FCMB & Unions Banks Commence Airtime USSD Charges

Customers of Union Bank and First City Monument Bank have been notified that, as of Tuesday, July 1st, and Wednesday, July 2nd, USSD banking charges will no longer be deducted from their bank accounts but rather from airtime.

Union Bank informed its clients via email that the action was in compliance with a Nigerian Communications Commission mandate.

In addition to sending its customers an email in June, FCMB also texted its customers to let them know that the charges will start on Wednesday. 

Union Bank and FCMB have joined an increasing number of lenders who have switched to the NCC’s end-user billing model for USSD banking as a result of this notice. With the new approach, banks no longer have to act as middlemen in the payment process because telecoms may now take USSD service fees straight out of subscribers’ airtime accounts.

Despite receiving over N200 billion in services by the end of 2024, cell operators reportedly complained that banks were collecting service fees from clients without sending the money to them, according to the PUNCH.

“Under this new billing structure, each USSD session will attract a charge of N6.98 per 120 seconds, which your mobile network operator will bill,” Union Bank stated in an email outlining the new model. Each session will begin with a consent prompt, and airtime will only be taken out if you agree and the bank is able to provide this service.

“You can choose other digital banking options, like our mobile app and internet banking platform, if you do not want to continue using USSD banking under this new model.”

“Dear Customer, effective July 2, the N6.98 USSD fee will be deducted from your airtime balance and no longer from your bank account. Consent will be requested,” stated the message that FCMB delivered to its customers and a consent request will be made.

Only these two banks have so far shared this message with their customers, but we all are waiting for news from other banks that will follow suit.