The Nigerian Communications Commission in furtherance of its mandate to
protect the interests of consumers and support a robust telecommunications
sector has revised its Determination on Unstructured Supplementary Service
Data (USSD) pricing published on the 23rd of July, 2019.
In a press ststement made available by Dr. Ikechukwu Adinde Director, Public Affairs, NCC, The amendment was necessitated following a protracted dispute between
Mobile Network Operators and Financial Institutions on the applicable charges
for USSD services and the method of billing. As a responsive and effective
regulatory authority, we recognize that our policies are not static and may be
modified from time to time as circumstances demand.
This is coming on the heels of a recent directive by the Hon. Minister of
Communications and Digital Economy, Dr. Isa Ali Pantami, regarding a review
of the USSD pricing by all parties involved, following a presentation made by
the Commission on the billing structure, determination of USSD pricing, current
status and the way forward.
Mobile Network Operators and Financial Institutions on the applicable charges
for USSD services and the method of billing. As a responsive and effective
regulatory authority, we recognize that our policies are not static and may be
modified from time to time as circumstances demand.
This is coming on the heels of a recent directive by the Hon. Minister of
Communications and Digital Economy, Dr. Isa Ali Pantami, regarding a review
of the USSD pricing by all parties involved, following a presentation made by
the Commission on the billing structure, determination of USSD pricing, current
status and the way forward.
Speaking during the presentation, the Minister stated that he took the decision to
suspend the commencement of end-user billing (where the consumers are
charged directly from their airtime balance for use of USSD channels as
opposed to corporate billing where the banks paid the MNOs for the use of
USSD service) because he was “genuinely besieged with a barrage of
complaints at the attempted commencement of end-user billing by service
providers.”
suspend the commencement of end-user billing (where the consumers are
charged directly from their airtime balance for use of USSD channels as
opposed to corporate billing where the banks paid the MNOs for the use of
USSD service) because he was “genuinely besieged with a barrage of
complaints at the attempted commencement of end-user billing by service
providers.”
The Minister also clarified that “USSD is a service to banks and not to the
Telecom Consumers, and as such, banks should see themselves as corporate
customers of telecom operators with a duty to pay for using the telecom
network and infrastructure, including USSD channels extended to them for
service delivery to their customers.” According to him, “Mobile Network
Operators (MNOs) have no direct relationship to bank customers, and cannot
therefore charge directly for usage of USSD channel.”
The USSD channel has evolved over time from a telco-exclusive channel used
for only telco services such as balance inquiry and recharges to a channel for the
deployment of a broad spectrum of services, including financial, insurance,
agricultural, government services and more. The use of USSD channel has
become a critical resource in the economy even more so in this era of the Covid-
19 pandemic that has witnessed a rise in reliance on digital services.
The Executive Vice Chairman of the NCC, Prof. Umar Garba Danbatta, in the
interest of the consumers and other stakeholders, has revised the Determination
previously issued by removing the Price Floor and the Cap to allow the Mobile
Network Operators and the banks negotiate rates that will be mutually beneficial
to all parties concerned.
Telecom Consumers, and as such, banks should see themselves as corporate
customers of telecom operators with a duty to pay for using the telecom
network and infrastructure, including USSD channels extended to them for
service delivery to their customers.” According to him, “Mobile Network
Operators (MNOs) have no direct relationship to bank customers, and cannot
therefore charge directly for usage of USSD channel.”
The USSD channel has evolved over time from a telco-exclusive channel used
for only telco services such as balance inquiry and recharges to a channel for the
deployment of a broad spectrum of services, including financial, insurance,
agricultural, government services and more. The use of USSD channel has
become a critical resource in the economy even more so in this era of the Covid-
19 pandemic that has witnessed a rise in reliance on digital services.
The Executive Vice Chairman of the NCC, Prof. Umar Garba Danbatta, in the
interest of the consumers and other stakeholders, has revised the Determination
previously issued by removing the Price Floor and the Cap to allow the Mobile
Network Operators and the banks negotiate rates that will be mutually beneficial
to all parties concerned.
The NCC also determined that Mobile Network Operators must not charge the
consumers directly for the use of USSD channels for financial services in the
form of end-user-billing. The transaction should be between the MNOs and the
entity to which the service is provided (i.e. Banks and Financial Institutions).
A copy of the Determination is available on the NCC’s website,
www.ncc.gov.ng.
consumers directly for the use of USSD channels for financial services in the
form of end-user-billing. The transaction should be between the MNOs and the
entity to which the service is provided (i.e. Banks and Financial Institutions).
A copy of the Determination is available on the NCC’s website,
www.ncc.gov.ng.