The protracted disagreements between Mobile Network Operators (MNOs) and Deposit Money Banks (DMBs) over United States dollars pricing model for financial transactions have been resolved.
This has resulted in the accumulation of outstanding fees for USSD services rendered leading to threat of service withdrawal by the MNOs.
In a statement jointly signed by Head, Corporate Communications, Central Bank of Nigeria (CBN), Osita Nwanisobi and Director, Public Affairs Nigerian Communications Commission (NCC), Dr. Ikechukwu Adinde, the United States dollars 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 Minister for Communications and Digital Economy, Dr.Isa Ali Ibrahim Pantami 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).
After comprehensive deliberations on the key issues, a resolution framework acceptable to all parties was agreed that effective March 16, 2021, United States Dollar services for financial transactions conducted at DMBs 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.
Both the MNOs and DMBs noted that this approach was transparent and would 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, while Banks shall not impose additional charges on customers for use of the USSD channel.
A settlement plan for outstanding payments incurred for USSD services, previously rendered by the MNOs, according to them is being worked out by all parties in a bid to ensure that the matter is fully resolved.
MNOs and DMBs are to discuss and agree on the operational modalities for the implementation of the new United States pricing framework, including sharing of Application Programme Interface (APIs) to enable seamless, direct and transparent customer billing.
The DMBs and MNOs are said to be committed to engaging further on strategies to lower cost and enhance access to financial services.
They however explained to the public that the United States Dollar channel is optional, as several alternative channels may such as mobile apps, internet banking and ATMs be used for financial transactions.
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.
