Tag: USSD

USSD charges: How we determine service rates – NCC

The Nigerian Communications Commission (NCC) has disclosed how telecoms service tariffs and rates are determined for mobile network providers in the country.

TheNewsGuru.com (TNG) reports Executive Vice-Chairman (EVC) of NCC, Dr Aminu Maida made the disclosure during an interactive session with technology reporters in Abuja on Thursday.

Dr Maida disclosed that telecoms service rates are determined through comprehensive cost study to analyse the actual costs of providing a service.

Maida said the NCC played a crucial role in regulating the telecom sector, ensuring that rates charged by service providers were fair and cost-oriented.

“Rates were not simply pulled out of thin air. Instead, the commission conducts a comprehensive cost study to analyse the actual costs of providing a service,” he said.

According to him, by analysing these costs, the commission can determine a fair and reasonable rate for services such as USSD charges.

“You are asking about the rates, specifically the N6.98 Unstructured Supplementary Service Data (USSD) deduction from airtime recharge. Where did we get this figure from? Did we just pull it out of thin air?

“What we normally do at NCC is conduct a cost study before allowing anyone to charge a particular rate. This means we analyse how much it costs to provide the service.

“We have done this for USSD charges and are currently conducting a comprehensive cost study. Once completed, we will issue a determination based on all relevant factors.

“This approach ensures that charges imposed are based on real costs, rather than arbitrary figures,” he said.

He said that the NCC’s cost study considered various factors, including the cost of infrastructure, maintenance, and personnel.

The EVC said that the telecom sector, which was liberalised, ensured that any charge or rates imposed were cost-oriented.

“Consumers may not directly participate in rate determination discussions, the NCC protects their interests by scrutinising the costs and justifications behind service providers’ proposed rates.

“For instance, if a provider wants to charge a certain rate for calls, they must justify the cost breakdown to us. This ensures that rates are fair and based on actual costs.

“The level of expertise required for these discussions makes it challenging for ordinary consumers to participate directly,” he said.

The clarification is coming after NCC directed deposit money banks to stop deducting charges for USSD transactions directly from customers’ accounts.

June 19, 2025
Banks begin deducting USSD charges from customers’ airtime today

Telecom subscribers in Nigeria will now be charged directly by their mobile network operators for Unstructured Supplementary Service Data (USSD) services, starting Wednesday, June 18, 2025.

This was made known in a statement signed by Mr Gbenga Adebayo, the Chairman, Association of Licensed Telecommunications Operators of Nigeria (ALTON), and the Publicity Secretary, Mr Damian Udeh.

According to Adebayo, the change is in line with the Nigerian Communications Commission’s (NCC) determination of USSD pricing and services, developed in collaboration with the Central Bank of Nigeria (CBN) and other stakeholders.

The ALTON boss said the new billing model would allow mobile network operators to charge customers directly for USSD sessions, with charges deducted from airtime balance at N6.98 per 120 seconds.

He noted that customers would receive a prompt to opt-in and approve the charge before deduction, and billing would only occur for successful sessions.

Adebayo assured that the change would not affect USSD banking services’ availability or functionality, and customers could continue using bank USSD codes with sufficient airtime.

“USSD services play a vital role in expanding access to financial services, particularly for unbanked and underbanked populations.

“However, the previous corporate billing model where banks were billed by telecom operators led to prolonged disputes over unpaid charges, service interruptions and uncertainty for customers.

“To address these challenges, the NCC’s 2025 determination introduced the End-User Billing (EUB) model, which allows mobile network operators to charge customers directly for USSD sessions.

“To achieve the implementation of the EUB model, the CBN and NCC have stipulated that only banks that meet certain regulatory and operational conditions are permitted to migrate,” he said.

Adebayo advised customers to contact their mobile network operator for access issues and banks for transaction-related issues.

“To ensure a smooth transition, we urge subcribers to follow support guidelines, alternative digital banking channels such as mobile apps, internet banking, and ATMs remain fully operational,” he said.

Adebayo reiterated ALTON’s commitment to working closely with the NCC, CBN, financial institutions, and stakeholders to ensure a seamless, equitable, and beneficial transition for all parties, especially end-users.

