phone.

Banks vs MNOs: ALTON ‘this is our story on USSD access fees’ - ITREALMS

ForTheRecords@ITREALMS:

The attention of the Association of Licensed Telecommunications Operators of Nigeria (ALTON) has been drawn to the public outcry against the charges for the Unstructured Supplementary Service Data (USSD) access to banking services and the subsequent suspension of the implementation of the charges by the Honourable Minister of Communications.

Our members are deeply concerned about the feelings of customers who have been instrumental in the growth of the telecommunications sector. Given our members’ commitment to the ethos of accountability and transparency in engagement with consumers, we wish to provide clarity on the issues surrounding the USSD access and the associated charges.

· The USSD channel has evolved over time from a telco exclusive channel used for only telco services such as balance inquiry and recharges, to a channel being utilized for the deployment of financial, insurance, agricultural and government services, etc. The USSD channel is delivered using the Standalone Dedicated Control Channel (SDCCH) which is also used for call set-up, SMS set-up, and delivery.

· Similar to the other telco services such as SMS, voice and data, network resources are utilized in the provisions of USSD services and as such there are significant costs associated with deploying and maintaining the service.

· The Banks however identifying the convenience of delivering services to its customers over the USSD channel applied to the Nigerian Communications Commission for USSD codes to deliver these services. USSD Shortcodes were thereafter issued to the Banks and as is expected, they became fully responsible for the charges associated with delivering services to their customer through these shortcodes.

· Recently, the USSD channel has become a preferred service channel for the financial sector because of the cost efficiencies derived from the adoption of the channel. Today, USSD codes such as *737#, *906# have become leading brands because Banks have intensified the promotion of this channel to mostly the banked base towards the overall improvement of efficiencies with less focus on other service channels such as brick and mortar centers.

· With the increase in USSD traffic driven by financial services which currently constitutes approximately 90% of the entire USSD traffic, our members have continued to incur additional costs to provision additional SDCCH channels to mitigate against the negative impact on the quality of service. It is therefore factually incorrect when allusions are made that USSD costs incurred by our members are sunk costs which are not recoverable

· In order to accelerate the adoption of financial services on USSD, the banks partnered with our members to zero-rate the USSD access to end-users, while the banks bore the cost for the provision of service. Based on this arrangement, the banks took on the responsibility of billing customers and paid our members for use of the USSD infrastructure from the service fees deducted from the customer’s bank account. These service fees charged by the banks, were however far in excess of the costs remitted to our members by the Banks for providing the USSD platform and have since remained so.

· Following the issuance of the USSD Pricing Determination by the Nigerian Communications Commission which resulted in a price review of USSD service by our members, the banks stated that they would no longer pay for USSD service delivered to their customers and requested our members to charge customers directly for use of the USSD channel. This billing methodology where the Banks customer is directly charged USSD access fees by our members irrespective of the service charges that the bank may subsequently apply to the customers’ bank account is called “End-User Billing” which the banks specifically demanded that all our members implement. The banks, however, provided no assurances to our members that such service fees charged to customers’ bank accounts for access to bank services through the USSD channel will be discontinued post implementation of end-user billing by our members. The removal of these service fees by the banks would have meant that if bank customers were charged only the USSD costs communicated by our members per USSD session, bank customers will be paying far less than what they are currently being charged by the banks which in some instances are as high as N50. Additionally the banks and telco’s will be applauded for collaborating towards the financial inclusion objectives of the Federal Government.

· Our members were however concerned that the banks were unlikely to discontinue the USSD service fees charged by the banks when customers utilize the USSD channel thereby resulting in double and over billing, whereby our members charge consumers for the USSD access from their airtime and the Banks still proceed to charge the same consumers a service charge from their bank accounts. In the interest of the consumers, our members challenged the implementation of end-user billing until a formal request for its implementation was received from the Body of Bankers Chief Executive Officers and several banks specifically demanding that end-user billing be implemented.

· In view of the opposition to the implementation of end-user billing by customers, our members, as responsible and responsive corporate citizens are committed to safeguarding consumer interests, and in this regard, we are willing to explore mutually beneficial solutions which ensure that costs associated with the provision of USSD services as determined by the Nigerian Communications Commission are fully recovered by our members and customers are not billed twice for the same service and by different institutions which is what end-user billing advocated by the banks will entail.

· In this vein, we call on the Nigerian Communications Commission and the Central Bank of Nigeria to, as a matter of priority, convene a meeting of the financial and telecoms industry stakeholders to address this issue for the benefit of the consumers and other stakeholders.

For the Association of Licensed Telecommunications Operators of Nigeria (ALTON)

*Contributed jointly by Engr. Gbenga Adebayo and Gbolahan Awonuga, the ALTON Chairman and Head, Operations respectively.

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ALTON exonerates telcos, says banks endorsed end-user billing - ITREALMS

ITREALMS:

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has exonerated its members from the current crisis of double billing of customers over the suspended charges on the use of Unstructured Supplementary Service Data (USSD), reports ITREALMS.

ALTON also expressed concern over the public outcry that graced the planned commencement of the charges for the Unstructured Supplementary Service Data (USSD) access to banking services and the subsequent suspension of the implementation by the Honourable Minister of Communications, Dr. Ibrahim Isa Pantami.

Reacting to the situation, ALTON chairman, Engr. Gbenga Adebayo and Head of Operations, Gbolahan Awonuga, told ITREALMS that operators followed due process. 

ITREALMS recalls that the latest USSD billing was to commence on Monday, October 21, 2019 but was truncated by public condemnations and alleged fraudulent deductions.

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In its response on this billing methodology, ALTON said, which involves banks customer being directly charged USSD access fees by telcos irrespective of the service charges that the bank may subsequently apply to the customers’ bank account.

This, ALTON described as ‘End-User Billing’ which the banks specifically “demanded that all our members implement.”

Also, ALTON said, the banks, however, provided no assurances that such service fees charged to customers’ bank accounts for access to bank services through the USSD channel will be discontinued post implementation of end-user billing by ALTON members.

“The removal of these service fees by the banks would have meant that if bank customers were charged only the USSD costs communicated by our members per USSD session, bank customers will be paying far less than what they are currently being charged by the banks which in some instances are as high as N50,” ALTON argued.

Stressing that banks and telco’s ought to be applauded for collaborating effectively towards the financial inclusion objectives of the Federal Government, rather than condemnation.

ALSO READ: Minister directs NCC to address costly, illegal de...

ALTON further beckoned on the Nigerian Communications Commission and the Central Bank of Nigeria to, as a matter of priority, convene a meeting of the financial and telecoms industry stakeholders to address this issue for the benefit of the consumers and other stakeholders.

Chuks Egbuna/Editor

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