Union Bank, FCMB Begin Airtime Deductions for USSD Transactions

Union Bank, FCMB Begin Airtime Deductions for USSD Transactions in Line with NCC Directive

 

Naijaonpoint Media reports that Union Bank and First City Monument Bank (FCMB) have officially begun deducting charges for USSD banking services directly from customers’ airtime balances, rather than from their bank accounts. This marks a significant shift in how customers are billed for USSD transactions, following the Nigerian Communications Commission’s (NCC) directive on end-user billing.

In an email notification to customers, Union Bank explained that the change aligns with the NCC’s new billing policy, which mandates that mobile network operators, rather than banks, now handle USSD transaction charges. Likewise, FCMB sent text messages to its customers, informing them that the new billing model would commence on Wednesday, July 2, 2025.

With this update, both banks join a growing list of Nigerian financial institutions implementing the NCC’s end-user billing model. Under this arrangement, telecom operators will now deduct the ₦6.98 per 120-second session fee directly from customers’ airtime balances, removing banks from the billing process entirely.

Telecoms vs Banks Over USSD Fees

This policy shift follows years of back-and-forth between banks and telecom providers over unpaid USSD service charges. By the end of 2024, telcos claimed banks had received over ₦200 billion worth of USSD services without settling payments. Telecom operators accused banks of deducting fees from users but failing to remit corresponding payments.

How the New Process Works

Union Bank clarified that each USSD session will begin with a consent prompt, allowing users to approve the charge before any deduction is made from their airtime. The fee will apply only if the requested service is available and fulfilled by the bank.

Customers who do not wish to use USSD under the new arrangement are encouraged to explore other digital banking channels, including mobile apps and internet banking platforms, which remain fee-free in many cases.

FCMB conveyed a similar message, informing users that the ₦6.98 fee will now be deducted from their airtime starting July 2, and that user consent is required before each transaction.

What This Means for Customers

This new billing structure aims to bring greater transparency and accountability to USSD transactions, while also granting telecom companies more control over the collection of service fees.

To avoid service disruptions, customers who rely on USSD for banking are advised to maintain adequate airtime balances and expect a prompt seeking consent at the beginning of every session.

Key Points to Remember:

• Airtime, not bank accounts, will now be charged for USSD services.

• The standard ₦6.98 per 120 seconds fee still applies.

• Customers must give explicit consent at the start of each session.

• The change affects all customers of Union Bank and FCMB, starting July 1 and 2, respectively.

• Customers who prefer not to pay via airtime should consider mobile or online banking alternatives.