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USSD: Telcos To Block Millions From Mobile Banking Over Banks’ Debt
Telephone companies in Nigeria have threatened to suspend USSD services over indebtedness by banks.
Millions of Nigerians use the shortcode platform to access banking services daily through their phones, but the telcos say they are being owed by the banks.
The Association of Licensed Telecommunication Operators of Nigeria (ALTON) said it will disconnect the banks from the service by March 15.
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In a statement signed by its chairman, Gbenga Adebayo, and head of operations, Gbolahan Awonuga, the group on Friday explained that the withdrawal became necessary after its members and banks failed to reach an agreement on a payment structure that will exclude phone users.
It said after the issuance of the USSD pricing, determined by the Nigerian Communications Commission, the banks decided that they would no longer pay for USSD service delivered to their customers and requested the telcos to charge customers directly.
“The banks, however, provided no assurances to our members that such service fees charged to customers’ bank accounts for access to bank services through the USSD channel would be discontinued post implementation of end-user billing by our members,” the group said.
It said the removal of these service fees by the banks would have meant that if bank customers were charged only the USSD costs communicated by telcos per USSD session, bank customers will be paying far less than what they are currently being charged by the banks which in some instances are as high as ₦50.
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