The new method was adopted as a result of Nigerian banks and telcos having a running battle over USSD debt.

To resolve the matter, in December 2024, the Central Bank of Nigeria (CBN) and the NCC directed mobile network operators (MNOs) and DMBs to resolve the long-standing N250 billion USSD debt.

Following threats by telcos to withdraw services over the debt accumulated by banks, the NCC, in January, threatened to suspend the USSD service and publish a list of banks still owing telcos.

On January 15, the regulator directed telcos to disconnect the USSD codes assigned to nine banks by January 27 due to unpaid debts.

On February 28, MTN Nigeria said it received N32 billion out of N72 billion from banks as part payment for the USSD debt.

GTCO begins deduction of USSD fee from airtime balance

Meanwhile, Guaranty Trust Holding Company (GTCO), says it will begin the deduction of Unstructured Supplementary Service Data (USSD fee from the airtime balance of its customers from June 18.

The bank in a message to its customers on Wednesday, said the N6.98 fee would no longer be deducted from customers’ bank account balance.

”Dear Customer, please be informed that effective June, 18, the N6.98 USSD fee will be deducted from your airtime balance, no longer from your bank account”.

The Nigerian Communications Commission (NCC) had directed deposit money banks (DMBs) to stop deducting charges for USSD transactions directly from customers’ accounts.

June 18, 2025
Telecom operators threaten to block USSD banking

Telecom operators in Nigeria have threatened to block debtor banks from accessing the Unstructured Supplementary Service Data (USSD) banking service anytime soon.

While the telecom operators did not reveal the debtor banks affected, TheNewsGuru.com (TNG) reports the telecom operators on Thursday said they are being owed in excess of N200 billion.

Chairman of the Association of Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo said this during the first telecoms stakeholders’ meeting with the Executive Vice Chairman of Nigerian Communications Commission (NCC), Dr Aminu Maida in Lagos.

Adebayo, speaking on behalf telecom operators in the country, urged the banks involved to prioritise the payment of their USSD debt, which he said had increased to N200 billion.

The ALTON Chairman said that although there had been talks on the issue but no considerable action was taken on the part of the banks.

He noted that if operators had to shutdown their services, bank customers would no longer be able to carry out transactions such as fund transfers through short codes, check bank details and account balances, among others, through their mobile phones.

Adebayo said the debt must be paid in total, noting that telcos would not hesitate to block debtor banks from accessing the service anytime soon.

“In spite of all appeals, meetings and interventions by the Ministry of Communications, Innovation and Digital Economy, Central Bank of Nigeria (CBN), and NCC, mainly during the last administration, the banks have kept mute over payment,” he said.

The Chairman added that the value of the debt would keep rising based on the foreign exchange challenges in the country.

Adebayo, who said the matter needed to be resolved as fast as possible to avoid collapse of the sector, noted that the debt was not allowing operators to further expand services.

November 16, 2023
New way to check airtime balance on your phone
Chances are you are not able to check your airtime account balance at the moment or you earlier had the challenge or maybe you were not even able to recharge airtime on your phone.

The reason is not farfetched: the Nigerian Communications Commission (NCC) recently approved unified Unstructured Supplementary Service Data (USSD) codes for all mobile networks in Nigeria.

TheNewsGuru.com (TNG) reports this to mean that prevailing USSD codes to check airtime and also recharge a phone with airtime stopped working effective 17th of May 2023.

Except for CDMA networks, the NCC released the unified USSD codes to work with all GSM networks in the country. All mobile networks in the country, including MTN, Airtel, Glo, 9mobile and the rest are all affected.

This means all mobile network services will be using the same customer care number, the same code for checking data balances, and the same code for credit recharge, etc.

The old and new harmonized shortcodes ran concurrently up till May 17 2023, when all networks started to fully implement the new codes.

