Nigerian banks have agreed to a payment of the accumulated USSD service debt put at N42 billion to mobile network operators.
This agreement was reached during a meeting on Monday with the representatives of the banks, telcos, the Central Bank of Nigeria, the Nigerian Communications Commission, and the Minister of Communications and Digital Economy, Dr. Isa Pantami.
It was gathered from sources in the industry that the stakeholders in the banking and telecoms sectors agreed to put an end to end-user billing for USSD services and replace it with corporate billing.
This means that banks will now charge customers for the USSD transaction from their accounts and settle the telecom operators.
They also agreed that charging per session should be replaced with the cost of a transaction.
READ ALSO: Banks Debt To Telcos For USSD Services Rise To N42 Billion
The stakeholders settled for N1.63k floor price, N4.50 price cap, and a flat fee of N6.98k for each transaction.
The two parties also agreed to work together to deepen and expand the digital financial inclusion of the Federal Government and come out with modalities and strategies on USSD.
Both the CBN and the NCC are expected to issue a joint statement today on the expanded resolutions.
It was learnt that more details of the agreement will be shared officially today.
BizWatch Nigeria had earlier reported that the telcos announced its intention to disconnect Financial Service Providers from USSD services as from Monday until they pay their over N42billion debt.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) representing the network operators had explained that the service withdrawal became necessary due to a lack of agreement on a payment structure for USSD service with the banks.
However, Pantami halted that planned withdrawal of USSD services and called a meeting with the Central Bank of Nigeria, telecoms operators, financial institutions, and the Nigerian Communications Commission to resolve the matter.
READ ALSO: MTN, Airtel, Others Halt USSD Banking Services Over N42 Billion Debt
The telcos and Nigerian banks have been embroiled in a dispute after MTN informed its subscribers of its intention to charge N4 for 20 seconds of USSD access based on consent by banks since last year.
This was after the NCC and the MNOs reviewed the price of USSD service but the banks refused to pay the agreed rate but requested that telecom operators charge customers directly, via end-user billing, for use of the USSD channel.
This method was vehemently restricted by Nigerians when telecom operators announced plans to start charging customers, amounting to double charges because banks did not stop deducting their fees and commission.
In view of the dispute, the NCC and other stakeholders amended the applicable charges for USSD services and the method of billing, which took effect on August 1, 2020.
The new pricing stipulates that each USSD session is 20 seconds and costs N1.63 per session on the MNO network but the debt accumulated to N42 billion as the banks refused to pay the new charges.
