Nigerian banks have started deducting USSD transaction charges directly

Nigerian banks have started deducting USSD transaction charges directly from their customers' airtime instead of their bank accounts.

The Nigerian Communications Commission (NCC) has instructed banks in the country to start deducting USSD transaction charges directly from customers' airtime rather than their bank accounts. This decision is in line with the NCC's implementation of the End-User Billing (EUB) model, which was proposed several years ago. Under this new model, banks like UBA and FCMB have informed their customers that each USSD session will cost N6.98 per 120 seconds, with the charge being deducted by the customer's mobile network operator.

The move is aimed at addressing the ongoing issue of USSD debt, which has caused tension between banks and telecom operators. The debt accumulated from banks' non-payment to telcos for USSD services provided to their customers has been a contentious topic, leading to threats by the NCC to suspend the service and even publish a list of defaulting banks. The CBN had previously instructed banks to resolve the N250 billion debt by the end of 2024, but the situation remained unresolved until the new billing method was introduced.

Banks have encouraged their customers to use alternative digital banking options such as mobile apps or internet banking if they do not wish to continue with USSD services under the new pricing structure. This change is expected to streamline the billing process and reduce the debt issues between banks and telecom operators. It is also intended to provide transparency and convenience to customers, as they will now receive a consent prompt before each charge is deducted from their airtime.