The Nigerian Communications Commission (NCC) has directed deposit money banks (DMBs) in the country to stop deducting charges for unstructured supplementary service data (USSD) transactions directly from customers’ bank accounts.

The telecom regulator said the charges should now be deducted directly from users’ mobile airtime so that it would be credited to telecom operators. 

Though NCC did not respond to enquiry to confirm this development, an email from one of the banks, the United Bank for Africa (UBA) to customers on Tuesday, confirmed this development. 

The UBA said the directive takes effect from June 3 (yesterday).

“In line with the directive of the Nigerian Communications Commission (NCC), please be informed that effective June 3, 2025, charges for USSD banking services will no longer be deducted from your bank account,” the statement reads.

“Going forward, these charges will be deducted directly from your mobile airtime balance in accordance with the NCC’s End-User Billing (EUB) 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.”

The bank said customers can continue using other digital banking options and internet banking platforms for convenience.

Also, First City Monument Bank (FCMB) also announced this change in an email message to customers.

“Each USSD session will cost N6.98 per 120 seconds, charged by your mobile network. You will be asked to approve the charge before it’s deducted from your airtime. If you prefer, you can use other banking channels like ATMs, mobile apps, or Internet banking,” the bank stated.

NCC’s acting director of public affairs, Mrs Nnena Ukoha did not respond to our reporter’s enquiry as at the time of filing this report. 

But the commission had been meeting since February with players in the financial sector to settle the USSD debt crisis. 

A telecom right activist, Chief Deolu Ogunbanjo, expressed fear that banks would still be charging telecom subscribers from their accounts. 

Ogunbanjo, who is the president of National Association of Telecommunications Subscribers of Nigeria (NATCOMS) said Nigerian telecom subscribers would resist any attempt to double charge them for the USSD service. 

It would be recalled that in December 2024, the Central Bank of Nigeria (CBN) and the NCC directed mobile network operators (MNOs) and DMBs to resolve the long-standing N250 billion USSD debt.

Following threats by telcos to withdraw services over the debt accumulated by banks, the NCC, in January, threatened to suspend the USSD service and publish a list of banks still owing telcos.

On January 15, the regulator directed telcos to disconnect the USSD codes assigned to nine banks by January 27 due to unpaid debts.

On February 28, MTN Nigeria said it received N32 billion — out of N72 billion — from banks as part of payment for the USSD debt.