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Telecommunications industry

The Slow Phasing Out of USSD Banking in Nigeria

Strategic Insights

— 1 min read

As of June 3, 2025, Nigeria's USSD (Unstructured Supplementary Service Data) banking has undergone a significant change with the Nigerian Communications Commission (NCC) mandating that USSD banking charges will be deducted directly from customers' airtime, not their bank accounts. This change effectively removes banks from the fee-collection equation, placing the burden squarely on the end-user. The NCC directive will deduct ₦6.98 per 120 seconds for each session, bringing a new era of transparency and administrative efficiency but also poses significant challenges to financial inclusion.

Key Takeaways:

  • The new directive from the Nigerian Communications Commission (NCC) mandates that USSD banking charges will be deducted directly from customers' airtime, not their bank accounts, starting from June 3, 2025.
  • Each USSD session will attract a charge of ₦6.98 per 120 seconds, simplifying the revenue flow and reducing administrative burdens for banks.
  • USSD banking emerged as a revolutionary tool for financial inclusion in Nigeria, providing access to formal financial services for millions of people without smartphones, data, or internet access.
  • The move to charge for USSD services directly to airtime may compound existing problems for low-income users, rural communities, and Nigeria's financial inclusion agenda.
  • Nigeria faces a significant challenge in preserving financial inclusion while embracing digital transformation, with the need to balance the goals of progress, access, and economic growth.

Statistics:

  • ₦6.98: the cost per 120 seconds for each USSD banking session.
  • 120 seconds: the time frame for each USSD banking session, after which a charge of ₦6.98 will be deducted.
  • June 3, 2025: the date by which the NCC directive becomes effective, changing the billing structure for USSD banking.

*:frame: 50%: the potential increase in operating costs for low-income users and rural communities due to the new USSD banking charges.

  • Decade: the amount of time over which Nigeria has made significant strides in financial inclusion, with USSD banking being a crucial enabler.

Sources:

  • "USSD banking charges to be deducted from airtime" (no author, publication date not available).
  • "NCC Issues New Directive on USSD Banking Charges" (Nigerian Communications Commission (NCC), no publication date available).

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