USSD banking charges now deducted from airtime from June 3

From June 3, USSD banking charges will be deducted directly from customers’ airtime, not bank accounts, as banks and telecoms act on an NCC directive to resolve ₦160bn debt dispute

[dropcap]U[/dropcap]SSD banking charges will now be deducted directly from customers’ airtime instead of their bank accounts, starting today, 3 June, following a directive issued by the Nigerian Communications Commission (NCC).

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The change, announced by First City Monument Bank (FCMB) in a message to customers, affects all mobile phone users who rely on Unstructured Supplementary Service Data (USSD) for banking transactions.

Under the new arrangement, each USSD session will cost ₦6.98 per 120 seconds, charged by your mobile network provider.

Customers will be prompted to approve the charge before the amount is deducted from their airtime balance.

USSD, a protocol used by GSM phones to communicate with a service provider’s server, is widely used for financial transactions, especially in areas with limited internet access.

This adjustment is part of a broader directive from the NCC aimed at resolving long-standing debt issues between banks and telecom companies,

However, a prolonged dispute between banks and telcos over who should bear the cost of USSD sessions had led to mounting debts.

As of late 2024, Nigerian banks owed telecom companies ₦160 billion in unpaid USSD fees. MTN alone claimed it was owed ₦42 billion, prompting calls from the telecom industry for a sustainable payment model.

The shift to airtime deductions is expected to not only recover outstanding debts but also ensure uninterrupted access to USSD services going forward.