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Following the threat issues by telecom operators to severe USSD services to financial institutions, and subsequent parley by key stakeholders of both the telecom and financial service sectors, Mobile Network Operators (MNOs) and Deposit Money Banks (DMBs) have agreed to peg charges for USSD services for financial transactions conducted at DMBs and all CBN-licensed institutions at a flat fee of N6.98k per transaction. The new rate starts today, March 16.
This 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.
Mobile Network Operators (MNOs) and Deposit Money Banks (DMBs) have had protracted disagreements concerning the appropriate Unstructured Supplementary Service Data (USSD) or short code service pricing model for financial transactions. This resulted in the accumulation of outstanding fees for USSD services rendered leading to threat of service withdrawal by the MNOs.
A statement jointly signed by the Director, Public Affairs at the NCC, Dr. Ikechukwu Adinde and the Head, Corporate Communications of the CBN, Osita Nwasinobi explained: “USSD is a critical channel for delivering financial services, particularly for the underserved and/or financially excluded. To resolve the lingering dispute and ensure uninterrupted services to customers on this channel, the Honourable Minister for Communications and Digital Economy on March 15, 2021 chaired a meeting of key stakeholders to discuss an amicable resolution in the interest of the general public. Represented at the meeting were the various MNOs, Association of Licensed Telecommunications Operators of Nigeria (ALTON), Association of Telecommunications Companies of Nigeria (ATCON), DMBs (represented by the Chairman, Body of Bank CEOs) and the sector regulators – Central Bank of Nigeria (CBN) and Nigerian Communications Commission (NCC). “
To address the lingering imbroglio, the meeting came up with a resolution framework acceptable to all parties.
According to the statement, the parties agreed that to promote transparency in its administration, the new USSD charges will be collected on behalf of MNOs directly from customers’ bank accounts, and banks shall not impose additional charges on customers for use of the USSD channel.
It further stated that 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.
Other agreements by the stakeholders include:
- That 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 (APIs) to enable seamless, direct and transparent customer billing.
- That DMBs and MNOs are committed to engaging further on strategies to lower cost and enhance access to financial services.
- That With the resolutions, the impending suspension of DMBs from the USSD channel will be halted. Therefore, DMBs shall no longer be disconnected from the USSD channel.
The joint statement further reminded the public that the USSD channel is optional, as several alternative channels may such as mobile apps, internet banking and ATMs may be used for financial transactions. It also noted that the CBN and NCC will continue to engage relevant operators and stakeholders to promote cheaper, seamless access to mobile and financial services for all Nigerians.
