NCC Orders Banks to Deduct USSD Fees from Mobile Airtime, Not Bank Accounts

The Nigerian Communications Commission (NCC) has directed deposit money banks to stop deducting USSD transaction fees from customers’ bank accounts. Going forward, these charges will now be deducted directly from users’ mobile airtime, marking a significant shift in how the service is billed.

This new billing model, which took effect on June 3, 2025, was confirmed in a communication from United Bank for Africa (UBA) to its customers on the same day. The directive aligns with the NCC’s End-User Billing (EUB) framework, which transfers responsibility for charging USSD fees from banks to mobile network operators.

According to UBA, “charges for USSD banking services will no longer be deducted from your bank account… these charges will be deducted directly from your mobile airtime balance in accordance with the NCC’s End-User Billing model.”

Each USSD session will now cost ₦6.98 per 120 seconds and will be billed by the user’s mobile network. Customers will be prompted to give consent at the beginning of each session, and charges will only apply if the user confirms and the request is successfully processed by the bank.

Customers who prefer not to use USSD services under the new model have the option to discontinue use. Alternative digital banking channels, such as mobile apps and online banking, remain available.

This policy change follows prolonged disputes between telecom operators and banks over unpaid USSD service fees. As of December 2024, banks reportedly owed telecoms around ₦250 billion in accumulated USSD debts. In January 2025, the NCC took enforcement action by ordering the disconnection of USSD codes assigned to nine banks. MTN Nigeria later confirmed in February that it had received ₦32 billion of the ₦72 billion owed by banks.

The NCC’s latest move is seen as a step toward resolving the USSD debt crisis, ensuring clarity in billing practices, and promoting a more sustainable relationship between telecom providers and financial institutions.