Telcos Fight Back! MTN, Airtel, Glo Threaten USSD Blackout Over Bank ‘Lies

Nigeria’s major telecommunications providers—MTN, Airtel, Globacom, and 9Mobile—have threatened to suspend support for banks’ USSD services, following what they describe as misleading information being disseminated to customers regarding transaction charges.

The telecom operators, under the umbrella of the Association of Licensed Telecom Operators of Nigeria (ALTON), expressed frustration over what they termed as deliberate misinformation by banks to shift blame and avoid accountability.

USSD services, widely used for bank transfers via short mobile codes, have recently become the subject of renewed controversy. On Monday, several banks sent notifications to customers claiming that the Nigerian Communications Commission (NCC) had ordered a shift in how USSD charges are deducted—from bank accounts to users’ airtime.

According to these messages, effective June 3, 2025, customers would be billed ₦6.98 per 120 seconds directly from their airtime balance. Customers were also told they would receive a consent prompt before any charges are made.

However, ALTON has disputed this narrative, stating that the directive wasn’t solely from the NCC. Instead, they clarified it was the result of a joint regulatory agreement between the NCC and the Central Bank of Nigeria (CBN), with telecom operators and banks present.

ALTON Chairman, Engr. Gbenga Adebayo, said:

“It’s unfortunate that banks are distorting the facts for selfish reasons. The migration to end-user billing was agreed upon only if banks cleared all outstanding USSD debts by June 2, 2025, and that any new billing model would be transparent and mutually agreed upon.”

He further noted that while some banks have cleared their debts, many still owe telecom companies, making the implementation of the new model premature.

Adebayo warned:

“If the banks continue down this path, we may have no choice but to withdraw network support for USSD services. It’s not mandatory—we can do without it. But first, the banks must honour their agreement and settle their debts.”

This development signals growing tension between telcos and financial institutions, potentially disrupting access to mobile banking services if not resolved swiftly.