NCC orders banks to stop deducting USSD charges from customers’ accounts
The Nigerian Communications Commission (NCC) has directed all deposit money banks (DMBs) to stop deducting charges for Unstructured Supplementary Service Data (USSD) transactions directly from customers’ bank accounts. Instead, these fees will now be charged from users’ mobile airtime balances.
In a notification to its customers on Tuesday, the United Bank for Africa (UBA) announced that the new billing method will take effect from June 3, 2025, in compliance with the NCC’s directive.
“Effective June 3, 2025, charges for USSD banking services will no longer be deducted from your bank account,” the statement read. “These charges will now be billed directly from your mobile airtime in accordance with the NCC’s End-User Billing (EUB) model.”
Under the new structure, customers will be charged ₦6.98 per 120 seconds per USSD session by their mobile network operators. Before each session begins, users will receive a consent prompt. Airtime will only be deducted if the customer confirms the transaction and the bank is available to deliver the service.
Customers who do not wish to accept the new billing arrangement may opt out of using USSD banking services altogether. UBA has reassured users that alternative channels—such as mobile apps and internet banking platforms—remain available for their convenience.
This move by the NCC is seen as part of broader efforts to resolve the long-standing dispute between mobile network operators (MNOs) and commercial banks over unpaid USSD service charges, which have reportedly accumulated to ₦250 billion.
In December 2024, the Central Bank of Nigeria (CBN) and the NCC jointly directed banks and telcos to settle the debt. The standoff had escalated in early 2025, with telcos threatening to cut off USSD services, prompting the NCC to intervene. On January 15, the commission ordered the disconnection of USSD codes for nine banks over unpaid debts.
As of February 28, MTN Nigeria confirmed it had recovered ₦32 billion out of a ₦72 billion debt owed by banks as part of the resolution process.
The implementation of the EUB model represents a shift toward transparency and accountability in the billing of USSD services, aiming to protect end-users while ensuring service continuity.
