NCC directs telcos to make USSD deductions from subscribers’ airtime, upon transaction confirmation by banks
By Jeph Ajobaju, Chief Copy Editor
Bank customers are now to pay for unstructured supplementary service data (USSD) transactions from their airtime, billed directly by telecommunication operators, according to the latest directive from the Nigerian Communications Commission (NCC) confirmed by United Bank for Africa (UBA).
The charges will no longer be deducted from customers’ bank accounts, which led to N250 billion debt by banks to telcos in the past; instead, payment through airtime ensures telecom operators get to make deductions directly from airtime upon transaction confirmation from banks.
An email UBA sent to customers on Tuesday said the directive takes effect from June 3 as mandated by the NCC.
“In line with the directive of the Nigerian Communications Commission, please be informed that effective June 3, 2025, charges for USSD banking services will no longer be deducted from your bank account,” the statement disclosed.
“Going forward, these charges will be deducted directly from your mobile airtime balance in accordance with the NCC’s End-User Billing model.
“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.
“If you do not wish to continue using USSD banking under this new model, you may choose to discontinue use of the USSD channel.”
UBA advised that customers can continue using other digital banking options as well as internet banking platform for convenience.
Historical USSD payment conflict between mobile operators and banks led the Central Bank of Nigeria (CBN) and the NCC in December 2024 to direct the parties to resolve the long-standing N250 billion debt.
Following threats by telcos to withdraw services over the debt, the NCC in January threatened to suspend USSD service and publish a list of banks still owing telcos.
On January 15, the regulator directed telcos to disconnect USSD codes assigned to nine banks by January 27 due to unpaid debts. On February 28, MTN disclosed it received N32 billion out of N72 billion USSD debt owed by banks.
Telcos have repeatedly raised concerns about the USSD debt which may now be finally resolved with deductions for new transactions to be made directly from airtime by mobile operators upon confirmation by banks.
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