Banks, Not Telcos, Should Be Blamed for Failed USSD Transactions, Stakeholders Say

By Joseph Iyaji | Akahi News

The ongoing dispute over responsibility for failed USSD banking transactions has taken a new turn as industry stakeholders argue that banks, rather than telecom operators, should bear the blame for deductions made on unsuccessful transactions.

Sources in the banking sector reportedly told Daily Trust that telecom operators ought to be held accountable. However, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, firmly dismissed this position, insisting that telcos only provide the platform to connect customers with their banks.

‘Telcos Only Provide the Link’

Speaking in Lagos, Adebayo likened the role of telecom operators to that of a vehicle transporting customers to the bank.

“Operators deliver you to the infrastructure of the bank; we have no control over what happens there,” he explained.

Drawing a vivid analogy, he recounted a personal experience:

“I went to the bank to collect my debit card. My driver took me to the bank. After collecting the card, I was directed to the ATM. Out of seven machines, none had cash. Should I blame my driver? Of course not. He did his part. Similarly, we deliver customers to the banks through USSD; what happens afterwards is beyond us.”

Customers Should Sue Banks, Says NATCOMS

Supporting this stance, the President of the National Association of Telecommunications Consumers of Nigeria (NATCOMS), Chief Deolu Ogunbanjo, said telecom subscribers should hold banks accountable—and even seek legal redress—for failed USSD transactions and wrongful deductions.

“USSD is a critical channel for both the financially excluded and the vulnerable. The CBN and NCC must ensure complaints about failed transactions are promptly addressed in the interest of consumers and the wider financial system,” Ogunbanjo said.

He stressed that USSD remains popular because of its simplicity and accessibility, especially in rural areas with limited internet penetration. CBN data revealed that Nigerians processed 515 million USSD transactions last year alone.

End User Billing (EUB) Policy Introduced

To tackle issues surrounding billing transparency, the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) jointly introduced the End User Billing (EUB) policy.

Before the EUB, banks deducted USSD fees directly from customers’ bank accounts, leaving consumers with little control. Under the new system, users now pay for USSD services directly via airtime, just as they do for regular calls or SMS.

The NCC explained that the policy aims to improve transparency, prevent double billing, and clarify the roles of banks and telecom operators in the transaction process.

Safeguards for Consumers

Both regulators have mandated banks and telecoms to notify customers promptly in the event of service disruptions.

Key safeguards under the EUB model include:

• Clear Rules of Engagement: Banks cannot charge customers for USSD under the EUB policy; only telecom operators may do so.
• Regulatory Oversight: The CBN and NCC are actively monitoring compliance, with sanctions awaiting defaulters.
• Transparency in Communication: Customers must be informed about charges through real-time notifications after each transaction.

Consumers who face double billing are advised to report immediately to the CBN via phone at +234-70-0225-5226 or email at contactcbn@cbn.gov.ng.

Calls for Collaboration

Experts say the success of USSD banking depends on seamless collaboration between banks and telecom operators, supported by strict regulatory oversight. With millions relying on the service daily, stakeholders stress the importance of building trust through accountability and efficient complaint resolution mechanisms.

As the debate continues, consumers are urged to demand transparency while regulators work towards a fair and efficient digital banking ecosystem.

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