The Nigerian Communications Commission (NCC) has issued a new directive mandating Deposit Money Banks to collect charges for unstructured supplementary service data (USSD) transactions directly from users’ mobile airtime rather than their bank accounts.
This development, which took effect on Tuesday, 3rd June 2025, was communicated to customers via an email from the United Bank for Africa (UBA), informing them of the shift in billing procedure.
The email stated: “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.
“Going forward, these charges will be deducted directly from your mobile airtime balance in accordance with the NCC’s End-User Billing model. Under this new billing structure, each USSD session will attract a charge of N6.98 per 120 seconds, which will be billed by your mobile network operator.
“You will receive a consent prompt at the start of each session, and airtime will only be deducted upon your confirmation and availability of the bank to fulfil this service. If you do not wish to continue using USSD banking under this new model, you may choose to discontinue use of the USSD channel.”
UBA also noted that customers could continue to access digital banking services and internet banking, highlighting that these remain unaffected by the new directive.
This directive comes amid efforts by the NCC to address a longstanding dispute between Mobile Network Operators (MNOs) and Deposit Money Banks over USSD fees—a conflict that has created friction in the banking and telecommunications sectors.
Back in December 2024, the Central Bank of Nigeria (CBN) and the NCC jointly ordered telcos and banks to settle the long-standing USSD debt crisis, estimated at around N250 billion.
Earlier this year, telcos threatened to withdraw USSD services, citing unpaid debts by banks. In January 2025, the NCC responded by threatening to suspend USSD services and naming the banks still in default. On 15th January 2025, the NCC directed mobile operators to deactivate USSD codes assigned to nine banks by 27th January due to outstanding debts.
By the end of February, MTN Nigeria confirmed it had received N32 billion out of N72 billion owed by banks, marking partial repayment. Despite these payments, telcos continued to voice concerns about the unresolved debts, while regulators and stakeholders worked to find sustainable solutions.
This latest move by the NCC aims to streamline the USSD payment process, ensuring that users pay charges directly through their airtime. It is also expected to reduce friction between banks and telcos, paving the way for smoother operations and better customer experiences.
