Starting Tuesday, June 3, banks in Nigeria will no longer deduct USSD transaction charges from customers’ accounts. Instead, the Nigerian Communications Commission (NCC) has directed that these charges be taken directly from users’ mobile airtime.
This update was communicated to customers by United Bank for Africa (UBA) in an email on Tuesday.
“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,” the bank stated.
“Going forward, these charges will be deducted directly from your mobile airtime balance in accordance with the NCC’s End-User Billing model,” the email continued.
UBA explained that customers will be billed ₦6.98 for every 120-second USSD session, and the charges will be collected by their mobile network providers.
A prompt for user consent will appear at the start of each session, and deductions will only happen if the customer confirms and the bank is available to process the request.
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“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 advised.
The bank also reminded users that other digital banking platforms remain available for their convenience.
The NCC’s directive appears to be a step toward resolving the long-standing conflict between banks and telecom companies over unpaid USSD service fees.
In December 2024, the Central Bank of Nigeria and the NCC instructed both parties to settle the ₦250 billion USSD debt.
Following threats from telecom operators to halt USSD services, the NCC in January warned that it would suspend the service and name defaulting banks. It later ordered telcos to disconnect USSD access for nine banks over the unpaid debt.
By the end of February, MTN Nigeria confirmed receiving ₦32 billion out of the ₦72 billion owed to it by banks.