New billing model raises stakes for Nigeria’s igaming players
Nigeria’s booming betting sector faces fresh hurdles and changing player behaviour as telecoms shift USSD costs to users.
Nigeria.- Nigeria’s mobile first economy is undergoing a seismic shift that is already sending ripples through the igaming and sports betting industries. The country has officially implemented End User Billing (EUB) for Unstructured Supplementary Service Data (USSD) services, transferring the cost of accessing these essential telecom features directly to mobile users.
For millions of Nigerian bettors, especially those stuck in internet slow lanes, this tiny fee might just be the nudge that makes them think twice before placing their next bet.
Previously, banks bore the financial burden of USSD session charges used for mobile banking, wallet top ups and bet placements. But with EUB in place, telecom providers now deduct N6.98 (about $0.005) every 120 seconds from users’ airtime when they access USSD codes.
Still, MTN is quick to wave away worries, insisting this change won’t make wallets any lighter.
“The customers were already paying for this. The only difference now is that rather than deduct it from your bank account, it will be deducted from your airtime,” said Chief Enterprise Business Officer at MTN Nigeria Lynda Saint Nwafor, according to Techeconomy.
Many platforms rely heavily on USSD for critical functions such as wallet funding, account verification and user engagement. However, with every USSD interaction now hitting the user’s airtime, casual players and those making micro transactions may become more cautious.
EUB in full swing as banks clear debt
The policy change follows the resolution of a long standing dispute between Nigerian banks and telecommunications companies over unpaid USSD service fees. A whopping N180 billion ($122m) was owed to telecommunications companies by banks. This week, 13 of Nigeria’s 16 commercial banks cleared N171 billion ($116m) of the debt, unlocking the path for full EUB implementation. “We have recovered about 95 percent of the outstanding debt,” said Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria.
“This massive repayment paved the way for the full rollout of end user billing.”
To ease the transition, telecom providers have standardised error messages across networks, helping users identify whether issues arise from banks, telcos or third-party services. There is a silver lining as direct USSD codes used for airtime and data purchases remain free of charge.
As Nigeria embraces EUB, the country’s digital economy stays on course. But now, for millions of mobile users and igaming enthusiasts, the cost of convenience will come straight out of their own airtime balance.
