The Nigerian Communications Commission (NCC) has issued a new directive mandating all Deposit Money Banks (DMBs) to charge customers for USSD transactions directly from their mobile airtime, instead of their bank accounts.
In an official communication sent to customers on Tuesday, June 3, 2025, United Bank for Africa (UBA) announced the immediate implementation of this new USSD billing model, in compliance with the NCC’s End-User Billing directive.
According to UBA’s statement:
“Effective June 3, 2025, charges for USSD banking services will no longer be deducted from your bank account. These charges will now be deducted directly from your mobile airtime balance, as directed by the Nigerian Communications Commission.”
Key Highlights of the New USSD Billing Structure:
- Charge Rate: ₦6.98 per 120 seconds
- Dedication Method: Directly from mobile airtime, not bank accounts
- User Consent: A prompt will appear at the beginning of each session requesting your approval
- Alternative Options: Customers may opt out of USSD and continue banking via mobile apps, internet banking, or ATM services
This development follows the long-standing USSD payment dispute between Nigerian banks and telecom operators. The conflict involved a ₦250 billion debt accumulated by banks for USSD services provided by telcos.
In response to this, the NCC and the Central Bank of Nigeria (CBN) in December 2024 instructed both parties to find a resolution. However, by January 2025, the NCC threatened to suspend USSD access and even published a list of defaulting banks.
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As part of ongoing repayments, MTN Nigeria disclosed on February 28 that it had received ₦32 billion out of ₦72 billion from banks to settle part of the USSD debt.
With this new airtime billing model, the NCC aims to create transparency, ensure service sustainability, and reduce friction between telecom operators and financial institutions.
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