CBN, NCC order bank customers to pay N6.98k for USSD transactions

TNT Newsline March 16, 2021 31

By SANYA ADEJOKUN, Abuja

Commencing Tuesday, bank customers using the USSD application to send money will be charged a flat rate of ₦6.98 for every transaction.

USSD is the acronym for Unstructured Supplementary Service Data.

According to a joint statement issued on Tuesday by the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission, the decision to charge the amount was arrived at during a stakeholders’ meeting chaired by Minister of Communications and Digital Economy, Dr Isa Pantami, on Monday.

It should be noted that Mobile Network Operators (MNOs) and Deposit Money Banks (DMBs), had protracted disagreements concerning the appropriate USSD pricing model for financial transactions.

This resulted in the accumulation of outstanding fees for USSD services rendered, leading to potential service withdrawal by the MNOs.

USSD is a critical channel for delivering financial services, particularly for the underserved and/or financially excluded.

Represented at the meeting were the various MNOS, Association of Licensed Telecoms Operators of Nigeria (ALTON), DMBs (represented by the Chairman, Body of Bank CEOs) and the sector regulators Central Bank of Nigeria (CBN) and Nigerian Communications Commission (NCC).

The ₦6.98 replaces the current per session billing structure, ensuring a much cheaper average cost for customers to enhance financial inclusion.

“This approach is transparent and will ensure the amount remains the same, regardless of the number of sessions per transaction.

“To promote transparency in its administration, the new USSD charges will be collected on behalf of MNOs directly from customers bank accounts.”

Based on the new arrangement, banks shall not impose additional charges on customers for use of the USSD channel.

“A settlement plan for outstanding payments incurred for USSD services, previously rendered by the MNOs, is being worked out by all parties in a bid to ensure that the matter is fully resolved.

“MNOs and DMBs shall discuss and agree on the operational modalities for the implementation of the new USSD pricing framework, including sharing of Application Programme Interface (API) to enable seamless, direct and transparent customer billing.”

“DMBs and MNOs are committed to engaging further on strategies to lower cost and enhance access to financial services.

“With the above resolutions, the impending suspension of DMBs from the USSD channel is hereby vacated.

“Therefore, DMBs shall no longer be disconnected from the USSD channel.

“The general public is reminded that the USSD channel is optional, as several alternative channels such as mobile apps, internet banking and ATMs may be used for financial transactions.”  (Nigerian Tribune)

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