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Pantami wades in to resolve Banks and MTN USSD service dispute



USSD, Pantami
Minister of Communications and Digital Economy, Dr Isa Pantami

The Minister of Communications and Digital Economy, Dr. Isa Pantami has stepped-in to resolve the dispute between the largest Mobile Network Operator in Nigeria, MTN, and Financial Services Providers (FSPs); mostly the commercial banks, over the disconnection of subscribers from Unstructured Supplementary Service Data (USSD) services. had reported that millions of MTN subscribers, who rely on USSD for banking transactions and payment of certain bills, were disconnected from the service by banks on Friday.

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Multiple sources who spoke to this medium said that the dispute is not unconnected with the N42billion USSD debt owed to Mobile Network Operators by FSPs.

USSD is a second generation (2G) technology of Global System for Mobile Communications (GSM) protocol used to send text messages.

The MNOs under the umbrella of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), had on March 12, 2021 threatened to withdraw USSD services to Financial Service Providers (FSPs).

The Nigerian Communications Commission (NCC) issued an updated pricing methodology for USSD services for financial transactions in Nigeria.

The methodology explicitly restricts MNOs from charging the end user for the services and mandates the banking sector to enter into negotiations to settle outstanding obligations and agree individual pricing mechanisms to be applied going forwards.

“During this time, Mobile Network Operators (MNO’s) have continued to provide access to USSD infrastructure and our members have continued to pay all Bank charges and fees to access the Banking industries assets and customers, despite the fact that obligations due from banks to telecoms companies for USSD services has reached over Forty-Two Billion (N42B) Naira.

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“​ALTON members have continued to provide these services because our primary concern is that the millions of Nigerian customers who access financial services through our USSD infrastructure every day should be able to continue conducting their transactions. This was given greater importance when customers’ became further reliant on these services due to COVID movement restrictions. Unfortunately, as it has been impossible to agree on a structure for these payments with the banks that do not involve the end-user being asked to pay, the government has been forced to intervene to ensure that a sustainable cost-sharing solution is agreed, that does not disadvantage the consumer in the long-term.

“​We deeply regret that we have reached a point where the withdrawal of these services has become unavoidable, however, we remain committed to working closely with the relevant Ministries and regulators to resolve this issue as quickly as possible. To minimise the disruption to customers, and with the concurrence of the Honourable Minster of Communications and Digital Economy and the Nigerian Communications Commission, on the huge debt to the Network operators; Mobile Network Operators will disconnect debtor Financial Service Providers (FSPs) from USSD services, until the huge debt is paid.

To resolve the lingering dispute and ensure uninterrupted services to customers on USSD channel, the Pantami on March 15, 2021 chaired a meeting of key stakeholders to discuss an amicable resolution in the interest of the general public.

Represented at the meeting were the various MNOs; ALTON, Association of Telecommunications Companies of Nigeria (ATCON), DMBs (represented by the Chairman, Body of Bank CEOs) and the sector regulators – Central Bank of Nigeria (CBN) and Nigerian Communications Commission (NCC).

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Afterwards, a joint statement was issued by the Central Bank of Nigeria’s Acting Director, Corporate Communications, Osita Nwanisobi; and the Director, Public Affairs, Nigerian Communications Commission, Ikechukwu Adinde.

In that statement, parties agreed that “Effective March 16, 2021, USSD services for financial transactions conducted at DMBs and all CBN – licensed institutions will be charged at a flat fee of N6.98k per transaction, among other things.

However, MTN subscribers were taken aback when they couldn’t access USSD services on Friday.

To this end, Pantami who tweeted through his verified Twitter handle: @DrIsaPantami, wrote:

“On the fallout between @MTNNG and some banks on USSD services today, I engaged  with both regulators, the Governor of  @cenbank  and EVC @NgComCommission. We have reached an advance stage of resolving the issues, for the services to be restored to our citizens. Many thanks!”



  1. Pingback: Pantami Wades In To Resolve Banks And MTN USSD Service Dispute | Techvalley

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