The Nigerian Communications Commission (NCC) has directed that, effective June 3, 2025, charges for Unstructured Supplementary Service Data (USSD) banking services will no longer be deducted from customers’ bank accounts, marking a major shift in how Nigerians access digital financial services.
In a regulatory move with far-reaching implications for mobile banking users, the telecoms regulator introduces an End-User Billing (EUB) model, replacing the corporate billing structure that has been in place since 2020.
Under the new model, subscribers will pay directly from their mobile airtime when they use USSD codes for banking and other services. This is in line with the NCC’s newly released “Determination of USSD Pricing and Services”, which states that previous directives on USSD pricing are now void, the telecoms regulator says.
Under the new model, subscribers will pay directly from their mobile airtime when they use USSD codes for banking and other services. This is in line with the NCC’s newly released “Determination of USSD Pricing and Services”, which states that previous directives on USSD pricing are now void, the telecoms regulator says.
NCC: Every USSD session will attract a flat rate of ₦6.98 per 120 seconds
“This Determination shall take effect from 3rd June 2025. Upon the commencement of this Determination, all prior Determinations relating to the pricing of USSD services in Nigeria shall cease to have any legal effect,” the NCC states.
The change follows years of unresolved billing disputes between Mobile Network Operators (MNOs) and Financial Service Providers (FSPs), including commercial banks. Under the outgoing model, banks deducted USSD fees from customers’ accounts and remitted the charges to telcos—often leading to friction over payments and service suspension threats.
From June 3, every USSD session will attract a flat rate of ₦6.98 per 120 seconds, charged from users’ mobile airtime. This replaces the previous rate of ₦1.63 per 20 seconds, which often confused consumers due to split-session billing.
The NCC explains that the new model aims to increase billing transparency, strengthen user control, and enhance trust in USSD-based financial services. It also serves the Commission’s broader objective of deepening financial inclusion in Nigeria’s digital economy.
“MNOs are permitted to deduct USSD charges from their subscribers’ airtime upon the use of USSD codes for banking and other transactions at the rates specified,” the NCC states.
From June 3, every USSD session will attract a flat rate of ₦6.98 per 120 seconds, charged from users’ mobile airtime. This replaces the previous rate of ₦1.63 per 20 seconds, which often confused consumers due to split-session billing.
In line with consumer protection guidelines, the NCC says that banks are now mandated to notify their customers of the billing change and the option to discontinue USSD banking if desired. Likewise, telecoms operators must obtain users’ consent before charging airtime for USSD use.
Importantly, the telecoms regulator adds, only banks in ‘good financial standing’ with the NCC will be allowed to adopt the new end-user billing model. Those that fail to meet this requirement must continue with the corporate billing model, pending compliance.
The Commission says the policy shift is part of ongoing reforms to remove technical and financial bottlenecks in Nigeria’s growing digital services ecosystem.
“The USSD channel remains a veritable platform for deepening financial inclusion in Nigeria. Customer billing for USSD services should be more transparent, and consumers should be empowered to choose what services to access and how to pay for such services,” according to the NCC.
The telecoms watchdog expects the new billing system to improve service quality, restore billing integrity, and promote trust among mobile users who rely on USSD for everyday banking and other digital transactions across Nigeria.
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