Below are the unified USSD codes for all mobile networks in Nigeria:
- Call Centre: 300
- Borrow Services: *303#
- Stop Service: *305#
- Check Balance: *310#
- Credit Recharge: *311#
- Data Plan: *312#
- Data plan balance: *323#
- Share Services: *321#
- DND: 2442
- Porting services: 3232
- NIN Verification and NIN-SIM Linkage: *996#
The use of harmonised short codes is aimed at achieving uniformity in common short codes across networks. This means that the code for checking airtime balance is the same across all mobile networks for the same function, irrespective of the network a consumer uses.

The new USSD codes are essential to make life much easier for telecom consumers, as it is now easier for Nigerians to memorise single codes for services across all mobile networks.

With the new codes, the telecom consumers using the over 226 million active mobile lines in the country, can now use the same codes to access services across the networks.
May 18, 2023
Telecom operators to disconnect banks over N120bn USSD debt

Telecommunications Operators in Nigeria say they have been granted approval by the Nigerian Communications Commission (NCC) to disconnect banks over N120 billion Unstructured Supplementary Service Data (USSD) debt.

This was made known in a statement signed by Mr Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), on Friday in Lagos.

He said that Mobile Network Operators (MNOs) would disconnect banks if they failed to pay the debt owed.

Adebayo said that the approval was granted because in spite of the multi-party stakeholder efforts to resolve the situation and prevent any impact on services, banks continued to incur greater debt, without making the commensurate payments.

He said members of the public would recall that MNOs and banks had protracted disagreements concerning the appropriate USSD pricing model for financial transactions, transparency of charges, mode of collection and liability for payment of the outstanding and continuous service fees due to the MNOs.

“Due to the inability of MNOs and banks to reach an agreement on the issues, MNOs in 2021 sought to disconnect banks due to the unpaid debts which stood at N42 billion as at that time.

“However, the Minister of Communication and Digital Economy, Prof. Isa Pantami, intervened and asked the MNOs not to disconnect banks as the action will negatively impact on the digital and financial inclusion policy of the Federal Government.

“Unfortunately, the patriotic intervention of the minister and the NCC have been taken for granted by the banks, as two years after, the banks have failed to sign a final agreement,” he said.

Adebayo noted that It was pertinent to note that the contract between MNOs and banks on the use of USSDs for banking transactions was strictly commercial and MNOs were at liberty to withdraw the services if the transaction was unprofitable to them.

He noted that MNOs have invested billions of naira in expanding their systems to accommodate the USSD needs of banks over the years.

Adebayo said this had resulted in more Nigerians having access to banking services in addition to enabling banks to trim down costs by requiring less branches to service their growing customers.

He said that unfortunately, MNOs were not getting paid for their services and the debt that stood at N42 billion in 2021 had now risen to over N120 billion.

“It is obvious that the level of debt is unsustainable given the time or value of the huge cost of the continuous upgrade, operation of the systems and infrastructure dedicated to supporting USSD transactions of banks.

“In view of the foregoing, unless banks meet their debt obligations, MNOs will disconnect all banks indebted to them for USSD services rendered,” Adebayo said.

May 13, 2023
CBN unveils eNaira USSD code

The Central Bank of Nigeria (CBN) has unveiled the Unstructured Supplementary Service Data (USSD) for its eNaira to enhance financial inclusion in the country.

The CBN Governor, GodwinEmefiele said this during the inauguration of the USSD transaction code at a 5-day Northern eNaira fair, Kano 2022.

The theme of the fair is: “Implementation of eNaira Wallet Towards Job Opportunity and Economic Growth.”

The apex bank introduced the eNaira transaction code *997#, to engender financial inclusion and avail Nigerians opportunities to endless possibilities through financial services.

Emefiele, represented by the Deputy Governor Operations, Mr Folashodun Adenisi-Shonubi, described eNaira as a strategic initiative, in accordance with the bank’s mandate to preserve monetary and financial stability.

“It captured the slogan ‘Same Naira, More Possibilities’, and designed to positively impact lives of Nigerians, and transform the economy.

“The eNaira is expected to enhance inclusion, support poverty reduction, enable direct welfare disbursement to citizens, support a resilient payments ecosystem, improve availability and usability of central bank money,” he said.

He said it would also facilitate diaspora remittances, reduce the cost of processing cash, and improve efficiency of cross border payments, among others.

