A recent shift to end-user billing for Unstructured Supplementary Service Data (USSD) transactions has left many Nigerians losing money to failed bank transactions.
With the new model, telecom operators deduct charges directly from customers’ airtime, sparking debates over who bears the blame for failed transactions.
Chinyere, a petty trader in Lagos, experienced this firsthand when she tried to transfer N5,000 to her supplier using her bank’s USSD code.
Despite the transaction failing, she was charged N13.96 – N6.98 for each failed session. Unfortunately, Chinyere’s story is not an isolated case, and many bank customers have reported similar experiences.
The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has expressed concern that the rising cases of failed USSD transactions and loss of money by bank customers threaten financial inclusion in Nigeria.
Many Nigerians still rely on USSD for transactions, but the experience of losing money is discouraging them from using the channel.
According to AMMBAN, the hidden costs of multiple deductions for unsuccessful transactions are making financial inclusion in Nigeria more expensive.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) Chairman, Engr. Gbenga Adebayo, argues that telecom operators cannot be blamed for failed transactions, as they deliver their part of the service at every point of a USSD transaction.
However, a bank official countered that the banks could have taken the blame when they were still doing corporate billing, deducting charges from customers’ accounts.
To address this issue, experts suggest that the USSD charge should only apply after a transaction is successfully completed, and telcos should auto-refund airtime where a session fails or terminates prematurely.
The Nigerian Communications Commission (NCC) has reportedly received complaints about the issue and plans to introduce modalities to address it.
