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N42bn Debt: Anxiety Over Planned Disruption of Banks’ USSD Codes

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Nigerian Banks

By Adedapo Adesanya

Customers of financial institutions operating in the country are confused and do not know what will happen from Monday, March 15, 2021, when they might not be able to use Unstructured Supplementary Service Data (USSD) codes to carry out a transaction.

This is because the Association of Licensed Telecommunications Operators of Nigeria (ALTON), the umbrella body of licensed telecommunications service providers (network operators, infrastructure companies and value-added services providers) has concluded plans to commence a phased withdrawal of USSD services to Financial Service Providers (FSPs) over N42 billion debt.

A statement signed by Mr Gbenga Adebayo, Chairman, ALTON and Gbolahan Awonuga, Head of Operations, the withdrawal of the services is billed to start with the most significant debtors within the FSPs.

ALTON disclosed that the withdrawal of USSD services to financial service providers was mainly due to huge indebtedness to telecom network operators.

Giving the background to the problem, ALTON said, “In order to accelerate the adoption of financial services on USSD, the Financial Service Providers (FSPs) partnered our members to zero-rate the USSD access to end-users, while they bore the cost for the provision of service.

“Based on this arrangement, the banks took on the responsibility of billing customers and paid our members for use of the USSD infrastructure from the service fees deducted from the customer’s bank account.

“Following the issuance of the USSD Pricing determination by the Nigerian Communications Commission (NCC) which resulted in a price review of USSD service by our members, the banks decided that they would no longer pay for USSD service delivered to their customers and requested our members to charge customers directly for use of the USSD channel.

“This billing methodology where the Financial Service Providers (FSPs) customer is directly charged USSD access fees by our members irrespective of the service charges that the bank may subsequently apply to the customers’ bank account is called End-User Billing which the banks specifically demanded that all our members implement.

“The banks, however, provided no assurances to our members that such service fees charged to customers’ bank accounts for access to bank services through the USSD channel would be discontinued post implementation of end-user billing by our members.

“The removal of these service fees by the Financial Service Providers (FSPs) would have meant that if bank customers were charged only the USSD costs communicated by our members per USSD session, bank customers will be paying far less than what they are currently being charged by the Financial Service Providers (FSPs) which in some instances are as high as N50.

“Additionally, the banks and telcos will be applauded for collaborating towards the financial inclusion objectives of the federal government.”

The further said it has been more than eight months since the NCC issued an updated pricing methodology for USSD services for financial transactions in Nigeria, a methodology which explicitly restricted Mobile Network Operators (MNO’s) from charging the end user for the services and mandated the banking sector to enter into negotiations to settle outstanding obligations and agree with individual pricing mechanisms to be applied going forward.

“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 N42 billion.

“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.”

The group disclosed that withdrawal of services to FSPs has become unavoidable saying, “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 debtorFinancial Service Providers (FSPs) from USSD services, until the huge debt is paid.

“Therefore, our members are initiating a phased process of withdrawal of USSD services, starting with the most significant debtors within the Financial Service Providers (FSPs) effective Monday March 15, 2021.”

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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CBN Allays Fears of Keystone Bank Customers Over Safety of Funds

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Keystone Bank Customers

By Aduragbemi Omiyale

The Central Bank of Nigeria (CBN) has assured customers of Keystone Bank Limited of the safety of their funds with the financial institution.

Recall that on Wednesday, February 12, 2025, the Lagos State Special Offences Court sitting in Ikeja ordered the forfeiture of the bank to the federal government.

The lender was taken from its shareholders, Sigma Golf Nigeria and Mr Umaru Modibbo, after its acquisition in 2017 was challenged by the Economic and Financial Crimes Commission (EFCC).

This action caused apprehension among some depositors of Keystone Bank because of safety of their deposits.

However, the central bank, which dissolved the management of the company in January 2024 and appointed the current team, has said customers have nothing to worry about.

