USSD Banking Disruptions in Nigeria: Causes and Consequences
Revealed: Why Nigerian bank USSD transactions failed
Legit Nigeria
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Millions of Nigerians are experiencing disruptions in USSD banking services due to a new billing structure that requires mobile airtime for transactions. This change, along with stricter fraud measures, has left many customers frustrated and unable to complete transactions, impacting small businesses and the informal economy significantly.
- 01The new billing structure requires customers to have sufficient mobile airtime for USSD transactions, leading to failed transfers even with adequate bank funds.
- 02A fee of N6.98 (approximately $0.01 USD) is now charged for every 120-second USSD session, deducted from mobile airtime instead of bank balances.
- 03The Central Bank of Nigeria and the Nigerian Communications Commission have introduced stricter anti-fraud measures, contributing to transaction delays.
- 04The recent implementation of a 7.5% Value Added Tax on digital service charges has raised concerns about increasing banking costs for Nigerians.
- 05Telecom operators have stated they are not responsible for charges on failed transactions, emphasizing their role in providing network connectivity.
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Nigerians are facing significant disruptions in USSD banking services, affecting millions who rely on this method for daily transactions. The recent overhaul of the USSD payment system mandates that customers must have sufficient mobile airtime in addition to funds in their bank accounts to complete transactions. This change has led to confusion and frustration, particularly among small business owners and Point of Sale (POS) operators, as many transactions fail despite having adequate funds. The new billing model charges customers N6.98 (roughly $0.01 USD) for each 120-second USSD session, deducted directly from their mobile airtime. This has raised concerns over banking costs, especially with a new 7.5% Value Added Tax imposed on digital service charges. Stricter anti-fraud measures introduced by regulators, aimed at combating SIM swap fraud and identity theft, have further complicated the transaction process. Customers are calling for immediate intervention from financial institutions and regulators to restore reliable USSD banking services and enhance public awareness of the new system.
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The disruptions in USSD banking services are affecting daily transactions for millions of Nigerians, particularly in the informal economy where this method is widely used.
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