News Highlights:
- USSD Charges Now Deducted from Airtime
- Move Aims to Resolve ₦250bn USSD Debt Dispute
In a significant policy shift set to reshape mobile banking transactions in Nigeria, the Nigerian Communications Commission (NCC) has mandated that charges for Unstructured Supplementary Service Data (USSD) services be deducted directly from users’ mobile airtime rather than their bank accounts.
Digital TimesNG reports that the implementation of this directive began on Tuesday, June 3, 2025, with banks such as the United Bank for Africa (UBA) notifying their customers of the change.
In an official communication, UBA confirmed that in compliance with the NCC’s End-User Billing model, all USSD-related fees will now be billed by mobile network operators and charged to the subscriber’s airtime balance.
“Effective June 3, 2025, charges for USSD banking services will no longer be deducted from your bank account. These charges will now be deducted from your mobile airtime balance,” the bank’s statement read.
“Each USSD session will attract a fee of ₦6.98 per 120 seconds, billed by your network provider. Users will receive a prompt for consent before any deduction is made.”
This new billing model grants users the autonomy to either confirm and continue with USSD transactions or opt out, especially if they prefer to avoid airtime deductions. Customers are also encouraged to explore alternative digital channels such as mobile apps and internet banking for seamless transactions.
The NCC’s directive appears to be a strategic move to resolve the long-standing financial impasse between mobile network operators and commercial banks over unpaid USSD service fees.
At the heart of the dispute lies a ₦250 billion debt accrued over several years, largely due to the banks’ delayed or defaulted payments for USSD services provided by telecom operators.
Efforts to settle this debt intensified in late 2024, when the Central Bank of Nigeria (CBN) and the NCC jointly instructed both parties to find a resolution. By January 2025, the NCC threatened drastic measures, including suspending USSD services and publicly naming debtor banks.
This culminated in a directive on January 15, instructing telcos to disconnect USSD codes assigned to nine defaulting banks by January 27.
The tensions appeared to ease slightly when MTN Nigeria confirmed receiving ₦32 billion out of the ₦72 billion owed by banks, signalling a partial resolution.
However, the broader conflict highlighted systemic challenges in managing digital financial services infrastructure and revenue-sharing models in Nigeria’s evolving fintech ecosystem.
The direct billing of USSD charges to users’ airtime may now mark a turning point in the dispute, shifting the cost burden to consumers while offering telcos a more straightforward revenue recovery process.
As stakeholders adjust to this new reality, analysts say the development could drive greater adoption of alternative banking platforms while prompting a reassessment of pricing structures and customer engagement strategies in the mobile banking sector.