Govt, public react as telecoms operators announce plan to charge for USSD bank transactions; what this means for consumers

Starting from Monday, MTN Nigeria and other Mobile Network Operators (MNO) will commence a N4 per 20 seconds charges on bank transactions via Unstructured Supplementary Service Data (USSD) codes.

Several networks have sent out SMS notifying its subscribers of the new charge.

“Yello, as requested by your bank, from Oct 21, we will start charging you directly for USSD access to banking services. Please contact your bank for more info.

“Yello, please note that from Oct 21, we will charge N4 per 20 seconds for USSD access to banking services. Thank you.”

Deposit Money Banks (DMBs) may not be unaware of the development as the message suggested.

This means every time you try to purchase airtime or make funds transfer via the USSD code of your bank, your mobile network operator will charge you N4 for every 20 seconds you spend using the medium.

The development has since seen Nigerians lamenting on social media.

READ ALSO: Nigeria secures another $3 billion World Bank loan

In a counter development, the Minister of Communications, Isa Pantami has ordered the suspension of the planned charges on USSD transactions.

In a statement signed by the spokesperson for the minister, Uwa Suleiman stated that the minister wasn’t informed of the development and as such directed the Nigerian Communications Commission (NCC) to ensure operators suspend the plan until the minister is fully briefed.

“The office of the Honourable Minister of Communications, Dr Isa Ali Ibrahim Pantami is unaware of this development and has hereby directed the sector regulator, the Nigerian Communications Commission (NCC) ensures the operator suspends such plans until the Honourable Minister is fully and properly briefed,” the statement reads.

If implemented, it will hamper the Central Bank of Nigeria’s (CBN) financial inclusion plan to reach an inclusion of 80% by 2020. Already, Nigerians are already rattled by the apex bank’s cashless policy that sees an individual pay 2 and 3 per cent for deposit and withdrawal in excess of N500,000 and 3 and 5 per cent for corporates for deposit and withdrawal in excess of N3 million.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now