Nigerians are grappling with unexpected losses from failed Unstructured Supplementary Service Data (USSD) transactions, as banks and telecom operators shift blame, leaving customers to bear the cost. A Lagos trader, Chinyere, recently lost N13.96 after two failed N5,000 transfer attempts via her bank’s USSD code, charged N6.98 per session despite no funds being delivered, a common issue reported nationwide.
Yusuf Adeyemo, National Vice President of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), warned that these deductions undermine financial inclusion. “While N6.98 seems small, multiple charges for failed transactions add up, discouraging people from using banking services,” he said. Many customers face deductions for basic tasks like checking their BVN or retrieving their NIN, making financial access costlier.
Since June 18, 2025, telecom operators have shifted to end-user billing, deducting USSD charges directly from customers’ airtime, following a Nigerian Communications Commission (NCC) directive developed with the Central Bank of Nigeria (CBN). This resolved a long-standing dispute where banks failed to remit charges to telcos. However, ALTON Chairman Gbenga Adebayo argued telcos aren’t liable, likening their role to a driver delivering customers to a bank’s infrastructure, where failures occur. A bank official, speaking anonymously to Nairametrics, countered that telcos, not banks, now collect the charges, deflecting responsibility.
Elvis Eromosele, Editor of TheNumbersNG, who has faced similar debits, called for charges only on successful transactions, automatic refunds for failures, and user-friendly dispute resolution platforms. He urged the NCC and CBN to collaborate with banks and telcos to address the issue and launch public awareness campaigns. An NCC source confirmed receiving complaints and promised forthcoming solutions.
Amid Nigeria’s economic strides, with capital importation up 67.12% to $5.64 billion in Q1 2025, persistent naira volatility (N1,560/$1) and 21.88% inflation in July highlight the urgency of resolving these hidden costs to maintain trust in digital banking.
