Telecom operators under the Association of Licensed Telecommunications Operators of Nigeria have refuted claims by Deposit Money Banks that the Nigerian Communications Commission instructed them (DMBs) to deduct Unstructured Supplementary Service Data transaction fees directly from customers’ airtime balances instead of their bank accounts.
This comes amid growing concerns from customers after several banks, including United Bank for Africa, First City Monument Bank, and Fidelity Bank, began issuing notices indicating that from June 3, 2025, USSD banking charges would no longer be deducted from bank accounts but directly from airtime.
ALTON, however, insisted that no such directive came from the telecom regulator. The banks have not fulfilled the conditions precedent to migration. NCC does not regulate banks and has no oversight over them.
“If anyone is to direct the banks to migrate, it is the Central Bank of Nigeria, not the NCC,” ALTON Chairman, Gbenga Adebayo, said.
The telecom industry is technically ready for end-user billing, but most lenders have failed to meet critical regulatory and operational conditions, including clearing historical debts and providing systems for error reporting and compensation mechanisms.
“We are surprised that the banks took what was most convenient for them to whip up public sentiment by saying NCC directed them. NCC never said anything like that to the banks,” the telecom executive said.
“If the banks claim they have met the conditions for migration, the answer is no. Not all of them have fulfilled these conditions, and not all are ready with the required protocols.”
According to the joint circular issued by the CBN and NCC on December 20, 2024, and signed by acting Director of the CBN’s Payments System Management Department, Oladimeji Taiwo, and Head of Legal and Regulatory Services at the NCC, Chizua Whyte, the migration to airtime billing can only take place after banks settle outstanding debts to mobile network operators.
The transition to end-user billing will be activated only for banks and telcos that comply with the payment terms, the memo said.
The payment plan is divided into three phases: banks must pay 60 per cent of old bills by January 2, 2025; then settle all outstanding pre-existing bills by July 2, 2025; and finally pay 85 per cent of new bills by December 31, 2025.
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