“Shocking Change: Your Airtime Now Funds Bank Transactions—Are You Outraged?”
USSD transaction fees changes, airtime deduction for banking, mobile banking cost updates 2025
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Breaking news: Changes to USSD Fees for Bank Transactions in Nigeria

On June 18, 2025, a significant change was announced regarding the USSD (Unstructured Supplementary Service Data) fees for bank transactions in Nigeria. The Central Bank of Nigeria (CBN) has mandated that the N6.98 fee for USSD banking transactions will now be deducted from users’ airtime balance instead of their bank accounts. This decision has sparked discussions among banking customers and stakeholders alike, marking a pivotal moment in the evolution of mobile banking services in Nigeria.

Understanding the USSD Banking System

USSD technology provides a convenient channel for customers to perform various banking transactions directly from their mobile phones without requiring internet connectivity. Users can check their account balances, transfer funds, and carry out other banking activities through simple codes. However, this service has often come with a cost, specifically the N6.98 fee associated with each transaction.

Key Changes to the Fee Structure

With the new directive from the CBN, the way users pay for USSD transactions will undergo a notable transformation. Instead of having the fee deducted directly from their bank accounts, customers will now see the transaction fee deducted from their mobile airtime balance. This change is expected to enhance user experience by providing greater control over transaction fees, allowing customers to manage their expenses more effectively.

Rationale Behind the Change

The decision to shift the deduction of USSD fees from bank accounts to airtime balances is rooted in several key factors:

1. User Convenience: By allowing fees to be deducted from airtime, customers will no longer need to worry about sufficient funds in their bank accounts when performing transactions. This change is anticipated to make banking services more accessible, particularly for those with limited banking options.
2. Financial Inclusion: The CBN aims to promote financial inclusion by simplifying the banking process for unbanked and underbanked populations. Many Nigerians rely on mobile phones for financial transactions, and this adjustment could encourage more individuals to adopt digital banking.
3. Cost Transparency: Shifting the fee to airtime provides users with clearer visibility of the costs associated with banking transactions, allowing them to make more informed decisions regarding their finances.
   

   Implications for Customers
   

   The new fee structure may have several implications for customers:

   • Easier Access: Users can perform banking transactions without the fear of incurring unexpected charges from their bank accounts. This ease of access could encourage more frequent use of USSD services.
   • Budgeting: Customers can manage their airtime more effectively and plan their banking transactions around their mobile usage. This could lead to more responsible financial behavior as users become more aware of their spending habits.
   • Potential Challenges: While there are many benefits, customers accustomed to direct bank deductions may face some challenges. For instance, users who do not frequently recharge their mobile airtime may find it difficult to carry out essential banking transactions.
     

     Stakeholder Reactions
     

     The announcement has elicited mixed reactions from various stakeholders:

   • Banking Institutions: Banks are likely to adapt quickly to this new structure. They may need to enhance their USSD services to ensure seamless transactions and maintain customer satisfaction.
   • Telecom Companies: Mobile network operators stand to benefit from increased airtime sales as customers will need to ensure they have sufficient balance to carry out banking transactions.
   • Consumers: The reaction from the public has been largely positive, with many viewing the change as a step towards more consumer-friendly banking practices.
     

     Conclusion
     

     The CBN’s decision to change the deduction method for USSD banking fees from bank accounts to airtime balances marks a significant shift in Nigeria’s banking landscape. By prioritizing user convenience and financial inclusion, this move has the potential to enhance the banking experience for millions of Nigerians.

     As customers adjust to this new fee structure, it will be essential for banks and telecom companies to collaborate effectively to ensure a smooth transition. This initiative not only aims to simplify banking transactions but also seeks to empower customers with better control over their finances.

     With these changes now in effect, it will be interesting to observe how they impact the broader landscape of digital banking and financial services in Nigeria.

BREAKING NEWS: From today 18 June 2025, the N6.98 USSD fee for bank transactions will now be deducted from your airtime balance, no longer from your bank account. pic.twitter.com/AaR8ctN5t1

— Nigeria Stories (@NigeriaStories) June 18, 2025

BREAKING NEWS: From today 18 June 2025, the N6.98 USSD fee for bank transactions will now be deducted from your airtime balance, no longer from your bank account.

In a significant change for banking customers in Nigeria, the Central Bank has announced that starting June 18, 2025, the N6.98 USSD fee for bank transactions will now be deducted from your airtime balance instead of your bank account. This news has stirred conversations across social media, with many users expressing their thoughts on the implications of this move. For those unfamiliar with USSD (Unstructured Supplementary Service Data), it’s a protocol used by mobile phones to communicate with the service provider’s computers. It’s commonly utilized for banking and mobile money transactions.

So, what does this mean for you? If you’re someone who frequently uses USSD codes for banking, this change could have a significant impact on how you manage your finances. In this article, we’ll explore the implications of this new policy, the benefits and drawbacks, and what you need to know to navigate this transition smoothly.

