Deposit money banks (DMBs) are about to start the implementation of a new billing model for Unstructured Supplementary Service Data (USSD) transactions. According to notifications sent to customers by banks like UBA and FCMB, charges for USSD services will no longer be deducted from customer bank accounts. Instead, they will now be drawn directly from mobile airtime balances, in line with what the banks describe as a directive from the Nigerian Communications Commission (NCC).
Effective June 3, 2025, this change introduces the End-User Billing (EUB) model, which places the responsibility for payment directly on users via their telecom service. While the NCC itself has not issued a public announcement, several banks have communicated the policy to their customers, attributing the update to NCC guidance.
Related story: Banks, Telcos consider USSD Fees to Be Taken from Airtime Instead of Bank Accounts
How the New Billing Model Works
Under the new system, each USSD session will attract a charge of ₦6.98 per 120 seconds, deducted from the user’s mobile airtime by their mobile network operator. Before each session begins, users will receive a prompt to approve the charge. Airtime will only be deducted if the user consents and the bank is available to complete the transaction.
UBA’s customer email explained:
“Charges for USSD banking services will no longer be deducted from your bank account. Going forward, these charges will be deducted directly from your mobile airtime balance in accordance with the NCC’s End-User Billing model.”
Similarly, FCMB advised customers that they can still use alternative banking channels such as mobile apps, ATMs, and internet banking platforms if they prefer not to use the USSD service under the new terms.
Background: Unresolved USSD Debt Crisis
This transition comes on the heels of a long-standing conflict between mobile network operators (MNOs) and banks over unpaid USSD fees. At its peak in 2024, the debt was estimated at ₦250 billion, creating friction within the financial and telecom sectors.
In response to telcos’ threats to cut off USSD services, the Central Bank of Nigeria (CBN) and the NCC intervened in December 2024, mandating both parties to resolve the impasse. Tensions escalated in January 2025 when the NCC directed telcos to disconnect USSD short codes assigned to nine banks due to continued non-payment.
While there was partial progress in February — with MTN Nigeria confirming it had received ₦32 billion out of ₦72 billion owed by the banks — the broader settlement challenges persisted. Moving to direct end-user billing appears to be the workaround adopted by banks and telcos to break the deadlock and ensure telcos are compensated without relying on intermediary remittances.
Implications for Users
For customers, this change means airtime is now essential for conducting USSD transactions. The shift introduces greater transparency, as users will be clearly prompted to approve charges at the start of each session. However, it also presents potential hurdles for lower-income users who may not consistently maintain sufficient airtime balances.
This could unintentionally limit financial access for rural and low-income users who rely heavily on USSD due to limited access to smartphones or internet banking. On the other hand, it may encourage more tech-savvy users to migrate to cost-free mobile banking apps and internet-based platforms.
Restoring Trust and Clarity
Although the NCC has not directly addressed the public regarding the implementation, banks referencing its directive suggests institutional alignment in solving the debt and billing ambiguity plaguing USSD banking. The new model repositions telcos to be directly remunerated and places billing control into the hands of end users.
In a rapidly evolving financial ecosystem, where digital access is paramount, this transition could pave the way for more equitable and sustainable partnerships between banks and telecom providers—so long as user affordability and access are not compromised.
