Mobile Money Just Got Pricier — New USSD Charge Model Angers Users
Byline: IDNN Economy Desk
Lagos — A wave of confusion and anger has hit Nigerian mobile banking users after commercial banks rolled out a new debit model where USSD charges are now deducted directly from users’ airtime balances, rather than their bank accounts.
The move affects customers making transactions via USSD shortcodes like *737#, *901#, and others widely used for:
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Account transfers
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Airtime/data top-up
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Bill payments
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Balance checks and mini statements
“I had ₦300 in my account but couldn’t complete a transfer. MTN said I had no airtime. This is theft,” one customer lamented on X.
What Changed — and Why Now?
Previously, USSD transaction fees were debited from customer bank accounts. But banks say this created technical bottlenecks and reconciliation issues with mobile network operators (MNOs).
Under the new model:
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USSD fees (₦6.98 per session) are now deducted from telecom airtime
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No airtime? The transaction won’t go through
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No consent? It doesn’t matter — the change is automatic
The shift comes after long-standing disagreements between banks and telcos over revenue-sharing and unpaid USSD fees — reportedly over ₦100 billion in dispute.
Regulators Stay Silent — NCC and CBN Yet to Clarify Position
Neither the Central Bank of Nigeria (CBN) nor the Nigerian Communications Commission (NCC) has issued a public statement clarifying if the model has official approval — or what options exist for consumers.
“We’re watching the situation closely,” said a CBN insider, “but telcos have argued this model reduces fraud and improves traceability.”
Consumer Groups: “This Hurts the Poor the Most”
Civil society organizations and fintech analysts say the new USSD charge structure:
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Discriminates against low-income Nigerians who depend on airtime-based banking
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Will likely push users away from formal channels and toward cash-based systems
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Lacks transparency and user consent
“This is a digital tax on the poor — plain and simple,” said the Nigerian Consumer Protection Forum.
🔍 IDNN DIGITAL FINANCE ANALYSIS
Who Pays to Stay Online? Nigeria’s USSD Crisis Highlights a Broken Financial Inclusion Model
👉 The USSD Catch-22:
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Telcos want guaranteed income
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Banks want low transaction costs
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Consumers are caught — and charged — in between
👉 What Needs Fixing:
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Create zero-rated USSD channels for basic transactions
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Implement transaction caps for airtime-based deductions
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Launch public campaigns to clarify charges and consent rights
🗣️ Bottom Line: If financial inclusion is the goal, you don’t punish the very people who depend on it most.