Unveiling the concealed expenses of USSD: Nigerians' financial losses due to unsuccessful bank transactions

In a significant shift, telecom operators in Nigeria began deducting charges for USSD transactions from customers' airtime as of June 18, 2025, marking the end of banks covering these costs. However, this change has led to a series of concerns, with many customers experiencing failed transactions and unexpected debits.

The National Vice President of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), Mr. Yusuf Adeyemo, has expressed concern that these failed transactions are threatening financial inclusion in the country. Adeyemi notes that affordability is the cornerstone of financial inclusion, and when it becomes unaffordable to carry out financial transactions, people get discouraged.

One such affected individual is Chinyere, a petty trader in Lagos, who experienced repeated failed transactions using her bank's USSD code for a transfer of N5,000. Each failed transaction resulted in a deduction of N6.98 from her account, and in some cases, she was charged twice without receiving any value.

Elvis Eromosele, the Editor of TheNumbersNG, corroborated Adeyemi's concerns, stating that telcos must accept blame for failed USSD transactions and debits. Eromosele suggested that the USSD charge should only apply after the transaction is successfully completed and called for telcos to auto-refund airtime where a session fails or terminates prematurely.

However, Engr. Gbenga Adebayo, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), argued that telcos cannot be blamed for failed USSD transactions as they only deliver the customers to the bank's infrastructure. He stated that multiple deductions of N6.98 for unsuccessful transactions have become hidden costs for several bank customers.

A bank official, speaking anonymously, acknowledged issues leading to failed transactions but emphasized that the banks have invested in tech infrastructure to ensure seamless services. A source at the NCC stated that the Commission has received reports on the development and would soon come out with modalities to address the issue.

Eromosele also noted the need for a comprehensive public awareness initiative to educate users on the new billing system and how to seek redress. He suggested the creation of user-friendly, time-bound dispute resolution platforms by telcos for customers to report and resolve airtime deductions for failed transactions.

Adebayo proposed a more radical solution, likening banks to a bank that fails to provide an ATM with money. He argued that banks should be blamed for incomplete services and should be responsible for refunding funds deducted during failed USSD transactions, as they handle the customer's account and transaction processing.

The migration to end-user billing follows the Determination of USSD Pricing and Services issued by the NCC, which was developed in collaboration with the Central Bank of Nigeria (CBN) and other key stakeholders. As the situation continues to unfold, it is clear that addressing these concerns is crucial to maintaining trust in the digital financial services sector in Nigeria.

Unveiling the concealed expenses of USSD: Nigerians' financial losses due to unsuccessful bank transactions