The Nigerian Communications Commission (NCC) has mandated Deposit Money Banks (DMBs) to stop deducting unstructured supplementary service data (USSD) banking charges from customers’ bank accounts.
Going forward, all USSD charges will now be directly deducted from users’ mobile airtime, in a move expected to resolve the long-standing debt crisis between banks and telecom operators.
In compliance with the NCC’s directive, United Bank for Africa (UBA) informed its customers via email on Tuesday that the new billing model took effect on Tuesday, June 3, 2025.
“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,” the statement from UBA read.
UBA explained that under the End-User Billing model introduced by the NCC, each USSD session will attract a N6.98 charge per 120 seconds, deducted directly by mobile network operators from the user’s airtime.
Customers will receive a consent prompt at the start of each USSD session, and charges will only apply upon user confirmation and the bank’s availability to fulfill the service. Customers who prefer not to use the new billing system are advised to discontinue USSD usage and switch to other digital channels like mobile apps and internet banking.
The latest directive comes as the NCC and Central Bank of Nigeria (CBN) work to resolve a N250 billion USSD debt dispute between telecom operators and banks.
In December 2024, both regulators jointly ordered telcos and banks to find a solution to the impasse, which had led to threats by telecom companies to withdraw USSD services entirely.
On January 15, 2025, the NCC directed mobile network operators to disconnect USSD codes assigned to nine banks over unpaid debts, with the deadline set for January 27.
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By February 28, MTN Nigeria confirmed it had received N32 billion out of N72 billion owed by banks, marking a partial resolution.
Telecom companies have consistently decried the unpaid USSD charges, arguing that banks benefitted from the service without remitting due payments for years. The shift to an airtime-based billing model is seen as a strategy to streamline payments and remove ambiguity in financial settlements between operators and banks.
With this new directive, customers using USSD codes such as *919# (UBA), *737# (GTBank), and others will now need to ensure they have sufficient airtime to complete transactions.
Analysts believe the model may reduce USSD usage among low-income users who may not have constant airtime but rely on USSD for financial services.