According to him, approximately 45 per cent Nigerians do not have bank accounts, while 35.9 per cent are excluded from formal financial services.

He, however, said that about 81 per cent of the adults population in Nigeria representing 86 million of the 106 million own mobile phones.

“In addition, there are 150 million Mobile Subscribers in Nigeria, according to NCC, June 2022.

“Therefore, eNaira seeks to leverage the huge opportunity mobile telecommunication presents, as a distribution channel for the offering of digital services to the underserved and unbanked population,” he said.

Gov Abdullahi Ganduje, represented by Alhaji Sagir Muhammad, Special Adviser on Cabinet Affairs, thanked the CBN for the unveiling of the eNaira USSD code in Kano.

He said that his administration would ensure enabling environment for businesses to thrive for the overall social and economic development of the state.

The governor said the state government would use the eNaira platform for its empowerment programmes, and urged Nigerians to utilise the opportunity, to boost their businesses.

“With this, you don’t need to go to the bank, POS operators, or have ATM card, all you need is to use the transaction code “997#,” he said

August 25, 2022
CBN to introduce USSD code to improve eNaira

The Central Bank of Nigeria (CBN), says it is set to introduce the Unstructured Supplementary (USSD) code as part of steps to improve the Central Bank Digital Currency (CBDC).

The Deputy Governor of the CBN, Kingsley Obiora, said this at the IMF African Department Speakers Series held virtually on Friday.

The series was focused on “CBDC and Private Digital Payments in Kenya and Nigeria: Challenges and Opportunities for Sub-Saharan Africa.”

Recall that the CBN inaugurated the CBDC, also known as the eNaira, on Oct. 25, 2021, aimed at making financial transactions easier and seamless for every strata of the society.

Obiora said the introduction of the USSD code became necessary to improve financial inclusion in the country and to ensure people without smartphones could still transact on the eNaira platform.

“We have made serious progress in the last seven to eight years because when the current governor resumed in 2014, one of the pillars of his vision was to significantly improve financial inclusion.

“So at the time, we were at 48 per cent of our population within the financial system and given several policies that he conceived and implemented, we are almost at 70 per cent.

“That still leaves us with about 30 per cent of our population out of the financial system and we believe the CBDC can help reduce that number even more.

“A lot of people might not have smartphones but that is essentially the next step of our improvement in the CBDC, to introduce the USSD code, so those that do not have smartphones can still transact,” Obiora said.

The CBN deputy governor said that the barrier to entry on the CBDC platform was low, which made it possible for everyone with a Bank Verification Number (BVN) to be onboarded into the eNaira platform in a few minutes.

Obiora said the value of the country’s digital payments grew from 324 billion dollars in 2008 to about 2.4 trillion dollars presently, adding that Nigerians were now used to digital payments.

”As you know, within the continent we have one of the largest Fintech companies, Futterwave, Paystack, etc, “ the apex bank boss added.

He said that the CBDC had significant benefits for Nigeria, which was why the CBN decided to introduce it.

Obiora listed the benefits to include rapid financial inclusion, reducing the cost of processing cash, enabling direct welfare payments to citizens, and reducing the informal economy.

Others are improving tax collection, boosting cross-border trade and remittances, reducing the cost and improving the efficiency of payments and just endearing economic growth in general.

He, however, listed some of the key risks to introducing the CBDC to include banking sector disintermediation, operational risks of knowing that there is non-stop service, cyber security risks, internet disruptions and financial literacy.

Obiora said that Nigeria was doing well based on a PwC report, which showed that Nigeria was number one in terms of adoption, adding that the CBN would keep growing and improving on the system.

Speaking on adopting cryptocurrency in Nigeria, the deputy governor said for now it would not become part of the country’s financial system because of the volatility that it could create for the system.

Commenting on the high cost of food and fuel in Nigeria caused by the war in Ukraine, he said that the problem was more political than economic.

According to him, we hope that world leaders will sort this out as quickly as possible because ordinary people who have no egos and did not cause this problem are the ones that are suffering the most.

