Deposit money banks (DMBs) in Nigeria will now deduct charges for unstructured supplementary service data (USSD) transactions directly from customers’ airtime as opposed to their bank accounts.
This development, according to the banks, follows a directive of the Nigerian Communications Commission (NCC) on the implementation of end-user billing proposed years ago.
“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,” UBA said in a notice sent to its customers on Tuesday.
“Going forward, these charges will be deducted directly from your mobile airtime balance in accordance with the NCC’s End-User Billing (EUB) model,” it added.
Charge per session
UBA clarified that under this new billing structure, each USSD session will attract a charge of N6.98 per 120 seconds, which will be billed by the customer’s 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,” the bank stated.
The UBA said customers can continue using other digital banking options and the internet banking platform for convenience.
Similarly, First City Monument Bank (FCMB) also announced this change in an email message to customers.
“Each USSD session will cost N6.98 per 120 seconds, charged by your mobile network. You will be asked to approve the charge before it’s deducted from your airtime. If you prefer, you can use other banking channels like ATMs, mobile apps, or Internet banking,” the bank stated.
Addressing the USSD debt debacle
This development comes as a solution to the longstanding issue of USSD debt that has been causing rancour between the commercial banks and telecom operators over the years, as the former often fail to remit to the latter after deducting from customers’ accounts.
- In December 2024, the Central Bank of Nigeria (CBN) and the NCC directed mobile network operators (MNOs) and DMBs to resolve the long-standing N250 billion 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 N32 billion out of N72 billion from banks as part of payment for the USSD debt.
