Angst as Groups Threaten Legal Action over USSD Pricing

Subscriber groups have threatened to take legal action as soon as the new Unstructured Supplementary Service Data (USSD) service charge of N6.98 takes effect.

Deolu Ogunbanjo, president, NATCOMS

Recall that the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) had announced that USSD services for financial transactions would be charged at a flat rate fee of N6.98 per transaction.

This followed threats by the Mobile Network Operators to withdraw the USSD services from the banks due to an outstanding debt of over N42bn.

Deolu Ogunbanjo, president, National Association of Telecoms Subscribers of Nigeria (NATCOMS), described the charge as a step back from financial inclusion.

According to Punch, Ogunbanjo said that it was unacceptable that the quarrel between the banks and the telecom operators was resolved by taxing subscribers

He said the banks should have rather been charged.

“Everything in telecoms that’s meant to put smiling faces on subscriber faces is now being eroded. Why should they increase the USSD transaction fee? It’s appalling and condemnable, and we’ll take it up with them,” Ogunbajo said.

He stated that the group would take the banks to court if the charge gets implemented.

Also Sina Bilesanmi, president, Association of Telephone, Cable TV and Internet Subscribers (ATCIS) also expressed displeasure over the new USSD service charge.

Bilesanmi, said the charge was unacceptable and must be rejected by every bank account holder.

“It is exploitative and this dictatorial act must stop forthwith. I am amazed that the same CBN that was initially opposed to the unjustified increase in USSD service charge in 2019 now made the announcement of the hike,” Bilesanmi said.

The ATCIS president called for the immediate reversal of the USSD service charge.

“If the Central Bank of Nigeria and telecommunication companies did not revert to the previous rate, we shall institute a legal action against them,” he added.