Nigerian banks have commenced the deduction of USSD transaction charges directly from customers’ mobile airtime balances, following a new directive from the Nigerian Communications Commission (NCC).
The implementation, which took effect Tuesday, June 3, 2025, marks the enforcement of the End-User Billing (EUB) model, proposed by the NCC several years ago to resolve lingering issues around USSD service charges.
In a message to customers, United Bank for Africa (UBA) stated:
“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. Going forward, these charges will be deducted directly from your mobile airtime balance.”
UBA explained that under the new model, each USSD session will cost N6.98 per 120 seconds, billed by the customer’s mobile network provider. Customers will receive a prompt at the beginning of each session to approve the deduction. Without confirmation, the airtime will not be charged.
The bank also advised that those who prefer not to use USSD banking under the new billing system can opt for other channels such as mobile apps, internet banking, or ATMs.
First City Monument Bank (FCMB) issued a similar notification, confirming that customers will now pay for USSD sessions through their airtime and must approve each transaction.
“You will be asked to approve the charge before it’s deducted from your airtime. If you prefer, you can use other banking channels like ATMs, mobile apps, or Internet banking,” FCMB stated.
This policy shift comes as part of efforts to resolve the protracted dispute between banks and telecom operators over unpaid USSD fees. The standoff, which escalated to over N250 billion in debt, saw telecom companies threatening to withdraw USSD services.
In January 2025, the NCC ordered telecom operators to disconnect USSD codes assigned to nine banks over their failure to settle debts. By February 28, MTN Nigeria confirmed it had received N32 billion out of N72 billion owed by banks as partial settlement.
The new billing method is expected to clarify who bears the cost of USSD services and ensure service continuity while protecting the interests of both banks and telecom providers.
