Guaranty Trust Holding Company, GTCO, has announced a major change in the way customers are billed for Unstructured Supplementary Service Data, USSD, transactions.
Beginning June 18, the bank said it will deduct the N6.98 USSD service charge directly from customers’ airtime balance, rather than from their bank accounts.
“Dear Customer, please be informed that effective June 18, the N6.98 USSD fee will be deducted from your airtime balance, no longer from your bank account,” the bank said in a customer notification issued on Wednesday.
This shift comes in compliance with a directive by the Nigerian Communications Commission, NCC, which mandated all deposit money banks to discontinue direct deduction of USSD fees from customers’ bank accounts.
The NCC’s order, which had been in discussion for several months, aims to resolve longstanding disagreements between telecom operators and financial institutions over who should bear the cost of USSD infrastructure.
READ ALSO: Telcos threaten USSD shutdown over banks’ misinformation
USSD services, accessed via short codes on mobile phones, are widely used by millions of Nigerians—especially those without smartphones—to perform banking transactions such as fund transfers, bill payments, and balance checks.
The N6.98 fee per session was introduced in 2021 following negotiations between the NCC, the Central Bank of Nigeria, CBN, telecom operators, and banks.
Initially, the banks were deducting the fee directly from customer accounts, but this system sparked customer dissatisfaction due to lack of transparency and inconsistencies in billing.
Telecom operators also claimed that they were not receiving full compensation for their infrastructure investment and data traffic.
The move to have fees deducted from airtime aligns with the NCC’s vision of a more transparent, consumer-centric billing structure that ensures service providers are compensated directly.
Industry stakeholders believe this development could reduce friction between banks and telecom companies, while also making users more conscious of service costs.
“This will definitely increase transparency,” said a telecom analyst, Chukwudi Nnamani. “Now, users can immediately see deductions from their airtime and track what they’re being charged for.”
However, critics warn that the new billing method may exclude low-income or rural users who often rely on small data or airtime credits for essential banking services.
The NCC has urged customers to monitor their transactions carefully and report any irregular deductions, while also encouraging banks and telecoms to provide clear and timely information.
Meanwhile, GTCO is among the first banks to publicly implement the directive, though more financial institutions are expected to follow suit in the coming days.
With over 40 million Nigerians actively using USSD banking, this billing model shift is expected to have a wide-reaching impact on daily transactions, especially among underserved and digitally excluded communities.
The NCC and CBN have promised further dialogue with all stakeholders to ensure smooth implementation and safeguard user access to mobile banking.
NAN
