Telecom Companies And Banks in Nigeria Will Begin Deducting USSD Service Charges From Airtime

Very soon, you might notice that when you use USSD codes like *737# or *894# to buy airtime, data, or do bank transactions, the money for the service will come straight from your phone’s airtime instead of your bank account. Yes, the telecom companies and banks are getting ready to start deducting USSD charges from airtime.

Right now, when you use USSD to do things like transfer money or check your bank balance, the bank usually charges you separately. But with this new change, the cost will be taken directly from your airtime balance before the transaction happens. This means your airtime will reduce a little every time you use USSD services.

This change is called “end-user billing.” It means that instead of the banks paying telecom companies behind the scenes and then charging you, you will pay directly through your phone credit. Telecom companies and banks to deduct USSD charges from airtime is something they have been talking about for a long time.

Telecom and banks to deduct USSD charges from airtime

The reason for this change is because there has been a big problem with money owed between banks and telecom companies. Over the years, banks have owed telecom companies a lot of money for USSD services, about 160 billion naira by late 2024. This debt caused a lot of problems and even led to some banks being cut off from USSD services earlier this year because they didn’t pay what they owed.

The telecom companies say this new way will help fix the USSD debt crisis. Gbenga Adebayo, the Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), said they are working hard to make sure the change happens smoothly and won’t cause problems for customers. He also said this is something banks have wanted for a while because it stops the debt from growing.

This idea isn’t new. It has been discussed since 2019, but banks and telecom companies had disagreements about how much to charge and how to share the money. Banks were worried that the cost might go up too much. That disagreement delayed the change for years.

Right now, people pay about 7 naira for each USSD transaction. This fee was introduced in 2021 to help cover costs. But even with that, the debt problem didn’t go away. Now, with the new plan, the fee will still be charged, but it will come directly from your airtime.

The Central Bank of Nigeria and the Nigerian Communications Commission have also stepped in to help solve the problem. They told banks and telecom companies to agree on how to pay back the money owed by July 2, 2025. Banks must pay at least 60% of the old debts to settle the issue.

So, what does this mean for you? Soon, when you dial a USSD code to buy airtime, transfer money, or check your balance, you will see your airtime reduced by the USSD charge before the transaction happens. It might feel a little different at first, but this change is meant to keep the USSD service running smoothly for everyone.

In short, telecom companies and banks’ USSD charges will now come from your airtime, making the whole system clearer and helping fix a big money problem between banks and telecom companies. This change will help make sure you can keep using USSD services without interruptions in the future.

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