NCC Directs Banks to Deduct USSD Fees Through Airtime
The Nigerian Communications Commission has directed Deposit Money Banks to start deducting charges for unstructured supplementary service data transactions directly from users’ mobile airtime.
According to an email from the United Bank for Africa to customers on Tuesday, the charges will no longer be deducted from customers’ accounts. UBA said the directive takes effect from Tuesday, June 3, 2025.
The statement read, “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 said customers can continue using other digital banking options and the internet banking platform for convenience. The latest directive may be another move by the commission to address the historical USSD payment conflict between Mobile Network Operators and commercial banks.
In December 2024, the Central Bank of Nigeria and the NCC directed mobile network operators and DMBs to resolve the long-standing N250bn USSD debt.
Following threats by telcos to withdraw services over the debt accumulated by banks, the NCC, in January, threatened to suspend the USSD service and publish a list of banks still owing telcos.
On January 15, the regulator directed telcos to disconnect the USSD codes assigned to nine banks by January 27 due to unpaid debts. On February 28, MTN Nigeria said it received N32bn, out of N72bn, from banks as part of payment for the USSD debt.
The telcos had repeatedly raised concerns about the USSD debt, a development as various parties in the sector had made concerted efforts to tackle the matter.