Understanding the N6.98 USSD Fee

The N6.98 fee has been a standard charge for USSD transactions in Nigeria for some time now. Previously, this fee was deducted directly from your bank account, which meant that you needed to ensure you had sufficient funds in your account to cover these charges. With the new policy, this fee will be deducted from your airtime balance instead, which can be a game changer for many.

This adjustment is particularly relevant for those who might not have a lot of money in their bank accounts but have a healthy airtime balance. It offers a new level of flexibility, allowing users to conduct banking transactions without worrying about their bank account balance. You can now use your airtime for banking operations, making it easier for many Nigerians who rely on mobile money services.

The Benefits of the New USSD Fee Structure

While any change can bring about uncertainty, this new fee structure has several benefits that users should be aware of. First and foremost, the ability to use your airtime for banking means that you can maintain your bank account for larger transactions while using your mobile balance for everyday banking needs. This could be particularly useful for students or those who may not always have liquid cash available in their bank accounts.

Additionally, this shift could potentially encourage more people to engage in digital banking transactions. Since airtime is often more accessible and easier to manage, individuals who may have been hesitant to use USSD banking might find it more appealing now that they’re not limited by their bank account balances.

Possible Drawbacks to Consider

However, it’s essential to consider the possible drawbacks of this change. Not everyone may be thrilled about the idea of using their airtime for banking transactions. For instance, if you typically use your phone for calls and texts, you might find that your airtime diminishes more quickly than before, especially if you’re conducting multiple transactions.

Moreover, some users may still prefer the traditional banking method of having fees deducted from their bank accounts. This allows for better tracking of expenses and can provide a clearer picture of one’s financial situation. Transitioning to a new system may pose challenges, especially for those who are less tech-savvy or familiar with USSD banking.

Staying Updated with the Changes

As with any significant policy change, it’s crucial to stay informed. Keep an eye on official announcements from your bank and the Central Bank of Nigeria for updates regarding this new fee structure. It’s also a good idea to communicate with your bank if you have concerns or questions about how this change will affect you personally.

Additionally, online resources and community forums can be valuable for sharing experiences and tips on navigating this new system. Engaging with others who are experiencing the same transition can provide insights and solutions to common challenges.

How to Prepare for the Change

To make this transition as smooth as possible, consider the following tips:

1. **Monitor Your Airtime Balance**: Since the N6.98 fee will now come from your airtime, keep a close eye on your balance. Ensure you always have enough airtime for any banking transactions you may need to perform.

2. **Familiarize Yourself with USSD Codes**: If you’re not already comfortable with USSD codes, now is the time to learn. Familiarize yourself with the codes for your bank, as well as any relevant commands to check your airtime balance and manage your account.

3. **Budget for Airtime Usage**: If you expect to conduct a lot of banking transactions, consider budgeting for additional airtime to accommodate these fees. This will help you avoid any unexpected shortages.

4. **Engage with Your Bank**: Reach out to your bank’s customer service to understand how they will handle this transition and whether there are any additional fees or changes you should be aware of.

Community Reactions to the Announcement

The announcement has generated a variety of reactions on social media platforms, particularly Twitter. Many users have expressed their excitement at the prospect of using airtime for banking transactions, viewing it as a more flexible option. Others have voiced concerns about potential issues, such as losing airtime quickly or not being able to track their banking expenses as easily.

It’s fascinating to see how the community is engaging with this news. Conversations are unfolding, and people are sharing their thoughts and experiences, making it a lively topic. If you want to join in, platforms like Twitter are buzzing with discussions about this change. You can follow the conversation using hashtags related to USSD banking in Nigeria.

The Future of Banking with USSD

This shift in how USSD fees are handled could signal a broader trend in banking practices. As mobile technology continues to evolve, we might see even more innovations in how we conduct banking transactions. For instance, we could witness enhanced security measures, faster transaction times, and even more ways to integrate mobile banking with everyday expenses.

With the rise of fintech companies, consumers are likely to have even more options at their fingertips. As banking becomes more digital and mobile-centric, understanding these changes and how they affect your financial habits will be crucial.

In summary, the change to the N6.98 USSD fee structure represents a significant shift in how banking transactions are conducted in Nigeria. While there are benefits and drawbacks to consider, being proactive and informed can help you navigate this transition effectively.

Final Thoughts

The transition to having USSD fees deducted from your airtime balance is an intriguing development in the Nigerian banking landscape. It’s designed to make banking more accessible, but it also requires users to adapt to new habits and practices. Stay informed, communicate with your bank, and engage with your community to make the most of this change.

For more detailed insights and perspectives on this topic, you can check out [Nigeria Stories](https://twitter.com/NigeriaStories). They provide ongoing updates and discussions that can help you stay informed about this and other banking changes.