The Nigerian Communications Commission (NCC) has mandated all Deposit Money Banks (DMBs) to begin deducting charges for Unstructured Supplementary Service Data (USSD) transactions directly from users’ mobile airtime, marking a significant shift in how banking services are billed in Nigeria.
The directive, which took effect on Tuesday, June 3, 2025, was communicated to customers by United Bank for Africa (UBA) via email. UBA stated that under the new billing system, charges for USSD banking services will no longer be withdrawn from users’ bank accounts, but instead from their mobile phone airtime, in line with the NCC’s End-User Billing model.
Details of the New USSD Billing Model
In the email notice, UBA explained that:
“Each USSD session will attract a charge of ₦6.98 per 120 seconds, billed by your mobile network operator. A consent prompt will appear at the start of each session. Airtime will only be deducted upon user confirmation and once the bank is available to complete the service.”
Users who do not agree to this model may opt to discontinue using USSD banking altogether and are encouraged to explore alternative digital banking platforms such as mobile apps, internet banking, or ATMs.
Resolving a Longstanding Financial Dispute
The new directive from NCC appears to be a decisive move by the NCC to end the prolonged dispute between telecom operators and commercial banks over unpaid USSD service fees, which have accumulated into a multi-billion-naira debt.
In December 2024, both the Central Bank of Nigeria (CBN) and the NCC had jointly instructed telcos and banks to resolve a ₦250 billion USSD debt that had generated friction in the financial ecosystem.
Following continued threats by telecom operators to suspend USSD services to banks over non-payment, the NCC in January 2025 gave a stern warning. The regulator announced it would suspend USSD services entirely and publicly name defaulting banks if the debt was not settled.
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Indeed, by January 27, telcos were instructed to disconnect USSD codes assigned to nine banks due to unpaid balances. Later, on February 28, MTN Nigeria confirmed receipt of ₦32 billion from the banks, out of an outstanding ₦72 billion, as part of a payment settlement plan.
Implications for Users and Banks
With the new USSD billing system now active, banks are expected to no longer carry the burden of paying for user sessions upfront—a major pain point in previous years. The burden now shifts to end-users, who will experience more transparent billing but may need to adjust to airtime usage for banking services.
This also aligns with the NCC’s broader strategy to strengthen the financial sustainability of telecom services and prevent future interruptions in mobile banking access, especially in rural and underserved areas where USSD is a vital service.
UBA reassured customers that digital alternatives remain available, and encouraged users to adopt mobile and internet banking for more seamless and cost-effective experiences.
A Turning Point in Nigeria’s Digital Finance Landscape
The implementation of the NCC USSD airtime deduction directive underscores the evolving regulatory landscape as Nigeria strives to balance digital innovation with economic realities. By introducing end-user billing, the commission may be aiming to ensure transparency, fairness, and accountability between financial service providers and telecom companies.
Financial analysts believe this move could improve relations between telcos and banks while providing more clarity to consumers. However, the true test will be how users in low-income or airtime-sensitive demographics adapt to the change.
