Nigerian Banks to Deduct USSD Charges Directly from Customers' Airtime

In a significant shift affecting millions of mobile banking users, Nigerian banks have commenced the deduction of Unstructured Supplementary Service Data (USSD) charges directly from customers' mobile airtime balances, rather than their bank accounts. This change, effective from June 3, 2025, aligns with the Nigerian Communications Commission's (NCC) End-User Billing (EUB) model, aiming to resolve longstanding disputes over USSD service payments.

Understanding the New Billing Structure

Under the new directive, each USSD session will attract a charge of ?6.98 for every 120 seconds, billed directly by the customer's mobile network operator. Before any deduction occurs, users will receive a consent prompt at the start of each session, ensuring transparency and user control over the charges.

Several banks, including United Bank for Africa (UBA), Ecobank, and First City Monument Bank (FCMB), have communicated this change to their customers via emails and official notices. UBA's notice stated:

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

Customers are advised to ensure sufficient airtime balance before initiating USSD transactions. For those uncomfortable with this new billing method, banks suggest utilizing alternative digital banking platforms such as mobile apps and internet banking.

 Telcos Raise Concerns Over Implementation

While banks assert that this change follows the NCC's directive, telecom operators, under the Association of Licensed Telecom Operators of Nigeria (ALTON), have expressed concerns. ALTON's Chairman, Engr. Gbenga Adebayo, emphasized that the transition to end-user billing should only proceed after banks settle outstanding debts to telecom operators. He stated:

"The agreement was that if the banks finally cleared all USSD debts owed to the telcos by June 2, 2025, they are free to migrate to the end-user billing method, so long as the model of migration is transparent and agreed upon by the telcos."

This disagreement underscores the ongoing tension between banks and telecom operators regarding USSD service payments.

Background: The ?250 Billion USSD Debt Dispute

The move to deduct USSD charges from customers' airtime stems from a protracted dispute between Nigerian banks and telecom operators over unpaid USSD service fees, reportedly amounting to ?250 billion. The NCC's adoption of the EUB model aims to resolve this impasse by shifting the payment responsibility directly to end-users.

However, the implementation has been contentious, with telecom operators insisting on debt settlement before fully embracing the new billing system. The NCC's directive represents a significant regulatory intervention intended to balance the interests of banks, telecom operators, and consumers.

Implications for Mobile Banking Users

For customers, this change means that initiating USSD banking transactions now requires sufficient airtime balance. Each session will prompt users for consent before deducting the ?6.98 fee. Banks have reassured customers that alternative banking channels remain available for those who prefer not to use USSD services under the new billing model.

As this development unfolds, Just Liberation News will continue to monitor the situation, providing updates on any further changes and their impact on consumers.