By Anas Abbas
Nigerian Communications Commission (NCC) has mandated that deposit money banks (DMBs) cease the direct deduction of charges from customers’ accounts.
Instead, these fees will now be deducted from users’ mobile airtime.This change, effective June 3, 2025, was communicated to customers via an email from the United Bank for Africa (UBA) on Tuesday.
The bank outlined that, in compliance with the NCC’s directive, charges for USSD banking services will no longer be taken from bank accounts but will instead be billed directly to mobile airtime.
According to the UBA’s statement, each USSD session will incur a fee of ₦6.98 for every 120 seconds, a charge that will be processed by the user’s mobile network operator.
Customers will receive a consent prompt at the beginning of each session, and airtime will only be deducted after they confirm their willingness to proceed, provided the bank is available to complete the transaction.
For those who prefer not to use USSD banking under this new billing structure, UBA has indicated that customers can opt out of this service.
Additionally, they can continue to utilize other digital banking options and internet banking platforms for their transactions.
This latest directive appears to be a strategic effort by the NCC to address the long-standing conflict surrounding USSD payments between commercial banks and mobile network operators (MNOs).
In December 2024, the Central Bank of Nigeria (CBN) and NCC had instructed MNOs and DMBs to settle an outstanding USSD debt estimated at ₦250 billion.
The situation escalated in January when telecommunications companies threatened to withdraw USSD services due to unpaid debts owed by banks.
In response, the NCC warned it would suspend USSD services and publish a list of banks that were still in arrears.
On January 15, the regulator ordered telcos to disconnect USSD codes assigned to nine banks by January 27 due to these outstanding debts.
On February 28, MTN Nigeria reported receiving ₦32 billion of the ₦72 billion owed by banks as part of the resolution of this USSD debt issue.
This recent directive marks a pivotal shift in how USSD banking services will operate in Nigeria, potentially benefiting both consumers and service providers in the long run.