Nigerian banks have officially commenced deducting charges for Unstructured Supplementary Service Data (USSD) banking transactions directly from customers’ mobile airtime, following a directive from the Nigerian Communications Commission (NCC).

The new billing system, which took effect on June 3, 2025, marks a significant shift from the previous model where USSD charges were deducted from customers’ bank accounts. Under the NCC’s End-User Billing (EUB) model, each USSD session now attracts a charge of ₦6.98 per 120 seconds, billed by mobile network operators.

Several major banks, including United Bank for Africa (UBA) and First City Monument Bank (FCMB), have notified their customers about the change through email communications. The banks explained that customers will receive a consent prompt at the start of each USSD session, and airtime will only be deducted upon confirmation and availability of sufficient airtime balance.

“Going forward, these charges will be deducted directly from your mobile airtime balance in accordance with the NCC’s End-User Billing model,” UBA stated in its message to customers. “You will receive a consent prompt at the start of each session, and airtime will only be deducted upon your confirmation.”

The directive represents the latest move by the NCC to resolve the long-standing USSD payment conflict between mobile network operators (MNOs) and deposit money banks (DMBs). This dispute had reached critical levels, with telcos threatening to withdraw services over accumulated debts from banks.

The crisis escalated significantly in recent months when the Central Bank of Nigeria (CBN) and NCC jointly directed mobile network operators and banks in December 2024 to resolve the substantial N250 billion USSD debt. The NCC subsequently threatened to suspend USSD services and publish a list of defaulting banks in January.

By January 15, the regulator took decisive action, directing telcos to disconnect USSD codes assigned to nine banks by January 27 due to unpaid debts. The pressure yielded results when MTN Nigeria announced in February that it had received N32 billion out of N72 billion owed by banks as part payment for the USSD debt.

Banks have assured customers that alternative digital banking channels remain available for those who prefer not to use the new USSD billing model. Customers can continue using ATMs, mobile banking apps, and internet banking platforms for their transactions.

The implementation of the end-user billing system effectively shifts the financial responsibility for USSD services from banks to individual users, potentially resolving the payment disputes that have plagued the relationship between financial institutions and telecommunications companies.