Nigerian banks have commenced the deduction of charges for USSD transactions directly from customers’ mobile airtime, following a directive from the Nigerian Communications Commission (NCC).
According to a notice sent by the United Bank for Africa (UBA) on Tuesday, the new billing model became effective on June 3, 2025, in line with the NCC’s End-User Billing (EUB) framework which has been in development for years.
“In line with the directive of the Nigerian Communications Commission (NCC), please be informed that effective June 3, 2025, charges for USSD banking services will no longer be deducted from your bank account,” the UBA stated.
The bank explained that USSD transaction charges will now be deducted directly from a customer’s airtime balance, with each session attracting a fee of ₦6.98 per 120 seconds, billed by the customer’s mobile network provider.
“You will receive a consent prompt at the start of each session, and airtime will only be deducted upon your confirmation,” the notice clarified. Customers who are not comfortable with this change are advised to opt for alternative banking channels.
Similarly, First City Monument Bank (FCMB) echoed the change in a message to its customers, stating:
“Each USSD session will cost ₦6.98 per 120 seconds, charged by your mobile network. You will be asked to approve the charge before it’s deducted from your airtime.”
Customers are encouraged to explore other digital platforms such as mobile apps, ATMs, and internet banking for convenience.
This development marks a significant step in resolving a prolonged debt dispute between banks and telecom operators over ₦250 billion in unpaid USSD fees. The disagreement reached a head in early 2025 when telecom operators threatened to withdraw USSD services due to the mounting debts.
In January, the NCC ordered the disconnection of USSD codes assigned to nine banks over non-settlement of debts. By late February, MTN Nigeria confirmed receiving ₦32 billion out of the ₦72 billion owed by banks.
