The Nigerian Communications Commission (NCC) has issued a directive mandating Deposit Money Banks (DMBs) to begin deducting charges for Unstructured Supplementary Service Data (USSD) transactions directly from customers’ mobile airtime, starting Tuesday, June 3, 2025.
This marks a significant shift in the long-standing dispute between telecom operators and banks over who bears the cost burden of USSD services, which are widely used for mobile banking across the country.
In a message sent to customers, United Bank for Africa (UBA) confirmed the implementation of the new policy. The bank stated that the deductions will no longer come from customers’ bank accounts but instead from their airtime balances, aligning with the NCC’s End-User Billing (EUB) model.
“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,” UBA said in its customer notice.
“Going forward, these charges will be deducted directly from your mobile airtime balance. Under this new billing structure, each USSD session will attract a charge of ₦6.98 per 120 seconds, which will be billed by your mobile network operator.”
Customers will receive a consent prompt at the start of each session, and charges will only be applied if the customer confirms and the bank is able to provide the service. UBA added that users who prefer not to continue under the new model can opt out of using USSD banking and switch to internet banking or other digital platforms.
Background: A Prolonged Conflict Over USSD Debt
The NCC’s new directive appears to be part of broader efforts to resolve a protracted conflict between telecom operators and commercial banks over a USSD debt that has ballooned to over ₦250 billion.
In December 2024, the Central Bank of Nigeria (CBN) and the NCC jointly intervened, directing both parties to settle the longstanding debt. Despite this, tensions continued to escalate.
In January 2025, the NCC went a step further by threatening to suspend USSD services entirely and publicly name banks that failed to clear their debts. On January 15, the commission directed telecom companies to disconnect USSD shortcodes assigned to nine banks by January 27 due to non-payment.
One of the major telecom providers, MTN Nigeria, later confirmed it had received ₦32 billion of the ₦72 billion owed by the banks, signaling partial compliance with the repayment directive.
The telecom industry, under the Association of Licensed Telecom Operators of Nigeria (ALTON), has consistently raised alarms over the unpaid USSD charges, warning that the situation is unsustainable and threatens the viability of continued service provision.
Implications for Users
The billing model change will likely have a direct impact on millions of Nigerian users, especially in underserved areas where USSD remains a critical channel for banking and payments. The shift to airtime-based billing may also cause some customers to reconsider their usage habits or move towards app-based banking solutions.
With telecom operators now having regulatory backing to recover their service costs directly, industry observers see the move as a win for the telcos but also a signal that regulators are becoming less tolerant of delayed bank compliance.
As the situation continues to unfold, stakeholders will be watching closely to see whether the new directive brings lasting peace to Nigeria’s troubled USSD ecosystem or sets the stage for a fresh round of disputes.