“Within Nigeria what we are seeing is that farm gate food prices have either stabilised or reduced, whereas in the market it actually has increased.”

Obiora said a lot of the problems with rising food inflation were due to logistic problems and the issue of higher prices of fuel and transportation.

“We are trying to deal with that by investing a bit in a commodity exchange so that they can stabilise prices.

He said, “within the monetary policy committee, rates will be raised at least to signal that we will continue to keep an eye on inflation and stand ready to do whatever it takes to turn it around.”

According to the moderator, Mr Abebe Selassie, Director, African Department, IMF, the series is a platform where Africa’s pressing economic policy issues are discussed and organised by the IMF’s African Department.

Selassie said the series provided an opportunity for policymakers, academics, and analysts to offer their perspectives on economic and policy issues relevant to the IMF’S African constituency.

June 11, 2022
Telcos, banks commence implementation of N6.98 service charge for each USSD transaction

Telecommunications companies and commercial banks in the country have commenced implementation of the N6.98 service charge for each USSD transaction.

TheNewsGuru.com, TNG reports that many users of USSD services in the country started to see a notice of the charge on their phones on Friday.

USSD is a critical channel for delivering financial services, especially for those who do not have access to physical banking infrastructure or internet services.

“Welcome to USSD Banking,” one notice said. “Please note, a N6.98 network charge will be applied to your account for banking services on this channel.”

TNG reports that the decision to charge users was reached in March by the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC). The service charge cuts across the four major telecommunication communication service providers; MTN, Airtel, Glo and 9Mobile.

The decision was part of an agreement reached with deposit money banks following a disagreement between banks and telecom firms over USSD and other text message transaction requests.

“Effective March 16, 2021, USSD services for financial transactions conducted at DMBs (Deposit Money Banks) and all CBN-licensed institutions will be charged at a flat fee of N6.98 per transaction,” a March statement signed by the CBN and NCC partly read.

The charge is expected to be withdrawn from users’ bank accounts and remitted to mobile network operators, who provide infrastructure for the service to operate.

June 4, 2021
And the USSD load returns to the subscriber, By Okoh Aihe

By Okoh Aihe

When a significant matter of interest nearly boiled over in the telecommunications industry the other day, the stakeholders came together on a round table, perhaps minus one party, and at the end arrived on an ingenious solution which returned the load to the subscriber. How very unfortunate!

They say in my part of the world that when birds are being roasted, the hen goes around with red eyes, supposing those are the children. So, it is with Nigerian banks. They don’t kid around with the issues of money; everything must be in their vault or it is considered lost. Playing such game with the tacit support of the Central Bank, the Nigerian banks massed up a debt of N42bn in just an aspect of electronic money transaction, thus providing a voracious answer to Ola Rotimi’s question in Hopes of the Living Dead that sugar can dissolve only in their mouth.

Nearly always, matters come up in the telecommunications industry that need a deus ex machina approach for resolution. A while back, it was the forced romance between Subscriber Identification Module (SIM) and National Identification Number (NIN) decreed by the Ministry of Communications and Digital Economy, without which Nigerians will not have access to certain services in the country. The forced love which was targeted at resolving security challenges would nearly invalidate the importance of the National ID Card, the International Passport and even the Bank Verification Number (BVN). The SIM/NIN registration was the new gobbledegook from the crest of creativity and must thus be given revered reception by the ordinary mortals!

Nigerians didn’t love the forced romance. But they loved their phones, one of the few visible democratic dividends since 1999. They poured on the streets in defiance of the deadly COVID-19 to scramble for the lives of their phones, not their own lives, and drew outrage from the remaining few but bold Nigerians who can still look at government eye-to-eye and rebuke its officials for misgovernance and inconvenient decisions. Shamefaced, the registration exercise window has been extended severally, after several COVID-19 casualties that nobody would ever compute or accept, and the exercise is grinding on. What of reported fraud at the centres, of monies being collected from these desperate, and, some very poor Nigerians, whose only proof of relevance and importance, is their phones? No explanation has ever diced such contumelies. Yet, life goes on, more like a machine grinding for existence, longing for hope, which those in authority are not anxious to release, even piecemeal.

