Telecommunications operators, yesterday, suspended planned withdrawal of Unstructured Supplementary Service Data (USSD) short code service, otherwise known as banks’ transfers from banks and other financial institutions in the country. The withdrawal was to take effect from Monday, March 15.
The suspension came as the Central Bank of Nigeria (CBN) and Nigerian Communications Commission (NCC) announced that bank customers would begin to pay N6.98 kobo per USSD transaction.
The telcos had hinged their decision to suspend USSD service on the failure of banks and other financial service providers to pay N42 billion debts incurred by banks in the last eight months through the use of the platform.
But at a meeting of stakeholders on Monday evening in Abuja by the Minister of Communications and Digital Economy, Dr. Isa Pantami, the telcos agreed to suspend service withdrawal.
At the meeting, it was agreed that effective yesterday, March 16, USSD services for financial transactions conducted at DMBs and all Central Bank of Nigeria (CBN) licensed institutions would be charged at a flat rate of N6.98 per transaction. This replaces the current per session billing structure, which is targeted at ensuring a cheaper average cost for customers to enhance financial inclusion.
The above means that there is now a flat fee per USSD session however long or whatever the number of messages making up the session. Before this new rate, a session usually last 20 seconds, meaning that for each session N4 is charged, even if the transaction is not completed or failed along the line. But in this new rate, 20 seconds session has been abolished, and no cost implication until a transaction is completed.
The new approach, according to a joint statement by the Acting Director, Corporate Communications, Central Bank of Nigeria (CBN), Osita Nwanisobi, and the Director of Public Affairs at NCC, Dr. Ikechukwu Adinde, will ensure transparency and same cost, regardless of number of sessions per transaction.
To promote transparency, according to the statement, the new USSD charges will be collected on behalf of MNOs directly from customers’ bank accounts. It pointed out that banks would not impose additional charges on customers for the use of USSD Channel.
The suspension came as the Central Bank of Nigeria (CBN) and Nigerian Communications Commission (NCC) announced that bank customers would begin to pay N6.98 kobo per USSD transaction.
The telcos had hinged their decision to suspend USSD service on the failure of banks and other financial service providers to pay N42 billion debts incurred by banks in the last eight months through the use of the platform.
But at a meeting of stakeholders on Monday evening in Abuja by the Minister of Communications and Digital Economy, Dr. Isa Pantami, the telcos agreed to suspend service withdrawal.
At the meeting, it was agreed that effective yesterday, March 16, USSD services for financial transactions conducted at DMBs and all Central Bank of Nigeria (CBN) licensed institutions would be charged at a flat rate of N6.98 per transaction. This replaces the current per session billing structure, which is targeted at ensuring a cheaper average cost for customers to enhance financial inclusion.
The above means that there is now a flat fee per USSD session however long or whatever the number of messages making up the session. Before this new rate, a session usually last 20 seconds, meaning that for each session N4 is charged, even if the transaction is not completed or failed along the line. But in this new rate, 20 seconds session has been abolished, and no cost implication until a transaction is completed.
The new approach, according to a joint statement by the Acting Director, Corporate Communications, Central Bank of Nigeria (CBN), Osita Nwanisobi, and the Director of Public Affairs at NCC, Dr. Ikechukwu Adinde, will ensure transparency and same cost, regardless of number of sessions per transaction.
To promote transparency, according to the statement, the new USSD charges will be collected on behalf of MNOs directly from customers’ bank accounts. It pointed out that banks would not impose additional charges on customers for the use of USSD Channel.
The meeting noted that all parties were working out a settlement plan for outstanding payments for the USSD services.
MNOs and DMBs are expected to discuss and agree on operational modalities for the implementation of the new USSD pricing framework, including sharing of Application Programme Interface (API) to aid seamless, direct and transparent customer billing.
The statement restated DMBs and MNOs’ commitment to strategies that 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 hereby 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 shall continue to engage relevant operators and all stakeholders to promote cheaper, seamless access to mobile and financial services for all Nigerians,” the statement read.
A source at the meeting explained that the two sectors agreed on N1.63k price and N4.50 price cap while a flat fee of N6.98k will be for the transaction.
According to the source, banks will now charge customers for the USSD transaction done on their accounts and settle the telecom operators.
He said the two parties also agreed to work together to deepen and expand digital financial inclusion of the Federal Government and come out with modalities and strategies on USSD.
-Punch