New USSD Billing Policy Shifts Charges to Airtime for Banking Transactions
By Patience Ikpeme
A significant change in how customers are charged for Unstructured Supplementary Service Data (USSD) banking transactions is set to be implemented, moving to an “End User Billing (EUB)” policy.
This new approach emerged from a consensus between the banking and telecommunications sectors, along with their respective regulators, the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC). The policy aims to address challenges in providing seamless USSD services and to enhance customer experience and transparency.
Under the current system, when customers use USSD for banking, most banks deduct the charge directly from their bank accounts. This often leaves customers without immediate control or clear knowledge of their spending. With the introduction of EUB, users will now pay for USSD banking sessions directly from their airtime, similar to how charges are applied for other mobile transactions like calls, SMS, and data.
This shift is designed to give customers greater clarity over their billing, allowing them to determine their spending before a USSD session and know the exact cost immediately after a transaction. It also eliminates issues related to USSD deductions from bank accounts and provides users with the flexibility to opt-in or out of using USSD services for banking transactions.
The EUB model is being introduced to improve consumer quality of experience and to give customers better control over their spending. It also aims to resolve long-standing disputes regarding USSD service debts between banks and Mobile Network Operators (MNOs). Both the CBN and NCC have approved this change.
To safeguard customer data and interests, both regulatory bodies have put several measures in place. Banks are mandated to inform customers of the switch to EUB before its implementation, allowing users to discontinue using the channel if they prefer not to pay through airtime. The charge for USSD will remain at ₦6.98 per session, with each session lasting up to 120 seconds. This provides better value compared to other transactions charged at ₦1.63 per 20-second session, offering a discount to users.
If customers experience any difficulties accessing the USSD platform, they are advised to contact their network operator. For challenges encountered while transacting on the USSD platform, customers should contact their bank directly for assistance. Both banks and telecom operators are obligated to provide support and ensure that consumers can effectively use USSD channels without issues. The NCC can be reached via their Toll-Free line at 622 or email at ncc@ncc.gov.ng, while the CBN can be contacted via phone at +234-70-0225-5226 or email at contactcbn@cbn.gov.ng.
Under both CBN and NCC regulations, banks and telecom operators are required to notify customers in the event of any downtime affecting their banking or USSD services.
The EUB model is designed to prevent double billing for the same transaction. The CBN has directed that banks must not charge for USSD transactions once a customer is on EUB; only the MNO can apply the charge, mirroring voice, SMS, and data billing. The NCC has directed MNOs to provide end-of-activity notifications detailing the exact charges. Any instance of a bank charging for USSD under the EUB model should be reported immediately to the CBN.
Regulatory oversight by both the CBN and NCC is in place to ensure compliance, with non-compliance potentially leading to regulatory sanctions. Banks and telcos are also expected to communicate clearly with consumers regarding the new fee structure, ensuring users understand they will only be charged once per transaction.
MNOs, individual banks, and their respective Value-Added Service (VAS) integrators are working towards a smooth transition to EUB. Each bank is expected to formally notify its customers once all mandatory formalities, including technical integration, end-to-end testing, and the signing of Service Level Agreements (SLAs) to guarantee superior customer experience and consumer protection, are completed. Customers will be informed by their banks of the actual commencement date once all conditions are met.
