In a move that marks a significant shift in Nigeria’s mobile banking ecosystem, Guaranty Trust Bank (GTBank) has announced it will begin deducting the N6.98 USSD transaction fee directly from customers’ airtime balances starting today, Wednesday, June 18, 2025.
The bank’s announcement comes in compliance with the latest directive from the Nigerian Communications Commission (NCC), issued in partnership with the Central Bank of Nigeria (CBN), which mandates that charges for Unstructured Supplementary Service Data (USSD) banking services be drawn exclusively from users’ airtime, rather than their bank accounts.
In a message sent to its customers, GTBank stated:
“Dear Customer, please be informed that effective 18 June 2025, the N6.98 USSD fee will be deducted from your airtime balance, no longer from your bank account. Thank you.”
This change aligns with the End-User Billing model recently adopted to resolve ongoing financial disputes between banks and telecommunications providers. The directive is intended to promote transparency and accountability in the payment of USSD service fees, following years of tension over debt accumulation.
Prior to this shift, banks deducted the USSD transaction fees directly from customers’ accounts but often failed to promptly remit payments to telcos for the use of their infrastructure. Telecom operators have long protested this arrangement, claiming that banks were unfairly profiting from the service while saddling telcos with the associated operating costs.
By the end of 2024, these unresolved payments had ballooned into a debt estimated at over ₦250 billion. In response, the NCC intervened by instructing banks to transition to a system where mobile subscribers bear the fee directly through their airtime—ensuring telecom providers are paid in real time and eliminating delays in settlements.
Under the updated billing system, each time a customer initiates a USSD session—for example, to transfer funds, check account balances, or pay bills—a confirmation prompt will appear stating the applicable charge. The ₦6.98 fee will be deducted only if the customer confirms the transaction and has enough airtime to cover the cost.
This change not only provides greater billing clarity for users but also protects telecom operators from bearing the brunt of unremitted service fees.
GTBank is one of several commercial banks now complying with this regulatory mandate. Others are expected to follow suit, creating a uniform billing approach across Nigeria’s digital banking landscape.
Industry observers say the move is a win-win: telecoms get compensated immediately for their infrastructure, and customers gain a transparent view of their USSD service charges, which may also help manage financial behavior, especially among low-income earners who rely on USSD banking as a cheaper alternative to mobile apps.
Reactions from customers have been mixed. While some applaud the transparency and prefer airtime deductions they can control, others worry about the affordability of these charges, especially with the rising cost of living and recent increases in mobile recharge tariffs.
Digital finance analyst, Chidi Eze, noted:
“This is an important policy correction. It strengthens the digital payments ecosystem and ensures telcos are no longer shortchanged. However, the NCC and CBN must ensure proper consumer education to prevent confusion, especially in rural communities where USSD is most popular.”
With USSD banking still playing a vital role in Nigeria’s financial inclusion efforts—particularly in areas with poor internet connectivity—the new billing model may trigger further innovations in low-cost financial services.
For now, GTBank customers are advised to keep sufficient airtime balances if they intend to continue using USSD services. Banks and mobile network operators are also expected to continue public awareness campaigns in the coming weeks to ensure a smooth transition.