Abuja, Nigeria – The Nigerian Communications Commission (NCC) has issued a directive mandating that charges for USSD banking transactions be deducted directly from customers’ mobile airtime instead of their bank accounts. The policy took effect on Tuesday, June 3, 2025, as confirmed in a communication from United Bank for Africa (UBA) to its customers. This marks a shift to the End-User Billing model adopted by the NCC.
According to UBA’s statement:
“Charges for USSD banking services will no longer be deducted from your bank account… they will now be deducted from your airtime at ₦6.98 per 120 seconds.”
Users will receive a consent prompt before each session, and airtime will only be deducted upon confirmation and successful service access. Customers are free to opt out of USSD banking if they disagree with the new billing model.
Background and Implications
The change follows years of dispute between banks and telecom operators over USSD service debts, which by late 2024 had reportedly accumulated to ₦250 billion. The NCC and Central Bank of Nigeria (CBN) had jointly urged a resolution to the conflict after telcos threatened to suspend services over unpaid fees.
In early 2025, the NCC took enforcement steps, directing telcos to cut USSD access to nine banks and warning of potential service suspension. As of February, MTN Nigeria confirmed receiving ₦32 billion out of the ₦72 billion it was owed.
What It Means for Customers
- USSD now uses mobile airtime instead of bank account balances.
- ₦6.98 per 120 seconds will be charged, billed by the mobile operator.
- Consent is required before every session.
- Customers can switch to alternative banking platforms, such as mobile apps and internet banking.
This move is expected to eliminate future debt accumulation and clarify payment responsibility between banks and telcos, though it may also affect users with limited airtime or no access to alternative digital channels.
