Union Bank and First City Monument Bank (FCMB) have announced that, starting July 1 and July 2, 2025, respectively, USSD banking charges will be deducted directly from customers’ airtime balances rather than their bank accounts. This change complies with a Nigerian Communications Commission (NCC) directive adopting the end-user billing model for USSD services, streamlining payment processes by removing banks as intermediaries.
Union Bank informed customers via email in June, stating that each 120-second USSD session will incur a N6.98 charge, billed by mobile network operators. Customers must consent to the deduction at the start of each session, with the option to use alternative digital platforms like mobile apps or internet banking to avoid fees. FCMB communicated the change through text messages, confirming the N6.98 airtime deduction effective July 2, also requiring user consent.
The shift follows complaints from mobile operators, who reported that banks collected USSD fees without remitting over N200 billion in service costs by the end of 2024. The NCC’s model enables telcos to directly bill subscribers’ airtime, ensuring transparency and efficiency. Union Bank and FCMB are among several Nigerian banks adopting this framework, reflecting a broader trend in the financial sector to optimize digital transaction processes.
This change may impact customers reliant on USSD for banking, particularly those without access to robust internet services. Both banks encourage exploring digital alternatives to manage transactions cost-effectively. As Nigeria’s financial landscape evolves, the move underscores efforts to balance technological advancements with equitable service delivery, though it may pose challenges for users with limited airtime or digital access.
