Banks now deduct N6.98 for USSD transaction

Deposit Money Banks (DMBs) on Friday commenced the implementation of a new charge of N6.98 on customers using the unstructured supplementary service data (USSD) payment channels.

The flat fee of N6.98 per transaction replaces the N4.89 session billing structure being charged before now.

MTN Nigeria confirmed the implementation of the plan, saying the deductions commenced on June 3.

“Effective 3rd June, 2021, each USSD banking transaction will attract a charge of N6.98 exclusive of VAT for use of the USSD banking channel. The money will be deducted from your bank, by your bank,” the teleco tweeted in response to an inquiry.

The implementation of the new billing structure is coming more than two months after mobile network operators (MNOs) announced plan to suspend USSD services over N42bn debt owed by financial service providers.

The suspension of the service was halted following intervention of Minister of Communications and Digital Economy, Isa Pantami.

The MNOs and DMBs agreed to reduce the charge on customers following the minister’s intervention.

In March, a joint statement released by the Central Bank of Nigeria and the Nigerian Communications Commission said the new N6.98 per transaction would provide a cheaper average cost for customers and enhance financial inclusion.

“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,” the statement said.

It also stated, “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.

“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.”