NEW SERVICE FEE FOR USSD TRANSACTIONS- CBN

 By: Nanah Hauwa Isah

"We are pleased to announce that after comprehensive deliberations on the key issues, a resolution framework acceptable to all parties was agreed"

The Central Bank of Nigeria (CBN) and Nigeria Communications Commission (NCC) have intervened in the long time disagreement between the Deposit Money Banks (DMBs) and the Mobile Network Operators (MNOs) leading to the introduction of  new charges for customers using the Unstructured Supplementary Service Data (USSD) services.

In a bid to put an end to this dispute, the two regulatory bodies have introduced a new flat fee of #6.98 per transaction which is cheaper to the current per session billing structure.

This was mentioned in a meeting held on the 15th of march, 2021 chaired by the Honorable Minister of Communications and Digital Economy Dr Isah Pantami and other key stakeholders over a disagreement prompted by concern for 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 mobile network operators.

The joint statement stated that the new charges was part of the resolution reached at the meeting adding  that a settlement plan for outstanding payments incurred for USSD services, previously rendered by mobile network operators was being worked out by all parties.

The CBN therefore concluded in agreement with all other parties that:

"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".

"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".

"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 statement reiterated that "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".

The CBN and NCC also reassured that they shall "continue to engage relevant operators and all stakeholders to promote cheaper, seamless access to mobile and financial services for all Nigerian".

The statement was jointly signed by the CBN Acting Director, Corporate Communications, Osita Nwanisobi; and Director, Public Affairs, Nigerian Communications Commission, Ikechukwu Adinde on Tuesday.