The Nigerian Communications Commission (NCC) has instructed commercial banks to begin withdrawing charges for USSD (Unstructured Supplementary Service Data) services directly from users’ phone airtime rather than their bank accounts.
In a customer notification sent out on Tuesday, the United Bank for Africa (UBA) announced the implementation of the directive, which becomes effective from Tuesday, June 3, 2025. According to UBA, deductions for USSD banking will no longer come from users’ bank balances.
The message from the bank 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 emphasized that customers can still access financial services conveniently via mobile apps or the bank’s internet banking portal. The latest move by the NCC appears to be a strategic attempt to put an end to the persistent USSD payment disagreement between telecom providers and Nigerian banks.
Recall that in December 2024, both the Central Bank of Nigeria (CBN) and NCC jointly mandated telcos and Deposit Money Banks (DMBs) to reach a resolution over the ongoing dispute involving a staggering N250 billion in unpaid USSD service fees.
Telecommunication companies had previously threatened to terminate USSD connectivity due to the piling debts. In response, the NCC issued a warning in January, stating that it would suspend USSD access and publicly name defaulting banks.
On January 15, the regulator ordered network providers to deactivate USSD codes assigned to nine financial institutions by January 27 as a consequence of their unsettled obligations. Later, on February 28, MTN Nigeria disclosed that it had recovered N32 billion from the N72 billion owed by banks.
Over time, telcos have repeatedly voiced their frustration about the unresolved USSD liabilities, prompting stakeholders in the industry to intensify efforts to reach a sustainable solution.
