CBN, NCC Okay N6.98 Per USSD Service For Customers

• As stakeholders float 6-point agenda, new pricing regime to settle debt

BY CHINYERE OBIORA, LAGOS – Determined to check future indebtedness and disruption of Unstructured Supplementary Service Data (USSD) services channel to bank customers in Nigeria, customers will henceforth pay a flat rate of N6.98 per transaction.

This new regime, which replaces the current per session billing structure, is meant to ensure a much cheaper average cost for customers while enhancing financial inclusion and transparency.

Additionally, the approach will ensure the amount remains the same, regardless of the number of sessions per transaction

This is part of a six-point agenda unveiled by key stakeholders to drive the process of settling outstanding N42 billion debt hanging over the sector.

By the outcome of the stakeholders’ meeting that featured key Federal Government agencies and top players in the nation’s telecommunications sector, the new charges effectively came into force on Tuesday, March 16, 2021.

They also agreed to promote greater transparency and openness within the USSD as a critical channel for delivering financial services, particularly for the underserved and/or financially excluded.

With looming threat of potential service withdrawal by Mobile Network Operators (MNOs), the meeting was specifically convened to amicably resolve disagreements between MNOs and Deposit Money Banks (DMBs) over appropriate USSD pricing model for financial transactions.

Chaired by the Minister for Communications and Digital Economy, Dr, Isa Pantami, the meeting was attended by the sector regulators, Central Bank of Nigeria (CBN) and Nigerian Communications Commission (NCC) as well as representatives of the various MNOS, Association of Licensed Telecoms Operators of Nigeria (ALTON), and DMBs, represented by the Chairman, Body of Bank Chief Executive Officers (CEOs).

And going forward, it was also agreed that CBN and NCC, as the sector’s regulators, should not relent in their continuous engagement of “relevant operators and all stakeholders to promote cheaper, seamless access to mobile and financial services for all Nigerians.”

A joint statement signed by CBN Acting Director Communications, Osita Nwanisobi and Director, Public Affairs of NCC, Dr Ikechukwu Adinde, further outlined measures taken to end the lingering disagreements and ensure uninterrupted services to customers across the country.

The statement read; “We are pleased to announce that after comprehensive deliberations on the key issues, a resolution framework acceptable to all parties was agreed thus: 1. Effective March 16, 2021, USSD services for financial transactions conducted at DMBs and all CBN – licensed institutions will be charged at a flat fee of N6.98 per transaction.

“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;

“2. To promote transparency in its administration, the new USSD charges will be collected on behalf of MNOs directly from customers bank accounts. Banks shall not impose additional charges on customers for use of the USSD channel; and

“3. 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.”

Additionally, the Communique said; “4. 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;

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

“6. 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.”

Accordingly, the statement said; “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.”