By John Umeh
The Nigerian Communications Commission (NCC) has issued a new directive requiring financial institutions to deduct Unstructured Supplementary Service Data (USSD) transaction fees directly from users’ mobile airtime balances. This move aims to simplify the payment process for USSD services, making it more convenient for mobile banking users across the country.
Previously, USSD transaction fees were deducted from customers’ bank accounts, which often led to complications such as failed transactions due to insufficient funds or delays in fee processing. By shifting the deduction to mobile airtime, the NCC seeks to create a seamless and efficient payment experience that leverages the widespread use of prepaid mobile phone services in Nigeria.
The directive mandates all banks and financial service providers to integrate this airtime deduction mechanism into their USSD platforms starting immediately. This means that whenever a customer initiates a USSD transaction — whether for checking balances, transferring funds, or paying bills — the associated service fee will automatically be subtracted from their available airtime credit.
NCC’s spokesperson emphasized that this policy will help reduce transaction failures and increase user satisfaction. “Mobile airtime is readily available and easily accessible for most Nigerians. By linking USSD fees to airtime, we anticipate fewer disruptions in service and smoother financial transactions,” the spokesperson explained.
Telecommunications operators are also expected to cooperate with banks to ensure accurate and timely deduction of fees from customers’ airtime accounts. This collaboration is critical to maintaining transparency and avoiding double billing or errors during the deduction process.
However, users are advised to keep sufficient airtime balance on their phones to avoid failed transactions due to insufficient credit for service fees. Experts also recommend checking their USSD transaction history regularly to stay informed about fees charged.
This new development aligns with NCC’s broader agenda to enhance digital financial services and promote financial inclusion through improved technology and regulatory oversight. As Nigeria’s economy increasingly adopts mobile banking and digital payments, ensuring smooth USSD operations remains a key priority for regulators and service providers alike.
The NCC has urged all stakeholders, including banks, telecom operators, and consumers, to adapt quickly to the new system to maximize its benefits.
