The Nigerian Communications Commission (NCC) has directed all commercial banks to stop deducting USSD charges from customers’ bank accounts, mandating that such fees be taken from users’ mobile airtime instead.
This directive took effect on Tuesday, June 3, 2025, as confirmed by the United Bank for Africa (UBA) in a notice to its customers.
“In line with the directive of the Nigerian Communications Commission, please be informed that effective June 3, 2025, charges for USSD banking services will no longer be deducted from your bank account,” UBA’s statement read. “Going forward, these charges will be deducted directly from your mobile airtime balance in accordance with the NCC’s End-User Billing model.”
According to the new arrangement, each USSD session will attract a ₦6.98 charge per 120 seconds. This fee will be collected by mobile network operators. Users will receive a consent prompt before each session, and airtime will only be deducted if the user agrees and the service is successfully completed by the bank.
Customers who are not comfortable with this billing method have the option to stop using USSD services and switch to other digital platforms such as mobile apps and internet banking.
This move is the latest step in the NCC’s effort to resolve the prolonged dispute between telecom operators and banks over unpaid USSD service debts, which have accumulated to over ₦250 billion.
In late 2024, the NCC and the Central Bank of Nigeria (CBN) instructed telcos and banks to settle the outstanding debt and agree on a transparent billing model going forward. Despite these efforts, the impasse persisted into 2025, prompting telcos to threaten a suspension of USSD support for defaulting banks.
On January 15, 2025, the NCC ordered telecom providers to disconnect USSD shortcodes assigned to nine banks that had yet to settle their debts. By February 28, MTN Nigeria reported receiving ₦32 billion out of the ₦72 billion owed, indicating that partial payments had been made.
Telecom operators have long complained about bearing the cost of USSD sessions without reimbursement from banks, leading to calls for a shift to a user-pay system. The implementation of the End-User Billing model is seen as a solution to ensure transparency and immediate compensation for telcos while preventing double billing of consumers.
The NCC believes this new system will protect consumers, eliminate debt disputes, and promote sustainable access to mobile financial services in the country.
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