Deduct USSD charges from airtime, not bank accounts – NCC to banks

Nigerian banks have been directed by the Nigerian Communications Commission, NCC to deduct Unstructured Supplementary Service Data, USSD charges from airtime of subscribers and not from their bank accounts.

The United Bank for Africa, UBA in an email sent to customers on Tuesday disclosed that it has complied with the directives and effected the new billing arrangement since June 3, 2025.

Advertisements

“In line with the Nigerian Communications Commission’s directive, charges for USSD banking services will no longer be deducted from your bank account,” UBA stated. “Going forward, deductions will be made from your mobile airtime in accordance with the NCC’s End-User Billing (EUB) model.”

Under the revised system, each USSD session will cost ₦6.98 per 120 seconds, billed by mobile network operators (MNOs). Customers will receive a prompt at the start of every session, requiring their consent before airtime is deducted — ensuring transparency and user control.

Advertisements

UBA assured customers of continued access to alternative digital platforms like mobile apps and internet banking for seamless transactions.

This directive marks a significant turn in the protracted battle over USSD service payments between banks and telecom operators. For years, the two sectors have clashed over who should bear the cost of USSD transactions, a conflict that saw banks accumulate a staggering ₦250 billion debt to telecom providers.

In December 2024, the Central Bank of Nigeria (CBN) and the NCC intervened, ordering both parties to resolve the dispute. Tensions escalated in January 2025 when the NCC threatened to suspend USSD services and publicly name debtor banks. By month’s end, telcos disconnected USSD services for nine banks over unpaid debts.

Progress was made by February 28, when MTN Nigeria confirmed the receipt of ₦32 billion out of the ₦72 billion owed by banks.

The new airtime-based billing system is expected to streamline USSD payments, put an end to the longstanding disputes, and give customers greater control over their banking costs.

Advertisements