Telecom Operators Assure Seamless USSD Transactions Under New Billing Regime

The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Engineer Gbenga Adebayo, has assured that telecom operators will ensure that USSD transactions are seamless under the new billing regime. He noted that transaction failures could occur from the banks, stating that if there’s a failure from the network, the customer will not be billed, but if it’s from the bank, they will be billed because it is successful from the operator’s side.

In a session with media executives, Adebayo and MTN’s Chief Enterprise Business Officer, Lynda Saint Nwafor, explained the new billing model. The session addressed concerns about transparency, accountability, and the impact on financial inclusion. The service has served as a viable banking alternative for millions of users because it can work without the internet.

Adebayo envisaged an unlikely situation where users could be charged the N6.98 USSD fee twice for the same transaction: first on their airtime by the telecoms service provider and their bank balances. In such instances, he advised them to approach their banks for a refund. He emphasized that if people see a deduction from their bank account after they have been charged on their airtime, they should go to the bank. This is because the bank is not supposed to charge them for the service, which is double billing.

Saint-Nwafor stated that there is no significant impact or change other than the fact that subscribers will now pay the same N6.98 per session (120 seconds) with their airtime instead of direct bank debit. She added that the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have ordered telecom operators to ensure that the new billing model resolves trust issues and ensures transparency in the billing process.

Under the new USSD billing regime, customers will receive consent messages before being charged for USSD transactions. After that, the telcos will reach out to their banks, through an aggregator, to confirm their eligibility. However, when transactions fail because of the bank’s services, the customers will still be charged. Adebayo explained that telcos are like your Uber ride. If it gets you successfully to your destination, you have to pay, even if you do not achieve your objective for going.

He further explained that if there is a network issue that impacts the transaction delivery, the telco will not bill the customer. Even when they have, they will reverse that billing. But if that failure emanates from the bank or the aggregators for which they have no direct responsibility, they will bill the customer. The telco will also notify customers when transactions fail because of bank unavailability or aggregator issues.

Both ALTON and the telco agree that USSD services are not meant for emergency uses and that customers will not be allowed free or borrowed access if they don’t have airtime or have a zero account balance. Adebayo concluded that there are toll-free emergency numbers like 112 and 121 if people are in distress. He doesn’t think that the USSD service is ideal if you have an emergency.