Union Bank, FCMB to Deduct USSD Charges from Airtime as New NCC Billing Kicks Off

• Two commercial banks in Nigeria have commenced USSD banking charges from customers' airtime instead of their bank accounts
• The two banks disclosed in separate emails to their customers that the USSD charges will commence on July 1 and 2, 2025
• They stated that the customers would be charged N6.98 per 120 seconds and would need to give consent before deductions are made

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Union Bank and First City Monument Bank (FCMB) have announced that they will commence the deduction of USSD banking charges from airtime instead of bank accounts from July 1 and 2, 2025.

In a notice by Union Bank sent to its customers’ emails, the financial institution said the move aligns with a directive from the Nigerian Communications Commission (NCC).

USSD charges: Why will the deductions begin?

FCMB, on its part, notified its customers that the new charges will commence on July 2, 2025.

The two banks have joined the growing list of financial institutions that have migrated to the NCC’s end-user billing system for USSD banking.

The new model allows telecommunication companies to deduct USSD service charges directly from subscribers’ airtime, ending the role of banks as intermediaries in the payment process.

Why charge from customers’ airtime?

A previous report by Legit.ng disclosed that the telcos had complained that financial institutions were taking charges from customers without remitting them to the operators, despite receiving over N200 billion by the end of 2024.

The development created a debacle between the telcos and the banks, leading to the disconnection of some banks from the telecoms USSD platforms.

The new billing system, which began this month, will reportedly ease tension between the banks and the telcos and USSD transactions and revenue collection.

Meanwhile, Union Bank announced that under the new billing system, each USSD will attract N6.98 per 120 seconds, stating that users’ telcos will bill them.

USSD: Will the customer be notified?

It further said that customers will receive a consent prompt at the beginning of each session, and airtime will only be charged upon the customer’s confirmation and the bank’s availability to fulfil the service.

“If you do not wish to continue using USSD banking under this new model, you may opt for alternative digital banking options, such as our mobile app and internet banking platform,” the bank stated.

Punch reports that the FCMB’s message to customers notified them that, effective July 2, the N6.98 USSD charge will be deducted from their airtime balance and no longer from their bank accounts, stating that customers will need to give consent.

Telecom operators update on banks' USSD Debt payments

Legit.ng earlier reported that the Association of Licensed Telecoms Operators of Nigeria (ALTON) provided an update on the ongoing dispute between Nigerian banks and telecom companies regarding the payment of debts for USSD services.

Speaking at a recent forum hosted by telecom operators and attended by Legit.ng, ALTON President Gbenga Adebayo expressed satisfaction that banks have been making the expected payments to resolve the issue.

It is worth noting that the USSD debt owed by banks to telecom operators grew from N32 billion in 2019 to nearly N250 billion in 2024.

Proofreading by Kola Muhammed, copy editor at Legit.ng.

Source: Legit.ng