The Nigerian Communications Commission (NCC) today announced a pivotal shift in how Unstructured Supplementary Service Data (USSD) transaction fees are charged, directing all Deposit Money Banks (DMBs) to cease direct deductions from customers’ bank accounts. Effective immediately, these charges will now be debited from users’ mobile airtime, under a new system dubbed the End-User Billing (EUB) model.
This directive means that from today, June 3, 2025, individuals using USSD codes for banking services, such as balance inquiries, money transfers, or airtime purchases, will see the associated fees deducted directly from their mobile airtime balance, rather than their bank accounts. Under the new EUB model, each USSD banking session will incur a charge of ₦6.98 for every 120 seconds (two minutes).
This fee will be billed by the user’s mobile network operator (MNO), including major players like MTN, Glo, Airtel, and 9mobile. To ensure transparency and user control, a consent prompt will appear on the phone screen at the commencement of each USSD session, with airtime only deducted upon user confirmation and the bank’s readiness to process the transaction.
This significant policy adjustment by the NCC is a strategic move to resolve a protracted financial dispute between mobile network operators and commercial banks. For years, MNOs have accumulated billions of Naira in unpaid fees from banks for the use of their USSD infrastructure to provide banking services. “This new billing model aims to bring clarity and fairness to USSD service charges, addressing the long-standing financial liabilities while empowering consumers with more direct control over how they are charged for these services,” stated a source close to the NCC, who requested anonymity given ongoing discussions with stakeholders.
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The move effectively transfers the payment responsibility for USSD services directly to the end-user, thereby compelling banks to address their outstanding obligations to telecom operators. USSD, a fundamental communication protocol, is widely utilized in Nigeria for banking, airtime top-ups, and data subscriptions, particularly benefiting individuals without smartphones or internet access.
Deposit Money Banks (DMBs) encompass all commercial banks, while Mobile Network Operators (MNOs) are the providers of mobile phone services and USSD infrastructure. The End-User Billing (EUB) model signifies that the direct user of a service is billed for its consumption. In response to the directive, banks such as United Bank for Africa (UBA) and First City Monument Bank (FCMB) have begun notifying their customers of the revised billing structure.
They are also guiding customers towards alternative digital banking options for those who prefer not to incur USSD charges from their airtime. These alternatives include mobile banking applications, internet banking accessible via websites, and traditional Automated Teller Machines (ATMs). The implementation of the End-User Billing model is poised to fundamentally reshape the landscape of mobile banking transactions across Nigeria, placing a renewed emphasis on direct user payment for the convenience afforded by USSD services.
