NCC Mandates Changes To USSD Charges: Banks To Deduct From Users’ Mobile Airtime
The Nigerian Communications Commission (NCC) has announced a new directive requiring Deposit Money Banks to deduct charges for Unstructured Supplementary Service Data (USSD) transactions directly from users’ mobile airtime instead of their bank accounts.
In a notification sent to customers on Tuesday, the United Bank for Africa (UBA) confirmed that this change will take effect on June 3, 2025. The UBA’s statement outlined that, effective on this date, customers will no longer see charges for USSD banking services deducted from their bank accounts. Instead, these payments will be deducted directly from users’ mobile airtime balances, aligning with the NCC’s End-User Billing model.
Under the new billing structure, every USSD session will incur a charge of ₦6.98 for every 120 seconds, which will be billed by the users’ mobile network operator. Customers will receive a consent prompt at the beginning of each session, and airtime will only be deducted once they confirm their intention to use the service and the bank is available to process the transaction.
For those who prefer not to continue using USSD banking under this new model, UBA provides the option to discontinue the service. Customers are encouraged to utilize alternative digital banking channels and internet banking platforms for their transactions.
This directive marks a significant step in addressing the long-standing disputes over USSD payment between commercial banks and mobile network operators. In December 2024, the Central Bank of Nigeria and the NCC tasked these parties with resolving a staggering ₦250 billion USSD debt.
Following threats from telecom companies to cut off services due to outstanding debts owed by banks, the NCC warned in January that they would suspend USSD services and disclose the names of banks that were still in debt. On January 15, the regulator instructed telecom operators to disconnect USSD codes assigned to nine banks by January 27 if the debts remained unpaid.
As of February 28, MTN Nigeria reported receiving ₦32 billion of the ₦72 billion owed by banks in relation to the USSD debt.
