Nigerian telcos will begin deducting USSD charges from your airtime
With billions still unpaid, this might be telcos’ best bet at stopping the bleed.
If you’ve received a recent message from your bank about Unstructured Supplementary Service Data (USSD) charges being billed to your airtime, you’re not alone.
Starting this June, telecom operators in Nigeria will begin deducting ₦6.98 per 120-second USSD session directly from your mobile credit, instead of your bank account. It's a major shift in how one of Nigeria’s most relied-upon digital banking tools is billed, and it’s been a long time coming.
At first glance, it might feel like just another small fee, but this change wraps up a years-long tug-of-war between banks and telecoms over who should bear the cost of USSD services. Typically, whenever a customer makes use of a USSD session, the bank receives the bill and is expected to pay the telco on the customer’s behalf. But for years, telcos provided the infrastructure while banks reaped the benefits, billing customers but often failing to settle their dues with network providers.
By 2024, telcos claimed banks owed them a jaw-dropping ₦250 billion in unpaid USSD fees. Even after regulatory intervention, with the Central Bank of Nigeria (CBN) and Nigerian Communications Commission (NCC) ordering banks to pay 85% of that amount, only a portion has been settled. MTN, for example, had recovered just ₦32 billion of its ₦72 billion by early 2025.
Acquah Nana Yeboah
Now, the Nigerian Communications Commission (NCC) is stepping in again, but this time with a new model. One that gives telcos more control and transparency. With this update, users will be prompted to approve each charge, and once consent is given, the amount is immediately deducted from their airtime. No more relying on banks to settle up behind the scenes.
For telcos, this is a win. They no longer have to chase banks for payments. For users, it introduces more clarity, but also a bit of inconvenience. You’ll now need airtime to complete any USSD transaction, whether transferring money, checking a balance, or buying data.
So while telcos may celebrate this win, and banks quietly step back, the new rule is really about restoring balance, ensuring telecom operators get paid, customers know exactly when and why they’re being charged, and the USSD system doesn’t crumble under the weight of unpaid debt. Whether this update ends the long-standing friction for good or opens up new problems remains to be seen.
Emmanuel Umahi
