The Nigerian Communications Commission (NCC) has directed all banks to stop debiting USSD transaction charges from customers’ bank accounts.
This directive took effect from Tuesday, June 3, 2025.
Diaspora digital media (DDM) reports a notice sent by United Bank for Africa (UBA) to its customers, charges for Unstructured Supplementary Service Data (USSD) services will now be deducted directly from customers’ mobile airtime balances.
This change aligns with the NCC’s End-User Billing (EUB) model.
The UBA statement reads, “Effective June 3, 2025, charges for USSD banking services will no longer be deducted from your bank account.”
It adds, “These charges will now be deducted directly from your mobile airtime balance.”
Under the new billing model, each USSD session will attract a charge of ₦6.98 per 120 seconds.
Mobile Network Operators (MNOs), rather than banks, will now bill this fee.
Customers will be prompted to give consent before any airtime deduction occurs.
Deductions will only happen if the user confirms the transaction and if the bank is available to complete the request.
UBA advised customers who do not wish to continue using USSD banking under this new model to discontinue use of the USSD channel.
The new directive comes as the latest development in a prolonged dispute between Deposit Money Banks (DMBs) and Mobile Network Operators (MNOs) over unpaid USSD service charges.
By December 2024, the debt owed by banks to telcos had reportedly reached ₦250 billion.
This debt accumulation prompted MNOs to threaten suspension of USSD services.
In response, the Central Bank of Nigeria (CBN) and the NCC jointly directed both parties to resolve the dispute.
They mandated adoption of the End-User Billing model, which shifts the payment responsibility directly to customers via their airtime.
With this implementation, customers using USSD banking services will now bear the cost directly.
This change effectively ends deductions from bank account balances for USSD transactions.
The shift aims to clarify billing responsibilities and ensure continued availability of USSD banking services.
Customers are advised to monitor their airtime balances to avoid disruption when using USSD services.
Diaspora Digital Media (DDM) will continue to track developments on this issue and provide updates.
