Telecom companies in Nigeria have denied claims by banks that the Nigerian Communications Commission (NCC) told them to start deducting USSD banking charges from customers’ airtime instead of their bank accounts.
Many Nigerians were surprised when some banks, including UBA, FCMB, and Fidelity Bank, told their customers that starting from June 3, 2025, USSD charges would no longer come from their accounts but directly from their airtime.
But the telecom operators, under the Association of Licensed Telecommunications Operators of Nigeria (ALTON), say this is not true. They insist the NCC never gave such an instruction.
ALTON Chairman, Gbenga Adebayo said, “NCC did not direct the banks. If anyone should give that directive, it is the Central Bank of Nigeria, not the NCC.”
He added that while the telecom industry is ready for the switch, the banks have not fulfilled all the necessary conditions.
“The banks have not cleared their debts, and many are not ready with systems to handle errors or pay customers back when something goes wrong. We are shocked the banks are blaming NCC to gain public sympathy,” Adebayo said.
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According to a joint circular issued by the CBN and NCC in December 2024, banks must first settle old debts before switching to airtime billing. The plan says banks should:
- Pay 60% of old debts by January 2, 2025
- Clear all past bills by July 2, 2025
- Pay 85% of new bills by December 31, 2025
Until then, the new airtime billing method cannot fully begin.
Despite this, some banks like UBA and FCMB have already started informing customers of the change.
UBA wrote: “In line with the directive of the NCC, please be informed that effective June 3, 2025, charges for USSD banking services will no longer be deducted from your bank account.”
They said each USSD session will cost ₦6.98 per 120 seconds and will be charged by the telecom operator.
FCMB told customers they will need to approve the charge before airtime is deducted and advised them to use other options like ATMs or mobile apps if they prefer.
Some Nigerians have expressed concern. One user on X (formerly Twitter), Audu R.S., said, “Telecommunication companies won the battle for USSD charges. Banks are now indirectly telling customers to stop using USSD because they won’t gain from it.”
Another user, Akinbobola Adumasi, noted, “Customers with zero or low airtime won’t be able to use USSD at all. That’s a big problem.”
Adebayo warned that moving too quickly to the new billing system could cause confusion and “double charges,” as banks may still try to collect fees from accounts while telcos charge airtime.
“If this is not handled carefully, customers could be charged twice—once from their airtime and again from their bank accounts,” he warned.
For now, regulators have told telcos to apply the “10-second rule,” meaning customers should not be charged for USSD sessions shorter than 10 seconds.
The USSD charge issue has been a problem since 2019. Earlier this year, the NCC even threatened to disconnect nine banks, including UBA, FCMB, Fidelity, and Zenith, over unpaid debts.
Still, Adebayo said the situation is improving. “Money has been paid, and we are making progress thanks to the regulators,” he said at a forum in February 2024.
But until the banks meet all the conditions, customers may face mixed messages and confusion over how their USSD charges are handled.