NCC Mandates Airtime Billing for USSD Transactions to Resolve Bank-Telco Dispute
The Nigerian Communications Commission (NCC) has issued a new directive instructing Deposit Money Banks to begin deducting USSD banking service charges directly from customers’ mobile airtime instead of their bank accounts. The directive, which took effect on June 3, 2025, was announced by United Bank for Africa (UBA) in a message to its customers. Under the new arrangement, each USSD session will cost ₦6.98 per 120 seconds, and the charges will be applied by the mobile network operator rather than the banks.
Customers will now receive a consent prompt before each USSD session begins, and airtime will only be deducted upon their confirmation and the bank’s ability to deliver the service. If a user chooses not to proceed under this billing structure, they have the option to stop using the USSD platform entirely. This move by the NCC is part of its broader plan to implement the End-User Billing model and ensure clarity in service charges.
UBA and other banks have encouraged customers to explore alternative digital banking platforms, such as mobile apps and internet banking, for continued convenience. The NCC’s latest policy also appears to be an attempt to resolve the prolonged disputes over unpaid USSD charges between commercial banks and telecom operators. The conflict had disrupted services and left customers caught in the middle.
The tension between banks and telecom operators reached a peak in late 2024 when the Central Bank of Nigeria and the NCC intervened to resolve a ₦250 billion debt crisis related to USSD services. The situation worsened when telcos threatened to suspend services due to non-payment, prompting the NCC to consider drastic measures such as public naming of defaulting banks and suspension of their USSD codes.
As of early 2025, partial payments have been made, with MTN Nigeria reporting that it had received ₦32 billion out of the ₦72 billion owed. While progress has been made, the telecom sector continues to advocate for sustainable and transparent financial arrangements to prevent further disruption and ensure the continuity of USSD banking services across Nigeria.
Source: Punch