The Nigerian Communications Commission (NCC) has issued a decisive directive to all commercial banks in the country: stop deducting USSD banking charges directly from customers’ bank accounts.
As of June 3, 2025, USSD charges are now deducted straight from users’ mobile airtime balances, not from their bank funds. This move is part of the NCC’s enforcement of the End-User Billing (EUB) model, which places billing responsibility squarely on the telecom operators rather than banks.
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Under the new structure, each USSD session will cost ₦6.98 per 120 seconds, charged by your mobile network provider—whether MTN, Airtel, Glo or 9mobile.
Before any deduction is made, customers will now receive a consent prompt at the start of every session. The charge will only apply if the customer agrees and if the bank is available to deliver the service.
Background to the Shift
This development follows a prolonged standoff between telecom providers and Nigerian banks over a staggering ₦250 billion debt arising from unpaid USSD service charges. Banks had continued to offer USSD banking using telecom infrastructure but failed to adequately reimburse the network providers.
By January 2025, the situation became so strained that the NCC threatened to suspend USSD services entirely and publish the names of defaulting banks. On 15th January, the Commission even instructed telcos to disconnect USSD services for nine banks by the end of that month.
In response to mounting pressure, MTN Nigeria revealed in February that it had received ₦32 billion as part payment from the banks, but a ₦72 billion shortfall still remained unpaid.
This new billing framework is expected to resolve the long-standing conflict by making customers responsible for USSD costs while ensuring telecom providers are paid directly.
The NCC’s move indicate a major policy shift aimed at transparency, consumer control, and industry stability, and it places the financial burden squarely on users who choose to access services via USSD—ensuring banks and telcos are no longer at odds over the cost of digital financial access.
