L-R: Executive Vice Chairman/CEO, Nigerian Communications Commission, Prof. Umar Garba Danbatta; Minister of Communications and Digital Economy, Dr. Isa Ali Ibrahim (Pantami), and Deputy Governor, Financial Systems Stability Directorate, Mrs. Aishah Ahmad, during a meeting convened by the Minister to resolve issues around Unstructured Supplementary Service Data (USS shortcode usage by the banks in Abuja on Monday, March 15, 2021.
The Nigerian Communications Commission (NCC) and Central Bank of Nigeria (CBN) have approved a uniform rate for unstructured supplementary service data (USSD) pricing model for financial transactions.
USSD is another messaging protocol, similar to SMS (Short Message Service), which most people use daily to send text messages. It is what financial institutions use to send messages to their customers.
The new rate was announced in a joint statement issued today, by Osita Nwanisobi, CBN’s Head, Corporate Communications and Dr. Ikechukwu Adinde, NCC’s Director of Public Affairs.
Under the newly approved rate, which takes effect today, financial transactions conducted at Deposit Money Banks (DBMS) and all CBN – licensed institutions will be charged at a flat fee of N6.98k per transaction.
This replaces the current per session billing structure, ensuring a much cheaper average cost for customers to enhance financial inclusion.
CBN and NCC believe the new approach is transparent and will ensure the amount remains the same, regardless of the number of sessions per transaction.
The statement further said 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.
It added 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.
According to the statement DMBs and MNOs are committed to engaging further on strategies to lower cost and enhance access to financial services and 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 said the CBN and NCC shall continue to engage relevant operators and stakeholders to promote cheaper, seamless access to mobile and financial services for all Nigerians.
Network Operators (MNOs) and Deposit Money Banks (DMBs) have had protracted disagreements concerning the appropriate Unstructured Supplementary Service Data USSD pricing model for financial transactions. This resulted in the accumulation of outstanding fees for USSD services rendered leading to a threat of service withdrawal by the MNOs.
The statement said 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 the Minister for Communications and Digital Economy, Dr Ali Pantam, 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).
