NCC Introduces New USSD Billing Model, Banks Adopt Airtime Charges

In a move to enhance financial inclusion, the Nigerian Communications Commission (NCC) has introduced a new USSD billing model. This model allows customers to have their USSD banking charges deducted directly from their airtime, rather than from their bank accounts. The Unstructured Supplementary Service Data (USSD) has been a crucial banking alternative, enabling users to conduct transactions without an internet connection. This development is part of the NCC's efforts to resolve previous disputes over the N250 billion USSD debt owed by commercial banks to telecom operators.

Mobile Network Operators (MNOs) such as MTN, Airtel, Globacom, and 9mobile had previously complained that banks were collecting service fees from customers without remitting the funds to them. To address this issue, the NCC ordered commercial banks to start deducting charges for USSD transactions directly from users’ mobile airtime. This shift eliminates the role of banks as intermediaries in the payment process, allowing telecom operators to deduct USSD service charges directly from subscribers’ airtime balances.

Following the directive, several commercial banks have adopted the new airtime for USSD billing model. The United Bank for Africa, Access Bank, and EcoBank were among the first to implement the model, effective from June 3, 2025. These banks notified their customers that USSD charges would no longer be deducted from their bank accounts but directly from their mobile airtime balance. GTBank also announced that the N6.98 transaction fee would be deducted from airtime balances starting from June 18, 2025. Union Bank and First City Monument Bank (FCMB) followed suit, with Union Bank's new billing structure taking effect from July 1 and FCMB's charges commencing on July 2.

Under the new billing model, subscribers will face a new charge of ₦6.98 for every 120-second USSD session, deducted from their airtime. The service is optional, and users will receive a prompt to approve the charges before any airtime deduction is made. Upon consent, charges will not be deducted from the bank account but from the airtime. Users have the option to discontinue the service at any time and can still access banking services via other platforms such as bank mobile apps, Automated Teller Machines (ATMs), and Internet Banking Portals. The USSD code remains unchanged, and the service is fully available using the usual bank codes. Charges apply only for successful sessions, and double billing is prohibited.

This new end-user billing model represents a significant shift in how USSD banking services are charged in Nigeria. By deducting charges directly from airtime, the NCC aims to streamline the payment process and ensure that telecom operators receive their due payments. This move is expected to enhance financial inclusion by making USSD banking services more accessible to users who may not have sufficient funds in their bank accounts but have airtime on their mobile devices. The adoption of this model by major commercial banks indicates a positive response to the NCC's directive and a commitment to improving the banking experience for customers.