NCC Orders Banks to Deduct USSD Charges from Users’ Airtime

The Nigerian Communications Commission (NCC) has directed all Deposit Money Banks (DMBs) to begin deducting charges for Unstructured Supplementary Service Data (USSD) banking services directly from users’ mobile airtime, rather than from their bank accounts.

This new directive, which takes effect from Tuesday, June 3, 2025, was communicated to customers by the United Bank for Africa (UBA) via email.

“In line with the directive of the Nigerian Communications Commission (NCC), please be informed that effective June 3, 2025, charges for USSD banking services will no longer be deducted from your bank account,” the statement read. “Going forward, these charges will be deducted directly from your mobile airtime balance in accordance with the NCC’s End-User Billing model.”

Under the new structure, each USSD session will cost ₦6.98 per 120 seconds and will be billed by the customer’s mobile network operator. Customers will be prompted to give consent at the beginning of each session, and airtime will only be deducted if the customer confirms and the bank is available to fulfill the request.

UBA also informed customers that they may discontinue USSD banking services if they do not wish to continue under the new billing model. It encouraged users to explore alternative digital banking platforms such as mobile apps and internet banking.

The directive is the latest attempt to resolve the long-standing dispute between telecom operators and banks over the settlement of USSD service charges. In December 2024, the Central Bank of Nigeria (CBN) and NCC jointly ordered both parties to resolve a ₦250 billion debt accrued from USSD transactions.

Following a standoff earlier in the year, the NCC had threatened to suspend the USSD service entirely and disconnect defaulting banks. On January 27, 2025, it ordered the disconnection of USSD codes for nine banks due to unpaid debts. MTN Nigeria later reported receiving ₦32 billion out of the ₦72 billion owed by banks as part of the debt repayment.