Effective today, June 18, 2025, the N6.98 fee for Unstructured Supplementary Service Data (USSD) banking transactions in Nigeria will be deducted from customers’ mobile airtime balances instead of their bank accounts. This significant policy shift, announced by the Nigerian Inter-Bank Settlement System (NIBSS) in collaboration with commercial banks and mobile network operators (MNOs), aims to streamline transaction processes and enhance user convenience. The change reflects ongoing efforts to balance operational costs while maintaining accessibility to digital banking services for millions of Nigerians.
The USSD platform, widely used for quick banking services such as fund transfers, bill payments and balance inquiries, has been a cornerstone of financial inclusion in Nigeria, particularly for users in rural areas or those without smartphones. Previously, the N6.98 fee—introduced in 2021 following negotiations between banks, MNOs, and the Central Bank of Nigeria (CBN)—was debited directly from customers’ bank accounts per session, sparking debates about affordability. By shifting the deduction to airtime balances, the new policy ensures that users without sufficient bank funds can still access USSD services, provided they have adequate airtime.
This adjustment addresses concerns raised by consumer advocacy groups and users on social media, where many expressed frustration over multiple deductions for failed or incomplete USSD sessions. The NIBSS has clarified that the fee remains N6.98 per transaction session, with no additional charges for airtime deductions, and banks are expected to implement robust systems to prevent erroneous debits. Major MNOs, including MTN, Airtel, Glo, and 9mobile, have upgraded their billing systems to seamlessly integrate the fee deduction process, ensuring transparency in airtime usage.
Banks such as Zenith, GTBank, Access and UBA have begun notifying customers about the change through SMS, email, and in-app messages, emphasizing that the transition will not disrupt service quality. For instance, GTBank’s notice, shared widely on X, highlighted that airtime deductions simplify fee collection and reduce the risk of failed transactions due to insufficient bank balances. Customers are advised to maintain sufficient airtime to avoid service interruptions, particularly for frequent USSD users.
The policy shift also aligns with the CBN’s broader financial inclusion goals, as USSD remains a critical tool for reaching unbanked and underbanked populations. Data from the Nigeria Communications Commission (NCC) indicates that over 70% of banking transactions in rural Nigeria are conducted via USSD, underscoring its importance. By leveraging airtime—a resource more readily available to many users—the new system reduces barriers to accessing essential banking services.
However, some challenges may arise during the transition. Posts on X have highlighted concerns about potential airtime depletion for heavy USSD users, particularly small business owners who rely on the platform for daily transactions. To mitigate this, the NIBSS and MNOs have committed to providing detailed airtime usage reports, accessible via SMS or mobile apps, to help users track deductions.
Stakeholders, including the Association of Licensed Telecommunications Operators of Nigeria (ALTON), have praised the move as a customer-centric solution. They note that airtime deductions eliminate the need for complex refund processes when bank account deductions fail, a common issue in the previous system. The CBN has also mandated banks and MNOs to conduct public awareness campaigns to educate users about the change, with radio jingles and social media ads already underway.
For customers, the transition requires minimal action beyond ensuring adequate airtime. Those using USSD codes like *737# (GTBank), *894# (First Bank), or *919# (UBA) will notice the N6.98 fee reflected in their airtime balance post-transaction, with SMS notifications confirming deductions. Users are encouraged to contact their banks or MNOs for support if discrepancies arise.
Looking ahead, the NIBSS and CBN are exploring ways to further reduce USSD fees or introduce tiered pricing based on transaction types, as suggested in recent industry consultations. While no timeline has been confirmed, these discussions signal a commitment to balancing affordability and sustainability in Nigeria’s digital banking ecosystem. For now, the airtime deduction policy marks a practical step toward enhancing user experience.
