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USSD Billing: Telecom Subscribers Vow Resistance, Operators Threaten Disconnection

by Royal Ibeh
2 months ago
in Business
Telecom Subscribers
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A fresh round of controversy has erupted in Nigeria’s telecom and banking sectors following a decision by some Deposit Money Banks (DMBs) to shift the cost of Unstructured Supplementary Service Data (USSD) services to consumers, a move the National Association of Telecoms Subscribers (NATCOMS) has fiercely condemned, while telecom operators are threatening to withdraw services.

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The transition, which began on Monday, June 3, has sparked consumer outrage and institutional pushback, with stakeholders accusing banks of dodging their debt obligations to telcos and attempting to pass the financial burden onto already-strained subscribers.

In messages to their customers, banks such as First City Monument Bank (FCMB) and Stanbic IBTC announced that USSD charges would no longer be deducted from bank accounts, but directly from users’ mobile airtime, a model known as End-User Billing (EUB). Under this arrangement, each USSD session now attracts a charge of N6.98 per 120 seconds.

Reacting to the development, the National President of NATCOMS, Chief Deolu Ogunbanjo, described the move as “unacceptable and exploitative,” alleging that banks, despite owing billions of naira to telecom operators, are shifting their contractual responsibilities to subscribers.

“They have been paying all this while, and now they don’t want to pay. So, they want to increase their profitability at the expense of the ordinary Nigerian,” Ogunbanjo told LEADERSHIP in an exclusive interview.

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“The subscribers did not sign any contract with the banks to pay for USSD. The agreement was between the banks and the telcos. So why should the subscribers suffer?” he asked.

Ogunbanjo noted that NATCOMS has already escalated the matter and vowed to take further action to protect subscribers, adding that, “We trust that the Nigerian Communications Commission (NCC) will not approve this condemnable charge. But if they do, we will challenge it. This matter cannot end quietly — we will resist it.”

The role of NCC in the ongoing saga has also come under scrutiny. While banks cite NCC directives as the basis for the change in billing structure, both NATCOMS and ALTON insist that the Commission has not concluded the required framework for such a transition.

Ogunbanjo questioned NCC’s silence on the matter, saying, “Why is the NCC not speaking clearly? This is an issue affecting millions of Nigerians. If this goes unchecked, subscribers will be charged multiple times for a single transaction.”

He also hinted that NATCOMS may pursue legal action if necessary, adding that a similar battle is already being waged against the proposed 5 percent excise duty on telecom services.

Meanwhile, operators, under the aegis of the Association of Licensed Telecom Operators of Nigeria (ALTON), have expressed frustration over what it calls a premature move by the banks and warned that it may disconnect banks that forcefully implement end-user billing without clearing their debts or reaching a formal agreement on service protocols.

In a conversation with LEADERSHIP, ALTON chairman, Engr. Gbenga Adebayo, explained that although there was a regulatory intervention involving the NCC, it was agreed that banks must settle their debts based on the previous billing arrangement before any migration to end-user billing could occur.

“We are supposed to agree on a Service Level Agreement (SLA) that outlines the modalities, how customers are billed, prevention of double billing, and ensuring billing doesn’t occur from both airtime and bank accounts simultaneously. As we speak, we have not concluded on any of that.

“We were surprised to see some banks announce migration to end-user billing. That is not the agreement, and it’s misleading to suggest that the telcos and NCC have approved such a transition,” Adebayo said.

Adebayo emphasised that any bank which fails to meet its obligations would face consequences. “If the banks are going to forcefully do it, we are ready to withdraw USSD services from them. We shall seek appropriate regulatory approval to disconnect any bank flouting the agreed process.”

The changes come at a time when inflation, rising utility costs, and tax pressures have stretched consumer wallets thin. Many subscribers have expressed confusion and frustration over the abrupt shift in USSD billing, with some unsure how much they are being charged per transaction, especially when charges appear in multiple fragments during a single session.

“I got three different deductions from my airtime just to check my bank balance. Why not just send one alert with a total charge? This is exploitative and sneaky,” said a petty trader in Lagos, Funmi Olaniyan.

 


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Tags: National Association of Telecoms Subscribers (NATCOMS)Nigerian Communications Commission (NCC)
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