USSD CHARGES NOW DEDUCTED DIRECTLY BY TELECOMS, EFFECTIVE JUNE 18

In a major shift in Nigeria’s digital financial landscape, telecom operators have started directly charging customers N6.98 for every 20-second USSD (Unstructured Supplementary Service Data) session, following a directive from the Nigerian Communications Commission (NCC).

This update, which took effect on June 18, 2025, affects millions of Nigerians who rely on USSD codes for essential mobile banking, airtime top-up, and other transactions.

What’s Changing?

Previously, banks were the ones facilitating and billing for USSD transactions. Now, with the new arrangement:

Telecoms like MTN, Airtel, Glo, and 9mobile will bill users directly.

A flat rate of N6.98 will be deducted from airtime for each 20-second USSD session.

Banks will no longer deduct these fees from customer accounts.

Why the Change?

This policy emerged after prolonged disputes between banks and telecom operators over unpaid USSD service fees, which reportedly amounted to over 120 billion in debt at one point. The NCC intervened to resolve the conflict and ensure a transparent, consistent billing system.

Reactions from Stakeholders:

Telecom operators have welcomed the change, saying it allows them to sustain the infrastructure supporting USSD operations.

Some bank customers have expressed frustration, especially those who use USSD regularly for quick and offline banking, saying the new charges are excessive and come at a time of rising economic hardship.

Consumer rights groups are calling for government review or the implementation of free daily USSD limits to help low-income users.

Implications:

This move could:

Push more Nigerians toward internet-based banking apps, reducing reliance on USSD.

Affect financial inclusion, especially in rural areas where internet penetration is low.

Increase pressure on telcos to improve service quality, as users now pay directly for every session.

Official Statement:

According to the NCC:

“This billing adjustment ensures clarity for users and promotes accountability between service providers and customers.”