“Following the court order that the shares of Keystone Bank Limited previously held by the shareholders be forfeited to the Federal Government of Nigeria, the Central Bank of Nigeria (CBN) wishes to reassure the public that Keystone Bank Limited remains safe, sound, and fully operational.

“We acknowledge that this development may have triggered customer concerns; however, we wish to underscore that the stability of the banking system and the safety of depositors’ funds remain our top priorities. Keystone Bank’s operations are entirely secure, and there is no reason for concern.

“For clarity, the Court Order merely reaffirmed the Central Bank of Nigeria’s prior decision to take over the management of Keystone Bank Limited in January 2024, following a change in its leadership.

“Since then, the CBN has closely monitored the bank’s operations to ensure they are in full compliance with regulatory standards, operational transparency, and the interests of depositors.

“As part of our commitment to safeguarding the financial system and building public trust, we shall continue to monitor the bank’s performance. We will take all necessary steps to protect the interests of depositors, staff, and stakeholders.

“Customers are also encouraged to contact Keystone Bank’s customer support or visit any Keystone Bank branch for inquiries or concerns,” a statement issued by the CBN on Friday by its acting Director for Corporate Commissions, Mrs Hakama Sidi Ali, said.

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Banking

Stanbic IBTC Bank, IFC to Empower Women Entrepreneurs

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Stanbic IBTC IDE

By Aduragbemi Omiyale

Research has showed that apart from funding, some of the unique challenges faced by women entrepreneurs are lack of business acumen and mentorship.

To address these hurdles, Stanbic IBTC Bank and the International Finance Corporation (IFC) have come together to empower women entrepreneurs.

The partnership aims to create a pathway to success for women who seek to turn their dreams into realities.

They will do this through the Goldman Sachs 10,000 Women programme, which offers tailored support, comprehensive business education, mentorship opportunities, and a platform for networking with industry leaders and fellow entrepreneurs.

The Goldman Sachs 10,000 Women is a global initiative delivered through the University of Leeds to foster economic growth by providing women entrepreneurs around the world with practical education, interactive activities, and instruction by educators from top business schools reaching over 200,000 women.

The curriculum covered in the training includes financial literacy, strategic planning, marketing strategies, and leadership development.

“We believe that supporting women in business is not just a necessity, but also a celebration of their resilience and determination. This was the reason we created the Blue Blossom community to allow women to network, get mentorship, and connect them to financial opportunities with discounted offerings that enable their businesses to grow.

“Our partnership with IFC to enroll women in the Goldman Sachs 10,000 Women SME training embodies our admiration and respect for women entrepreneurs.

“It is part of our commitment to ensure members of the community continue to get the support they need to ensure their businesses thrive,” the Head of Enterprise Banking at Stanbic IBTC Bank, Ms Olajumoke Bello, stated.

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Banking

GTBank Removes POS Processing Fees to Support Merchants

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GTBank POS Processing Fees

By Aduragbemi Omiyale

Guaranty Trust Bank (GTBank) Limited has reinforced its commitment to supporting businesses with cost-effective payment solutions by removing processing fees on all its Point-of-Sale (POS) terminals.

The company said this became effective Tuesday, February 11, 2025.

With this development, all merchants using GTBank POS terminals will no longer incur Merchant Service Charges (MSC) when receiving payments from customers.

With this initiative, all qualifying SME Merchants can now receive payments at zero cost, allowing them to reduce operational expenses, whilst promoting the merchant’s enterprise, and enhancing customer experience.

The Zero Processing Charge campaign aligns with GTBank’s ongoing efforts to empower businesses with innovative financial solutions that drive growth and efficiency.

For more information, merchants are encouraged to contact their Relationship Managers or reach out to the Digital Banking Support Team at [email protected].

“At Guaranty Trust Bank, we are always looking for ways to add value to our financial ecosystem.

“By implementing the zero processing fees on POS transactions, we are empowering businesses to get the full value of every payment they receive, whilst also ensuring a more seamless and efficient payment experience,” the Managing Director of GTBank, Ms Miriam Olusanya, said.

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