Nigerian Communications Commission (NCC) directs banks to deduct USSD transaction fees from users’ mobile airtime

Wednesday, June 4, 2025 - The Nigerian Communications Commission (NCC) has mandated deposit money banks (DMBs) to cease deducting unstructured supplementary service data (USSD) charges directly from customers’ bank accounts, with the fees now to be deducted from users’ mobile airtime.

The new directive, which took effect on June 3, 2025, was communicated to customers by the United Bank for Africa (UBA) in an email on Tuesday, June 3. The change aligns with the NCC’s End-User Billing (EUB) model, which shifts responsibility for USSD transaction charges from banks to mobile network operators (MNOs).

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

“Going forward, these charges will be deducted directly from your mobile airtime balance in accordance with the NCC’s End-User Billing (EUB) model.”

Under this structure, each USSD session will attract a fee of ₦6.98 per 120 seconds, billed by the mobile network operator. Customers will receive a prompt at the beginning of each session requesting their consent, and charges will only apply if they confirm and if the bank is able to process the request.

The bank noted that customers who do not wish to continue using the USSD platform under the new model may opt to discontinue its use, while other digital and internet banking options remain available.

This move by the NCC appears to be part of ongoing efforts to resolve the long-standing USSD debt crisis between mobile operators and commercial banks. In December 2024, the NCC and the Central Bank of Nigeria (CBN) had jointly urged both parties to settle a ₦250 billion debt related to USSD services.

Tensions had escalated in early 2025, with telecom companies threatening to suspend USSD services due to non-payment. The NCC responded in January by ordering the disconnection of USSD codes assigned to nine banks over unpaid debts. Subsequently, MTN Nigeria confirmed in February that it received ₦32 billion out of the ₦72 billion owed by banks.

The latest directive signals the regulator’s commitment to ensuring a sustainable framework for USSD service delivery, while promoting transparency and reducing disputes between financial institutions and telecom providers.