By Atoyebi Nike
The Nigerian Communications Commission has directed commercial banks to begin deducting USSD transaction charges directly from customers’ mobile airtime, ending the practice of debiting bank accounts for the service.
The Nigerian Communications Commission (NCC) issued this directive to all Deposit Money Banks (DMBs), ending years of conflict between banks and telecom operators.
The United Bank for Africa (UBA) notified customers of the change via email on Tuesday.
According to UBA, the new billing model will deduct ₦6.98 per 120 seconds for each USSD session. The charges will be applied by the user’s mobile network operator.
Customers will be prompted to give consent before each USSD session. Airtime will only be deducted if they agree and the bank’s service is available.
UBA encouraged customers to use other digital platforms, such as mobile apps and internet banking, for more seamless transactions.
The NCC’s new directive appears aimed at resolving the longstanding dispute over USSD service debts.
As of December 2024, the Central Bank of Nigeria and NCC reported a ₦250bn debt owed by banks to telecom operators.
In January 2025, NCC ordered telcos to disconnect USSD codes assigned to nine banks due to non-payment.
MTN Nigeria later confirmed it received ₦32bn of the ₦72bn owed by banks.
The debt had strained the relationship between banks and telcos for years.
This billing switch to end-user airtime is seen as a way to prevent future disputes and ensure telcos are paid promptly for USSD services.
