USSD charges to be deducted from airtime, not bank accounts – NCC issues new directive

In a significant policy shift aimed at restructuring mobile banking operations, the Nigerian Communications Commission (NCC) has ordered deposit money banks (DMBs) to stop deducting USSD transaction charges from customers’ bank accounts.

According to a customer notification issued by the United Bank for Africa (UBA) on Tuesday, the new directive from the NCC mandates that all USSD-related charges will now be deducted directly from users’ mobile airtime instead of their bank balances. The policy officially took effect on June 3, 2025.

With this development, customers using USSD codes to carry out banking services—such as checking account balances, transferring funds, or purchasing airtime—must now ensure they have sufficient airtime on their mobile lines to cover the cost of these transactions.

“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,” the statement reads.

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

“Under this new billing structure, each USSD session will attract a charge of ₦6.98 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.

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

The UBA said customers can continue using other digital banking options and internet banking platform for convenience.

The latest directive may be another move by the commission to address the historical USSD payment conflict between mobile network operators (MNOs) and commercial banks.

In December 2024, the Central Bank of Nigeria (CBN) and the NCC directed mobile network operators (MNOs) and DMBs to resolve the long-standing N250 billion USSD debt.

Following threats by telcos to withdraw services over the debt accumulated by banks, the NCC, in January, threatened to suspend the USSD service and publish a list of banks still owing telcos.

On January 15, the regulator directed telcos to disconnect the USSD codes assigned to nine banks by January 27 due to unpaid debts.

On February 28, MTN Nigeria said it received N32 billion out of N72 billion from banks as part of payment for the USSD debt.