NCC directs banks on charges for consumers’ USSD transactions

*The Nigerian Communications Commission directs Deposit Money Banks to commence the billing method for Unstructured Supplementary Service Data banking services directly from their customers’ mobile airtime

Gbenga Kayode | ConsumerConnect

Deposit Money Banks (DMBs) have commenced implementation of the Nigerian Communications Commission’s (NCC) new directive for a change in the billing method for Unstructured Supplementary Service Data (USSD) banking services for their customers.

ConsumerConnect reports the NCC recently directed DMBs to start deducting charges for USSD transactions directly from telecoms consumers’ mobile airtime.

The Commission, in the latest directive, which became effective Tuesday, June 3, 2025, also stipulated that charges for USSD transactions for consumers would no longer be deducted from customers’ bank accounts, but directly from their mobile airtime balance.

Earlier April 2025, the NCC and industry stakeholders had projected that telecoms subscribers would be paying for the use of USSD with deductions from their airtime.

Insight on end-user billing system

Hitherto, talks were at advanced stages between the Deposit Money Banks and telecommunications operators to introduce an end-user billing system.

End-user billing refers to a system where the customer is directly charged for using the USSD service rather than the service provider being charged.

By implication, the telecoms consumer cum bank customer’s mobile account (airtime or direct billing) is debited for the USSD session, regardless of any subsequent charges the bank might apply, according to the Commission.

UBA implements directive, sensitises customers

Subsequently, the United Bank for Africa (UBA) Plc, in an e-mail to customers Tuesday, stated that the charges would no longer be deducted from customers’ accounts.

The UBA, in the e-mail, affirmed the telecoms sector regulator’s directive would become effective from Tuesday, June 3.

The bank also said: “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 model.”

The financial institution further explained: “Under this new billing structure, each USSD session will attract a charge of N6.98 per 120 seconds, which will be billed by your mobile network operator.

“You will receive a consent prompt at the start of each session, and airtime will only be deducted upon your confirmation and availability of the bank to fulfil this service.”

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

Besides, the UBA said it’s customers could continue using other digital banking options and Internet banking platform for convenience.

Industry analysts reportedly opined the NCC’s latest directive to DMBs on USSD transactions may be the Commission’s strategy to address the historical USSD payment conflict between Mobile Network Operators (MNOs) and commercial banks.

It is recalled the Central Bank of Nigeria (CBN) and the NCC, December 2024,  jointly directed the Mobile Network Operators and DMBs to resolve the estimated, long-standing N250 billion USSD debt.

However, sequel to MNOs’ reported threats to withdraw services over the USSD debt accumulated by banks, the NCC, January this year, threatened to suspend the USSD service and publish a list of banks still owing Telcos.

The industry regulator, January 15 this year as well directed the telecoms companies to disconnect the USSD codes assigned to nine banks by January 27 due to unpaid debts.

As of February 28, MTN Nigeria Communications Plc, disclosed said it received N32 billion out of N72 billion from the DMBs as part of payment for the USSD debt in the ecosystem.

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