The Nigerian Communications Commission (NCC) has issued a new directive mandating Deposit Money Banks (DMBs) to begin deducting charges for USSD transactions directly from customers’ airtime instead of their bank accounts.
The move, which takes effect from June 3, 2025, is aimed at resolving the protracted dispute between banks and telecom operators over USSD service payments.
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In a message to its customers, the United Bank for Africa (UBA) explained that the charges would now be collected by mobile network providers. According to UBA, each USSD session will attract a fee of N6.98 for every 120 seconds. Customers will receive a prompt to give their consent before airtime is deducted, and deductions will only occur if the customer agrees and the bank is ready to provide the service.
The change comes after a long-standing conflict over unpaid USSD service fees, which have reportedly ballooned to over N250 billion. In December 2024, the Central Bank of Nigeria (CBN) and the NCC jointly ordered both banks and telecom firms to resolve the issue.
Following this, telcos had threatened to suspend USSD services over the mounting debt, prompting the NCC to consider publishing a list of defaulting banks and suspending the service entirely. In February, MTN Nigeria confirmed it had received N32 billion out of a N72 billion debt owed by banks, marking a partial resolution of the crisis.
The new billing model is expected to eliminate friction between the two industries by placing the cost burden directly on users. Customers unwilling to incur these charges are encouraged to explore alternative channels such as mobile banking apps and internet banking. They also have the option to stop using USSD services altogether.
Key points for users:
- New charges: N6.98 per 120 seconds per USSD session
- Consent required: Users must approve charges before airtime is deducted
- Alternative options: Mobile apps and online banking remain available
- Opt-out option: Customers can discontinue USSD use if they prefer not to pay via airtime