The advantaged is never happy when the yoke bearer complains. And most arrogantly they always compute that such complaints will amount to nothing. But not this time. Unable to bear the malignant yoke foisted upon them by the banks, the telecommunications service providers who supply the pipes that enable electronic money transaction through the Unstructured Supplementary Service Data (USSD), threatened to unplug their pipes by way of remonstrating the debts being owed them. The Association of Licensed Telecoms Operators in Nigeria (ALTON) who had been corralled into several meetings by the CBN in the absence of the NCC, the telecoms industry regulatory authority, raised a cry that it could not carry the debt any longer, and live to continue to serve the subscribers.

A government that claims credit for everything apart from the evil in the land, didn’t want the unfolding scandal to add to the convoluted ones already in place, and quickly called for a meeting. In attendance at the March 15, 2021, meeting called by the Minister of Communications and Digital Economy were Mobile Network Operators (MNOs), Deposit Money Banks (DMB), ALTON, Association of Telecommunications Companies of Nigeria (ATCON), the sectors regulators – NCC and CBN. Look very closely, dear friend, the subscribers that remain critical stakeholders of the industry were never represented – and there are associations where picks could have been made from.

And this is what happened. When you are absent from a meeting, oftentimes, your hair could be shaved on your behalf. Here are some of the decisions “we are pleased to announce after comprehensive deliberations …..”

“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,” the statement jointly signed by the NCC and CBN said.

The MNOs and DMBs, according to the statement, will also engage each other to work out a payment pattern for all residual debts. It’s all smiles that a knotty issue has been resolved through a collegiate effort!

For an industry with a regulator, such collegiate triumph is not salutary. July 23, 2019, the NCC released a Determination on Unstructured Supplementary Service Data (USSD) to the effect that the subscriber will have to pay for such services.

The regulator does not arrive on a Determination lightly. Determination is the result of painstaking effort, near error-free research and in fact application of local and international industry best practices in order to create a local solution. The Determination may not assuage the feelings of every party of interest but a professionally informed decision would have been taken.

After such USSD Determination, the Minister, Dr Isa Ali Pantami forced the regulator to reverse itself in August 2020, suspending the commencement of end-user billing, submitting that he was “genuinely besieged with a barrage of complaints at the attempted commencement of end-user billing by service providers.”

It would be hackneyed to say that the Minister’s intervention has no place in the Nigerian Communications Act 2003 which empowers the NCC with regulatory responsibilities. There can be no bigger proof than the collegiate decision taken recently by the industry stakeholders, which is a modification of the regulator’s initial Determination.

The subscriber must be given documented dues not based on political considerations or the massaged ego or countenances of any politician. The regulator must be allowed to live its own life, even with mistakes.

Okoh Aihe writes from Abuja

March 31, 2021
USSD: What happens to anarchy deferred?, Okoh Aihe

Okoh Aihe

On this bright Monday morning, as I put my materials together for this Wednesday column, the Minister of Communications and Digital Economy, Dr Isa Pantami, is holding a crisis meeting with the various stakeholders of the telecommunications industry in trying to ward off a USSD misunderstanding that is threatening to obscure most of the good things happening in the industry.

In an article last week, titled: USSD CODE, CBN, Banks, Telcos and the coming of anarchy, we drew attention to a troubling development in the telecommunications industry which was capable of incapacitating operations in some areas of financial transactions, and again put more pressure on the ordinary Nigerian for whom there is little prospect of redemption from a malfunctioning democratic system.

Goaded by a Central Bank whose leadership is reeling in power drunkenness, the bankers, in spite of previous Determination by the Nigerian Communications Commission on the use of Unstructured Supplementary Service Data (USSD), have refused to pay for the service, thus massing up over N42bn in debt to telecoms service providers. Add the debt to the contempt in which they were held, the operators had had enough by last week and arrived on the decision to unplug the banks from their networks by Monday.

