CBN, NCC Shift USSD Banking Charges to Airtime

New model gives Nigerian bank customers full control over USSD transaction costs, ends direct deductions from bank accounts

In a significant move aimed at improving consumer transparency and control, the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have announced the implementation of the End User Billing (EUB) Policy for USSD banking transactions across Nigeria.

The newly adopted billing model means that customers will now pay for USSD banking services directly from their airtime, a shift from the previous practice where charges were automatically deducted from bank accounts.

This policy change, jointly approved by the two regulatory bodies, follows years of disputes between deposit money banks and mobile network operators (MNOs) over USSD service debts, and it is expected to enhance customer experience, accountability, and clarity in mobile banking.

A Shift Towards Transparency

Under the former model, many customers were unaware of the charges incurred when using USSD codes for banking transactions, as deductions were made post-transaction from their bank accounts. The new EUB model introduces a more transparent system that aligns USSD charges with how users are billed for phone calls, SMS, and data usage.

With the new policy:

• Users are notified of charges at the end of each USSD session.
• Customers now have the option to opt in or out of USSD banking services.
• Banks are no longer permitted to charge customers for USSD transactions under the EUB model, only telecom operators can apply charges.

Consistent and Affordable Pricing

According to the NCC, the USSD transaction fee remains at ₦6.98 per session, with each session lasting up to 120 seconds. This rate offers better value compared to the previous ₦1.63 per 20 seconds (₦9.78 for two minutes), allowing users more time to complete transactions without rushing.

Consumer Protection Measures

To safeguard consumers during the transition, the CBN and NCC have outlined several oversight mechanisms:

• Mandatory Customer Notification: Banks are required to inform users before migrating them to the EUB model.
• Transparent Billing: MNOs must issue clear end-of-session messages detailing the charges incurred.
• Regulatory Oversight: Both the CBN and NCC will closely monitor implementation to ensure banks and telecom operators comply. Violations may attract sanctions.
• No Double Billing: Customers will not be billed twice for a single transaction. If any such incident occurs, they are advised to report to the appropriate authority.

What To Do If You Experience Challenges

• If you cannot access the USSD platform, contact your mobile service provider.
• For transaction-related issues, reach out to your bank.
• Further complaints can be directed to:
  • NCC: Toll-Free Line 622 or email ncc@ncc.gov.ng
  • CBN: Phone +234-70-0225-5226 or email contactcbn@cbn.gov.ng

Rollout Timeline

While the policy has been approved, implementation will occur on a rolling basis. Each bank is expected to notify its customers once technical integration, end-to-end testing, and formal agreements with telecom providers have been finalized.

The End User Billing model marks a major milestone in Nigeria’s digital financial ecosystem. By shifting the cost burden to airtime and eliminating hidden deductions, the policy is expected to strengthen consumer confidence in USSD banking and foster better collaboration between the banking and telecom sectors.