Union Bank, FCMB to Deduct USSD Charges Directly from Airtime

Union Bank and First City Monument Bank (FCMB) have announced a shift in the payment method for USSD banking charges, stating that deductions will now be made directly from customers’ airtime balances rather than their bank accounts. The change takes effect from Tuesday, July 1st for Union Bank, and Wednesday, July 2nd for FCMB.

Union Bank disclosed the update via an email to customers, citing compliance with a directive from the Nigerian Communications Commission (NCC). Similarly, FCMB communicated the change through text messages sent to customers in June.

This transition aligns both banks with the NCC’s end-user billing framework, which mandates telecommunications operators to charge users directly for USSD services. The new model removes banks as intermediaries in the billing process, thereby enabling telcos to debit charges straight from subscribers’ airtime.

The PUNCH previously reported that telecom operators had raised concerns over non-remittance of USSD fees by banks, despite providing services valued at over ₦200 billion as of the end of 2024.

In its notice, Union Bank clarified the new billing terms, stating:

“Under this new billing structure, each USSD session will attract a fee of ₦6.98 per 120 seconds, which will be billed by your mobile network provider. You will receive a consent prompt at the beginning of each session, and airtime will only be deducted upon your confirmation and if the service is available.”

Customers who prefer not to use USSD banking under this model are encouraged to explore alternative digital banking channels, including Union Bank’s mobile app and internet banking platform.

FCMB’s message to its customers read:
“Dear Customer, effective July 2, the ₦6.98 USSD fee will be deducted from your airtime balance and no longer from your bank account. Consent will be requested.”

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