Banks Shift USSD Costs to Airtime, Sparking Backlash from Telcos and Consumers
A major billing controversy has erupted between Nigerian banks and telecom providers after several financial institutions began charging users directly from their mobile airtime for USSD services. The change, which took effect on Monday, June 3, has drawn widespread criticism from telecom operators and consumer rights groups who argue that the move unfairly places the cost burden on subscribers.
Notably, banks like FCMB and Stanbic IBTC have informed customers that USSD fees — previously deducted from their bank accounts — will now be withdrawn directly from their airtime. Under the new system known as End-User Billing (EUB), each session is charged at ₦6.98 per 120 seconds.
Consumer Groups and Telcos Push Back
The National Association of Telecoms Subscribers (NATCOMS) has condemned the move, calling it “exploitative” and accusing banks of attempting to shift their financial obligations onto everyday Nigerians.
“Subscribers did not enter into any agreement with banks to pay these charges. That contract was between the banks and telecom operators,” said Chief Deolu Ogunbanjo, president of NATCOMS. He further noted that banks are acting in bad faith by abandoning their prior responsibilities just to protect profits.
Ogunbanjo also criticized the Nigerian Communications Commission (NCC) for its silence and demanded a clear response. “If the NCC allows this to go on, we will challenge it. We will not let this pass quietly,” he said.
Telcos Threaten Disconnection
Telecom operators, under the umbrella of the Association of Licensed Telecom Operators of Nigeria (ALTON), have echoed NATCOMS’ concerns. According to ALTON Chairman, Engr. Gbenga Adebayo, banks are violating prior agreements by implementing end-user billing without first clearing outstanding debts or agreeing on a formal billing protocol.
“We’re still finalizing a Service Level Agreement (SLA) to prevent double billing and ensure billing transparency. Some banks jumped ahead without following this process,” Adebayo explained. He warned that telcos may begin disconnecting any bank that bypasses the agreed terms, subject to regulatory approval.
Public Reaction and Growing Confusion
For ordinary Nigerians, the shift has brought confusion and frustration. Many users report unclear deductions and repeated charges for a single USSD transaction.
“I was charged multiple times just to check my balance. There was no total breakdown, just airtime disappearing in bits,” said Funmi Olaniyan, a Lagos-based trader. “This is sneaky and stressful.”
With rising inflation and mounting costs already weighing heavily on citizens, consumer advocates argue the move may deter people from using digital banking tools — potentially widening the digital gap.
What’s Next?
As the controversy grows, pressure is mounting on the NCC to take a clear stance. Both telcos and consumer groups are urging the Commission to intervene and halt what they describe as an unjust cost transfer to the public.
The dispute highlights broader tensions in Nigeria’s digital finance landscape, where responsibility, regulation, and user protection remain contested issues.
This story was first reported by LEADERSHIP.
