MTN Clarifies No New Charge For Airtime Data Purchases

MTN, a prominent telecommunications company, has clarified that airtime and data purchases will not be subject to the new N6.98 charge for Unstructured Supplementary Service Data (USSD) banking transactions. This announcement was made by Lynda Saint Nwafor, MTN’s Chief Enterprise Business Officer, during a discussion with media executives. The new billing model shifts the cost of USSD services from bank accounts to airtime accounts, ensuring that users can continue to access banking services without incurring additional charges for airtime and data purchases.

Nwafor emphasized that the primary change in the new model is the shift in billing from bank accounts to airtime accounts. She stated, “The only difference is that, from charging your bank account, the cost of USSD services will now be deducted from your account.” This clarification aims to address concerns about the potential impact on users who rely on USSD for banking services, particularly those in underserved communities.

Gbenga Adebayo, President of the Association of Licensed Telecom Operators of Nigeria, provided historical context on the evolution of USSD services in the country. Initially, USSD was charged at the rate of an SMS to deepen financial inclusion. The service quickly gained traction, with over 20 million users within the first 12 months. However, disagreements between banks and telecom operators over the cost of the service led to a payment impasse. In 2020, a joint circular issued by the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) determined that USSD should be priced at N6.98 per session. Despite this, banks continued to charge subscribers without paying operators, resulting in a debt of over 42.5 billion naira by 2024 and eroding trust between the two sectors.

The current leadership of the CBN and NCC has mandated that banks clear their historical debt before migrating to end-user billing. Adebayo reported that the debt, which stood at about N180 billion as of January this year, has been cleared up to 95%, with only three banks yet to pay up. He also noted that one of the major banks in the country, GT Bank, has been successfully migrated to the system with positive trial results, while others are in the process of being migrated. This development is seen as a significant step towards resolving the long-standing dispute and ensuring a smoother transition to the new billing model.

In line with the NCC’s End-User Billing model, the United Bank for Africa (UBA) has informed customers that charges for USSD banking services will no longer be deducted from their bank accounts but directly from their mobile airtime balance. The bank has assured customers that they will receive a consent prompt at the start of each session, and the airtime will be deducted subject to confirmation and availability of the bank’s services. This move is expected to enhance transparency and user experience, aligning with the broader industry shift towards end-user billing for USSD services.