No More Free USSD? Union Bank, FCMB Begin Airtime Deductions

For millions of Nigerian bank customers, using USSD codes for quick banking just got more expensive and this time, the deduction isn’t from your bank account, but from your airtime balance.

Union Bank and First City Monument Bank (FCMB) have officially announced that they are switching to a new billing model that deducts USSD charges directly from users’ airtime. The change took effect on July 1 and 2, 2025, respectively.

This shift comes in response to a policy directive from the Nigerian Communications Commission (NCC), aimed at resolving long-standing disputes between banks and telecom operators over unremitted USSD service fees.

What’s changing?

Under the new structure, customers will now be charged ₦6.98 for every 120 seconds (2 minutes) of USSD usage. That charge will no longer come from your bank balance instead, your mobile airtime will take the hit.

But before any deduction is made, you’ll receive a prompt asking for your consent. The airtime deduction only happens if you agree and the bank is able to provide the service.

In simple terms, each time you dial your bank’s USSD code say *826# for FCMB or *826# for Union Bank, a pop-up will inform you about the ₦6.98 fee, and only after you confirm will the session proceed and the charge apply.

Why airtime, not account?

The move to bill customers’ airtime directly isn’t random. For years, telecom providers have raised concerns that banks were collecting USSD fees from users but not forwarding them as agreed. 

By the end of 2024, the total unpaid debt was reported to be around ₦250 billion, a staggering leap from ₦32 billion in 2019.

This created friction, resulting in service disruptions, public complaints, and strained relationships between banks and telcos. By shifting to a model where airtime is billed directly by the telecoms without banks playing middleman,  the NCC hopes to streamline the process, reduce confusion, and ensure everyone gets paid properly.

What should customers do?

If you’re not comfortable having your airtime deducted for banking transactions, both FCMB and Union Bank have recommended switching to their mobile apps or internet banking platforms. These digital options remain free to use and are increasingly user-friendly.

However, for many Nigerians especially those without smartphones or reliable internet access, USSD remains the most accessible form of digital banking. For this group, the ₦6.98 per session could begin to add up quickly.

What you should know

With more banks expected to follow suit, the new USSD billing system may become the standard across Nigeria’s banking sector in the coming months. 

While it aims to resolve telecom-bank disputes, it also shifts the cost burden more clearly onto consumers, something not everyone will be thrilled about.

Still, the NCC believes this change will bring more transparency and accountability to the USSD space, ensuring that the services people rely on daily remain available and properly funded.

For now, users are urged to pay attention to pop-up prompts during USSD sessions and monitor their airtime balances more closely. One quick transaction could cost you almost ₦7 and that’s before you even complete the transfer.