BREAKING: Banks begin deduction of ussd charges from Airtime

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Two major Nigerian banks, Union Bank and First City Monument Bank (FCMB), have announced that they will start deducting USSD banking charges from customers’ airtime balances instead of their bank accounts. The change, effective July 1st and July 2nd, is in line with a directive from the Nigerian Communications Commission (NCC).

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According to Union Bank, “Under this new billing structure, each USSD session will attract a charge of N6.98 per 120 seconds, which your mobile network operator will bill.” The bank added that customers will receive a consent prompt at the start of each session, and airtime will only be deducted upon confirmation and the bank’s availability to fulfill the service

FCMB also informed its customers of the change, stating, “Dear Customer, effective July 2, the N6.98 USSD fee will be deducted from your airtime balance and no longer from your bank account. Consent will be requested.”

The new model allows mobile operators to deduct USSD service charges directly from subscribers’ airtime balances, eliminating the role of banks as intermediaries in the payment process. This move follows complaints from mobile operators that banks were collecting service fees from customers without remitting the funds to operators.

Both banks have advised customers to opt for alternative digital banking options, such as mobile apps and internet banking platforms, if they do not wish to continue using USSD banking under the new model

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