Effective June 3, 2025, customers of Deposit Money Banks (DMBs) in Nigeria will begin paying for USSD banking transactions through their mobile airtime instead of their bank accounts.
This change follows a directive from the Nigerian Communications Commission (NCC) mandating the implementation of the End-User Billing (EUB) model—a framework proposed years ago to improve transparency in USSD payment processes.
According to notices sent by United Bank for Africa (UBA) and First City Monument Bank (FCMB), users will now be charged #6.98 per 120 seconds for every USSD session. This fee will be billed by mobile network operators and deducted only after user consent is given at the start of each session.
Key Highlights:
💳 Bank accounts will no longer be charged for USSD transactions.
📱 Airtime deduction only happens after user approval.
💰 Fee per USSD session: #6.98/120 seconds.
❌ Customers unwilling to proceed under the new model can opt out of USSD services.
✅ Alternative digital channels such as mobile apps, ATMs, and internet banking remain available.
Why This Matters:
This policy shift aims to resolve the #250 billion USSD debt crisis that has plagued relationships between banks and telecom operators for years. Previously, banks deducted USSD fees from customer accounts but often failed to remit the charges to telecom providers, causing growing tensions.
In recent months:
The CBN and NCC intervened, mandating a resolution to the debt standoff.
The NCC threatened to suspend USSD services and named nine defaulting banks.
MTN Nigeria confirmed receiving #32 billion out of #72 billion owed by banks as of February 2025.
This development is expected to foster greater accountability, reduce friction between telecoms and banks, and ensure a more transparent billing structure for customers.
Credits: Nairametrics
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