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Millions of Nigerians use the USSD to access banking services daily, but telcos say they are being owed by banks.
They have threatened to suspend USSD services over the debt owed by banks.
The Association of Licensed Telecommunication Operators of Nigeria (ALTON) said it will disconnect the banks from the service by March 15.
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In a statement signed by its chairman, Gbenga Adebayo, and head of operations, Gbolahan Awonuga, the group on Friday explained that the withdrawal became necessary after its members and banks failed to reach an agreement on a payment structure that will exclude phone users.
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It said after the issuance of the USSD pricing, determined by the Nigerian Communications Commission, the banks decided that they would no longer pay for USSD service delivered to their customers and requesting the telcos to charge customers directly.
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