Millions of Nigerian Bank Customers Hit by USSD Disruptions Amid New Airtime Billing Rule
By Aboki Forex —
Millions of Nigerians are facing widespread disruptions to USSD banking services across major commercial banks, leaving customers unable to complete transfers even when they have sufficient funds in their accounts.
The disruptions have affected customers of First Bank of Nigeria, Access Bank, United Bank for Africa, First City Monument Bank and Stanbic IBTC Bank. Retail customers, traders and Point of Sale operators who rely heavily on USSD banking for daily transactions are confused and frustrated.
New airtime requirement causes failed transactions
Industry insiders say the disruption is tied to a major overhaul of Nigeria’s USSD payment system and stricter anti-fraud measures. Under the new arrangement, successful USSD banking transactions now depend on the availability of airtime on the phone number linked to the account, not just money in the bank.
Previously, banks deducted USSD charges directly from customers’ bank balances before settling telecom operators separately. That framework has been replaced with an End-User Billing system. Under the new model, customers are charged N6.98 for every 120-second USSD session, with the fee deducted directly from mobile airtime.
Customers with little or no airtime on their SIM cards may be unable to complete transfers, regardless of how much money they have in their bank accounts.
A bank official at an FCMB branch in Lagos explained that many customers are still struggling because the industry is migrating to an entirely new billing structure. At a First Bank branch in Oshodi, an official said a USSD transaction would automatically fail if the linked mobile line had no airtime.
Stricter fraud checks add to delays
Industry sources say tighter security measures introduced by regulators are also contributing to transaction delays and disruptions. The Central Bank of Nigeria and the Nigerian Communications Commission recently strengthened collaboration to combat SIM swap fraud and identity theft linked to bank accounts.
Regulators introduced the Telecom Identity Risk Management Portal, which allows banks to verify whether a customer’s SIM card has been swapped, recycled or flagged for suspicious activity before approving transactions. The Nigeria Inter-Bank Settlement System has also tightened rules guiding phone number changes linked to Bank Verification Numbers, limiting such modifications to one update in a lifetime.
Industry experts say the tougher checks are aimed at protecting customers from increasingly sophisticated electronic fraud schemes.
Small businesses and POS operators hit hard
The sudden changes have triggered complaints across Lagos and other parts of the country, especially among Nigerians who depend on USSD services due to poor internet connectivity or lack of smartphones. Several customers expressed frustration that banks and telecom operators failed to adequately educate users before implementing the changes.
A POS operator, Aderonke Adebayo, said customers now regularly complain about unsuccessful transfers, creating tension between service providers and users. Repeated transfer failures are leading to delayed payments, missed business opportunities and growing distrust in digital banking channels.
The impact is particularly severe in Nigeria’s informal economy, where USSD banking remains one of the fastest and most accessible payment methods.
Broader cost concerns
The development comes amid broader changes in Nigeria’s digital banking ecosystem. The Federal Government recently implemented a 7.5 per cent Value Added Tax on certain digital service charges, including USSD fees. Although regulators clarified that the VAT applies only to service charges and not transferred funds, many Nigerians fear that the growing number of deductions could make banking transactions more expensive.
The latest reforms also follow the resolution of a long-running dispute between banks and telecom operators over unpaid USSD debts estimated at nearly N300bn. Telecom operators had warned that the mounting debt threatened the sustainability of both the telecom sector and Nigeria’s digital financial system.
With millions depending on USSD banking daily, customers are now calling for urgent intervention from regulators and financial institutions to restore smooth transactions and improve public awareness about the new system.