The Nigerian Communications Commission (NCC) has directed Deposit Money Banks (DMBs) to stop deducting charges for Unstructured Supplementary Service Data (USSD) transactions directly from customers’ bank accounts. Effective June 3, 2025, these charges will instead be deducted from users’ mobile airtime balances.
United Bank for Africa (UBA) informed its customers via email that under the new billing structure, each USSD session will attract a charge of ₦6.98 per 120 seconds, billed by the customer’s mobile network operator. Customers will receive a consent prompt at the start of each session, and airtime will only be deducted upon their confirmation and the bank’s availability to provide the service. Customers unwilling to continue using USSD banking under this model may choose to discontinue the service.
UBA also encouraged customers to use other digital banking options such as mobile apps and internet banking for convenience. First City Monument Bank (FCMB) issued a similar notice, confirming the new billing method and urging customers to consider alternative banking channels.
This directive aims to resolve the long-standing USSD payment dispute between mobile network operators and commercial banks. Historically, banks deducted USSD charges from customers’ accounts but often failed to remit payments to telcos, leading to a debt accumulation estimated at ₦250 billion.
In December 2024, the Central Bank of Nigeria (CBN) and NCC mandated both parties to settle the debt. Following threats by telecom operators to withdraw USSD services, the NCC threatened to suspend the service and directed telcos to disconnect USSD codes for banks with unpaid debts. By February 2025, MTN Nigeria reported receiving ₦32 billion out of the ₦72 billion owed by banks.
The new billing model, known as the End-User Billing (EUB) system, is expected to bring transparency and fairness to USSD transaction charges, ensuring that fees are collected and shared appropriately between banks and telecom operators.
