Telecommunications companies and commercial banks in the country have commenced implementation of the N6.98 service charge for each USSD transaction.
Many users of USSD services in the country started to see a notice of the charge on their phones on Friday.
USSD is a critical channel for delivering financial services, especially for those who do not have access to physical banking infrastructure or internet services.
“Welcome to USSD Banking,” one notice said.
“Please note, a N6.98 network charge will be applied to your account for banking services on this channel.”
The decision to charge users was reached in March by the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC).
The service charge cuts across the four major telecommunication communication service providers; MTN, Airtel, Glo and 9Mobile.
The decision was part of an agreement reached with deposit money banks following a disagreement between banks and telecom firms over USSD and other text message transaction requests.
“Effective March 16, 2021, USSD services for financial transactions conducted at Deposit Money Banks, DMBs, and all CBN-licensed institutions will be charged at a flat fee of N6.98 per transaction,” a March statement signed by the CBN and NCC partly read.
The charge is expected to be withdrawn from users’ bank accounts and remitted to mobile network operators, who provide infrastructure for the service to operate. (TNG)
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