Telecommunications companies in Nigeria recently threatened to suspend USSD services due to the failure of banks to pay for the services amounting to ₦42 million.
The withdrawal of the USSD services was to kickstart on Monday,15th March, 2021.
However, the Minister of Communications and Digital Dr. Isa Pantami, directed the telcos to halt the planned suspension while calling a meeting of all stakeholders.
Now, the NCC and CBN have agreed that the user should pay for the USSD services. The cost was put at a flat rate of ₦6.98 per transaction.
This was contained in a joint statement signed by the spokespersons of the two government institutions.
The statement reads: “USSD is a critical channel for delivering financial services particularly to the financially excluded. To resolve the lingering dispute, and ensure uninterrupted services, the Minister of 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 Telecom Operators (ALTON), Association of Telecommunications Companies of Nigeria (ATCON), Deposit Money Banks (DMB) (represented by Chairman, body of bank CEOs) and the sector regulators – Central Bank of Nigeria (CBN) and Nigeria Communications Commission (NCC). “
After comprehensive deliberations a resolution framework acceptable to all parties was reached agreed.
The statement reads further: “Effective March 16, 2021, financial transactions conducted by DMBs and all CBN-licensed institutions will be charged at a flat-fee of ₦6.98 per transaction. This replaces the current per session billing structure, ensuring a much cheaper average costs 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 the MNOs directly from customers’ bank accounts. 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.
The statement emphasized that with the resolution, the planned suspension/withdrawal of USSD services has now been vacated.
It concluded by reminding the general public that “USSD is optional as several alternative channels such as mobile apps, internet banking and ATM may be used for financial transactions.”
