Union Bank and First City Monument Bank (FCMB) have commenced charging customers for USSD transactions involving airtime purchases, marking a significant shift in the cost structure of mobile banking services.
Effective this week, customers using USSD codes to recharge their mobile phone airtime via these banks will incur fees, a move confirmed in separate notices to account holders.
“In line with regulatory guidelines and operational costs, we are introducing a nominal charge on USSD transactions for airtime top-ups,” said an FCMB spokesperson. “This ensures the sustainability of convenient banking services for our customers.”
Customer Reactions Mixed
The new charges have elicited mixed reactions from customers, many of whom rely on USSD as a cost-effective way to manage mobile transactions, especially in areas with limited internet access.
“It’s frustrating because USSD has always been free and easy,” said Adetola Ogunleye, a Lagos-based customer. “Now, every small airtime purchase will cost extra.”
Industry watchers say the move aligns with the Central Bank of Nigeria’s (CBN) recent push for banks to monetize digital channels amid rising operational costs.
Banks Adjust to Regulatory Environment
The introduction of USSD charges follows the CBN’s decision to regulate USSD fees, allowing banks to charge for transactions previously offered free as telecom companies withdraw subsidies.
Union Bank’s Chief Digital Officer, Emeka Okonkwo, noted, “This adjustment is necessary to maintain and improve the quality of USSD services and infrastructure for our customers nationwide.”
What This Means for Mobile Banking
Experts warn that while the charges may be small per transaction, frequent users could see their costs add up, potentially pushing more consumers to alternative platforms such as mobile apps or internet banking.
Mobile network operators, meanwhile, have welcomed the development, as it helps clarify the cost-sharing framework for USSD services.
Union Bank and FCMB customers are advised to review their transaction costs carefully and explore other digital banking options where applicable.
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