The Nigerian Communications Commission (NCC) has said that the end-user billing (EUB) policy for Unstructured Supplementary Service Data (USSD) banking in Nigeria is an important change in how customers are charged for transactions.

NCC said the EUB policy emerged as a consensus option between banking and telecommunications services sectors and their respective regulators (the Central Bank of Nigeria and the NCC) to address challenges around the seamless provision of USSD services. It is also designed to enhance customer experience and transparency.

In the Frequently Asked Question (FAQ) document by the NCC, the telecom regulator said currently, when a subscriber uses the USSD for any transaction, he/she pays through the airtime, “But when you use it for banking transactions, most banks deduct the charge from your bank account. This means that you are not in control of your spending, and you pay whatever you are charged.”

NCC however, said with the EUB: “Now you get to pay for USSD with your airtime like you do on other transactions via your mobile phone. This gives you several advantages, like the clarity of your billing: You determine what you will spend before a USSD session, and you know exactly what you have spent immediately when you conclude the transaction. Just like with your calls, SMS and data sessions. You do not have to wait till deductions are made from your bank account.”

“There will be no more issues around USSD deductions from your bank account.

“Customers are free to opt in or out of using USSD services for banking transactions.”

NCC said the EUB model is an important change in how customers are charged for transactions. It is being introduced to improve consumer quality of experience and to put customers in better control of their spending.

The telecom regulator said there will be no more deductions from users’ bank accounts for USSD, saying the model also helps to resolve long-standing disputes over USSD service debts between banks and Mobile Network Operators (MNOs).

Protecting customer data, the document noted that the NCC and CBN have put several measures in place to protect consumers. These include access to better information and value.

NCC said customers will be informed by their banks of the switch to EUB before implementation. It pointed out that users are free to stop using the channel “if they do not wish to pay through your airtime.

“USSD will continue to be charged at N6.98k per session. A session can last up to 120 seconds, so you do not have to rush. This gives you a better value as other transactions are charged at N1.63 per session of 20 seconds. This gives you a discount since you are paying N6.98 instead of N9.78.”

On what consumers should do if they experience challenges accessing the USSD platform or whilst transacting on the USSD platform, NCC said, “Reach out to your network operator; if you have challenges whilst transacting on the USSD platform, please contact your bank directly for assistance. Both Banks and Telecom Operators are obligated to provide support and ensure that consumers can effectively use USSD channels without issues.”

Under both CBN and the NCC Regulations, banks and telecom operators are required to notify customers if their banking or USSD services experience downtime.

NCC said under the EUB model, users should not be double-billed for the same transaction. To ensure this, the CBN and NCC have put in place several safeguards. These include the following the clear rules of engagement, regulatory oversight and transparency in communication.

The document revealed that the CBN has directed that banks must not charge for the USSD transaction when the customer is on EUB. It disclosed that only the MNO can charge users, in the same way they do for your voice, SMS and data transactions.

NCC has since directed that MNOs must provide customers with an end-of-activity notification telling them exactly what has been charged.

The CBN and NCC are actively overseeing the transition to ensure compliance with these billing rules. Non-compliance by banks or telecom operators could lead to regulatory sanctions, reinforcing the commitment to prevent double billing and protect consumer interests.

Banks and telcos are expected to communicate clearly with consumers regarding the new fee structure, ensuring that users understand they will only be charged once per transaction.

The document informed that MNOs, individual banks and their respective Value-Added Service (VAS) integrators are working to ensure a seamless transition to EUB.

“Each bank is expected to formally notify its customers once all the mandatory formalities are completed. These formalities include the completion of technical integration and end-to-end testing, as well as the signing of Service Level Agreements (SLAs) to guarantee superior customer experience and consumer protection. Your bank will therefore notify you of the actual commencement date after all the conditions have been met,” it stated.