The Central Bank of Nigeria (CBN) has said the latest dispute between telecommunications companies and banks is not fees related but technical definitions of what constitutes a successful transaction by the two parties.
Many banks’ USSD channels had been down during the weekend suggesting another dispute between banks and telcos. CBN in a statement by its acting director, Corporate Communicaions, Dr Abdulmumin Isa said the dispute on remittance of fees had been settled in 2021.
According to him, the apex bank through the direct intervention of the CBN Governor, Godwin Emefiele in March 2021, had settled the fees dispute between the banks and telcos. He said, “A per session price of N6.98 (including to settle any outstanding fees) was agreed upon between the banks and telcos. As far as we are aware, since 2021, DMBs continue to collect the USSD fees and remit same on behalf of the telcos based on that agreement.
“We understand the latest dispute concerns technical issues regarding definition of a successful transaction from a bank and telco perspective. The CBN is very much aware of the protracted dispute between the banks and telcos and has been engaging all stakeholders to ensure amicable resolution.
“USSD fees are charged by DMBs using an automated system which bills the customer for a successful transaction only after a banking service is consumed. For the Telcos, a successful transaction happens once the customer has dialled the USSD short-code which may not lead to the consummation of a banking service.’’
“Whilst Such truncated transactions are not registered on the DMBs collection platform and thus not billed to bank customers, telcos expect the DMBs to charge customers once the short-code is dialed, whether or not a financial transaction is consummated.
“At a recent meeting of the DMBs & Telvo representatives chaired by the Governor, CBN to resolve the issue, he acknowledged the telcos right to collect all legitimately earned fees due to them and to recover their cost.
“Following discussion the direct billing model was proposed as a lasting solution to the issue. This would enable telcos full visibility of USSD transactions and allow them to charge their customers directly. The feasibility of the model is still being worked out by the relevant stakeholders.
USSD is a critical channel leveraged on primarily by the financially excluded, vulnerable and critical mass. The CBN remains committed to ensuring that the areas of contention related to collection of telco charges for USSD are resolved in the interest of the financial system and overall economy.
