NCC Moves USSD Charges to Airtime, Not Bank Accounts

 New Billing Model Begins June 3 as Telecom-Bank Dispute Nears Resolution

Starting today, June 3, 2025, charges for USSD transactions in Nigeria will no longer be deducted from customers’ bank accounts.

 Instead, the Nigerian Communications Commission (NCC) has introduced a new directive that mandates all USSD-related fees be charged directly to users' mobile airtime.

The move, which marks a significant shift in how digital financial services are billed, was confirmed in an email from United Bank for Africa (UBA) to its customers.

 Under the new system—referred to as the End-User Billing (EUB) model—each USSD session will cost ₦6.98 per 120 seconds, with deductions handled by mobile network operators.

Customers initiating USSD sessions will first receive a consent prompt. Charges will only apply if the customer agrees to proceed and the selected bank is available to process the request.

UBA noted that customers who are not comfortable with the new arrangement can opt out of USSD services entirely and continue using alternative digital platforms such as mobile apps or internet banking.

This development follows years of tension between telecom operators and financial institutions over unpaid USSD service charges.

 The dispute, which reportedly involves over ₦250 billion in unpaid fees, had threatened the continuity of USSD services in the country.

In early 2025, the NCC issued a stern warning to defaulting banks, threatening suspension of USSD access. 

By February, MTN Nigeria confirmed the receipt of ₦32 billion out of ₦72 billion owed by banks, signaling the beginning of a resolution process.

The NCC says the EUB model will ensure transparency, sustainability, and fairness, protecting telecom operators from unpaid debts while giving consumers control over their spending.

As the transition unfolds, industry watchers will be looking to see how the new model affects digital inclusion and the broader financial ecosystem, particularly for millions of Nigerians who rely on USSD as a primary channel for banking and payments.