Nigerian Banks to start deducting USSD charges from customers airtime

The Nigerian Communications Commission (NCC) has ordered commercial banks to start deducting charges for USSD transactions directly from users’ mobile airtime. This represents a shift where previous deductions were made from users’ bank accounts.

According to an email from the United Bank for Africa (UBA) to customers on Tuesday, the Unstructured Supplementary Service Data (USSD) charges will no longer be deducted from customers’ accounts but directly from users’ mobile airtime balance in accordance with the NCC’s End-User Billing model. Under the new structure, each USSD session will now attract a charge of N6.98 per 120 seconds and be billed by customers’ mobile network operators. 

The latest development will be effective from Tuesday, June 3, 2025, according to the commercial bank.

“In line with the directive of the Nigerian Communications Commission, please be informed that effective June 3, 2025, charges for USSD banking services will no longer be deducted from your bank account,” the statement noted.

In addition to the notification, UBA explained that customers will receive a consent prompt at the start of each session, while the airtime will be deducted subject to confirmation and availability of the bank’s services. Customers also have the option to discontinue the use of the USSD channels anytime they wish to opt out. 

“If you do not wish to continue using USSD banking under this new model, you may choose to discontinue use of the USSD channel,” it reads.

As the USSD service has been a banking alternative for users due to its usage without the need for an internet connection, it has been a vital service, enabling customers to conduct banking transactions without Internet access

Also Read: Banks scramble to repay N250 billion USSD debt to avert disconnection.

Long-standing USSD debt

The new directive is the latest attempt by the Communications Regulator to prevent any future clash owing to the recent N250 billion USSD debt issue between mobile operators and commercial banks. 

Mobile Network Operators (MNOs) like Airtel, MTN, and Globacom made attempts to intensify their clamour over the unpaid debt, stressing its effect on their businesses. They also threatened to shut down USSD services due to incurring losses, a move that was halted following interventions by government authorities.

In December, a joint statement issued by both NCC and the Central Bank of Nigeria (CBN) directed commercial banks and telecom operators to resolve the dispute through a document outlining the payment procedures and operational guidelines to follow when clearing the debts. 

The agencies stressed that 85 per cent of USSD debts that accumulated after February 2022 in terms of their outstanding invoices must be paid by December 31, 2024. Commercial banks are also required to ensure that 85 per cent of future invoices are settled within one month of issuance.

The document also mandated that 60 per cent of the debts incurred before the implementation of Application Programming Interfaces in February 2022 must be finalised by January 2, 2025, with full settlement due by July 2, 2025.

Following the directives, there were threats to disconnect banks that failed to comply with the USSD services. Amid that, the commercial banks made significant progress in repaying their debts, further preventing the disconnection of the services by telecom operators as directed by the NCC.

“A number of them are complying in line with the regulatory intervention made by the CBN and NCC. We still have a few hard debtors who haven’t complied, but when the time comes, according to the protocol of that circular, we are going to disconnect,” said Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON)

The nine defaulting banks that would have seen their USSD codes disconnected include Fidelity Bank Plc with the 770 USSD code, First City Monument Bank (*329#), Jaiz Bank Plc (*773), and Polaris Bank Limited (*833#). Others are Sterling Bank Limited (*822#), United Bank for Africa Plc (*919#), Unity Bank Plc (*7799#), Wema Bank Plc (*945#), and Zenith Bank Plc (*966#).