USSD Fee Now N6.98 As CBN, NCC Dump Per Session Billing

Bank customers will from today pay a flat fee of N6.98 kobo for all Unstructured Supplementary Service Data (USSD) transactions.

The fee will be collected  directly from customers bank accounts on behalf of Mobile Network Operators (MNOs) to promote transparency in its administration. 

In a joint statement signed by CBN Acting Director, Corporate Communications, Osita Nwanisobi and NCC Director, Public Affairs, Ikechukwu Adinde, both regulators said banks will no longer  impose additional charges on customers for use of the USSD.

The new policy  replaces the current per session billing structure, ensuring a much cheaper average cost for customers to enhance financial inclusion. The approach, they added, is transparent and will ensure the amount remains the same, regardless of the number of sessions per transaction.

They disclosed that Mobile Network Operators (MNOs) and Deposit Money Banks (DMBs) have had protracted disagreements concerning the appropriate USSD pricing model for financial transactions. 

According to them, the resulted in the accumulation of outstanding fees for USSD services rendered leading to potential service withdrawal by the MNOs. The 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 Honorable 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 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 resolution framework, which is acceptable to all parties also adopted 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 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 Automated Teller Machines (ATMs) may be used for financial transactions.

The CBN and NCC shall continue to engage relevant operators and all stakeholders to promote cheaper, seamless access to mobile and financial services for all Nigerians.