Nigerian banks move USSD charges to airtime as telcos push back on unpaid debts

After years of unresolved back-and-forth between Nigerian banks and telecom operators over who should bear the cost of unstructured supplementary service data (USSD) services, the Nigerian Communications Commission (NCC) has made a final call: customers will now carry the cost directly through their airtime.

USSD banking charges, previously deducted from users’ bank accounts, will now be taken from their phone credit. The new model sets a flat rate of ₦6.98 for every 120 seconds of USSD use, billed by the customer’s mobile network.

“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,” an email sent to UBA customers on Tuesday.

Over the years, banks have relied on USSD to serve customers without data or smartphones, while telecom operators complained they weren’t being compensated for network usage. By late 2024, the total debt owed to telcos for USSD services hovered around ₦250 billion. Things got tense enough that the NCC considered publishing a list of defaulting banks and even ordered USSD services for nine banks to be shut down in January if they didn’t pay up.

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A partial settlement was reached in February when MTN reported receiving ₦32 billion, but a significant portion of the debt remained outstanding.

The banks have suggested alternatives, such as mobile apps and online banking. However, for users, especially those with low incomes and in rural areas, this means that banking will consume the same airtime they need to make calls or send texts.