A statement signed by Engr Gbenga Adebayo and Gbolahan Awonuga for ALTON, the industry body, titled: Withdrawal of USSD Services to Financial Service Providers due to Huge Indebtedness to Telecom Network Operators, traced the genesis of the problems and concerted efforts that were scorned by operators. While the Determination forbids the operators from charging the end-users who are the subscribers, it however requested telcos and the banks to go into negotiations and resolve all lingering issues in order to protect and sustain the financial inclusion policy of the current administration. That has not happened, prompting the telcos to tell their story.

“During this time, Mobile Network Operators (MNO’s) have continued to provide access to USSD infrastructure and our members have continued to pay all Bank charges and fees to access the Banking industries assets and customers, despite the fact that obligations due from banks to telecoms companies for USSD services has reached over Forty-Two Billion (N42B) Naira.

“ALTON members have continued to provide these services because our primary concern is that the millions of Nigerian customers who access financial services through USSD infrastructure everyday should be able to continue conducting their transactions. This was given greater importance when customers’ became further reliant on these services due to COVID movement restrictions. Unfortunately, as it has been impossible to agree on a structure for these payments with the banks that do not involve the end-user being asked to pay, the government has been forced to intervene to ensure that a sustainable cost-sharing solution is agreed, that does not disadvantage the consumer in the long-term.

“We deeply regret that we have reached a point where the withdrawal of these services has become unavoidable, however, we remain committed to working closely with the relevant Ministries and regulators to resolve this issue as quickly as possible. To minimise the disruption to customers, and with the concurrence of the Honourable Minster of Communications and Digital Economy and the Nigerian Communications Commission, on the huge debt to the Network operators; Mobile Network Operators will disconnect debtorFinancial Service Providers (FSPs) from USSD services, until the huge debt is paid,” ALTON said last week.

The ALTON statement was released on Friday morning. Within a few hours the Minister has reacted, putting the ALTON line of action on ice. “The Honourable Minister of Communications and Digital Economy, Dr Isa Ali Ibrahim Pantami, FNCS, FBCS, FIIM has directed that the impending suspension of USSD services by the Mobile Network Operators (MNOs) be put on hold. The suspension which was to take effect on Monday, 15th of March, 2021, was due to the lingering debt owed MNOs by commercial banks for the provision of USSD banking services …..,” the Minister said in statement signed by Dr Femi Adeluyi, Technical Assistant (Information Technology).

Dr Pantami also called for an urgent meeting of the various stakeholders, including the Central Bank, Telco CEOs and regulator of the telecommunications sector, the Nigerian Communications Commission (NCC). When there is trouble in the house, there has to be somebody to take the lead otherwise, there will be a descent into extreme hugger-mugger. Pantami has taken the lead and deserves our encouragement. Much like what happens in the farm. You know this story if you grew up in the village, like I did. When a snake appears from the shadows, it doesn’t matter who kills it, the man or woman. The ultimate is for the snake to be neutralised and prevent it from doing harm.

The USSD does not present a good story. Most of the people who responded to my article last week were desirous for the controversy to be resolved urgently. But since we are not in a village setting I am of the opinion that we shouldn’t let some important particles drop unnoticed.

Plus the carryover from my observations last week where the CBN was holding meetings with telcos without the NCC, is the language of communications in recent statements. ALTON says, “….and with the concurrence of the Honourable Minster of Communications and Digital Economy and the Nigerian Communications Commission…”. While the statement from the Minister’s office says: “The Honourable Minister of Communications and Digital Economy, Dr Isa Ali Ibrahim Pantami, FNCS, FBCS, FIIM has directed that the impending suspension of USSD services by the Mobile Network Operators (MNOs) be put on hold”.

Much as I appreciate the enthusiasm of the Minister and also with respect to his foresightedness, the point at issue here is that there is only one regulator for the telecommunications industry as per the contents of the Nigerian Communications Act 2003, which is the Nigerian Communications Commission (NCC). The NCC should be allowed to play lead role in regulating the industry and resolve any issues arising therefrom. While working for the health of the sector, the Minister, with his enthusiasm, should not be seen to be sowing chaos or engage in actions that can inadvertently invalidate the potency of the regulator and diminish investors’ confidence on the industry.

Okoh Aihe writes from Abuja

March 17, 2021