Nigerian Bank Customers Decry Failed USSD Transactions, Hidden Charges, and Demand CBN Intervention
Bank customers across Nigeria are raising concerns over rising cases of failed transactions and unexplained charges on electronic banking channels, particularly the Unstructured Supplementary Service Data (USSD) platform. Many depositors allege that they are frequently debited without receiving value, a situation they describe as both frustrating and damaging to the country’s cashless policy. Traders and individuals narrated their ordeals, claiming that weekend transactions often fail without immediate reversals, leaving them stranded and unable to access essential goods or services.
USSD, a mobile banking channel designed to improve financial inclusion for Nigerians without smartphones or internet access, has now become a source of hardship for many. Customers recount multiple failed attempts to purchase goods, check balances, or transfer funds, only to be debited without value. The Consumer Protection Department of the Central Bank of Nigeria (CBN) has advised customers to report such unresolved cases, but long queues at banks on Mondays show how widespread the issue has become.
Industry experts warn that these unresolved deductions are undermining Nigeria’s financial inclusion drive. Yusuf Adeyemo, Vice President of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), explained that small charges, such as the ₦6.98 USSD fee, become “hidden costs” when repeated failed transactions occur. He stressed that such losses discourage people from using banks, pushing them back towards cash transactions and reducing confidence in the financial system.
The problem deepened after the Nigerian Communications Commission (NCC) and the CBN approved an “end-user billing” model in June, allowing telecom operators to deduct USSD charges directly from customers’ airtime. While telcos argue that banks should be held responsible for server failures, banks insist they are not collecting the money under the new model. The blame game has left millions of customers caught in the middle, struggling with lost funds and unresolved complaints.
As frustrations mount, depositors are calling for stricter regulations to protect consumers. They argue that USSD charges should only apply after successful transactions and that failed attempts must trigger automatic airtime refunds. Analysts also urge the NCC and CBN to establish a seamless dispute resolution system to restore public trust. Until then, millions of Nigerians remain at risk of financial losses from failed USSD transactions, threatening the nation’s cashless and financial inclusion goals.
Source: The sun