E-Financial
NCC, Others to Meet over USSD Charges
Nigerian Communications Commission (NCC), Central Bank of Nigeria (CBN), and Body of Bank CEOs are to meet to resolve the dispute surrounding charges for use of Unstructured Supplementary Service Data (USSD), the Nation reported.
First Bank USSD Account Opening
According to Wikipedia, ‘USSD, sometimes referred to as “Quick Codes” or “Feature codes”, is a communications protocol used by GSM (global service for mobile communications) cellular telephones to communicate with the mobile network operator’s computers. But it is now used for transferring cash and transacting other banking services by customers in line with the cashless policy of the CBN.
According to the Nation. the USSD services of the lenders include GTB’s *737#; First Bank’s *894#; Fidelity Bank’s *770#; Access Bank’s *901#; and UBA’s *919#. They all run on telecoms infrastructure.
While there is an initial charge of N50 by the bank, which will be retained, customers who use the USSD will be made to pay additional N4, which would have automatically translated to double billing.
The meeting, which would hold early in the new year, would be at the instance of the NCC and the CBN. It is expected, among other things, to end the bickering by the telcos over their denial to charge customers for using the platform for banking transactions.
The telcos had threatened to invoke the relevant sections of the Nigeria Communications Act 2003 by disallowing the banks further access to the USSD link over the conspiracy of silence by the relevant stakeholders after Dr Isa Pantami, Communications and Digital Economy minister, had ‘directe’ the NCC to bar the telcos from collecting charges for use of the infrastructure they built with their cash.
But a source in the NCC said the regulator had not abandoned the telcos.
“We are on top of the situation. We have not abandoned the telcos as alleged. You know the issue concerns multiple stakeholders. You will agree with me that it is not so easy to iron the matter because of this. But let me assure you that as a responsive regulator, we will collaborate with the CBN as we did during the 9mobile crisis to prevent any problem. You should also remember that this issue at stake touches that heart of the policy of the Federal Government,” the source said.
Gbenga Adebayo, chairman, Association of Licensed Telecoms Companies of Nigeria (ATCON), said the USSD channel has evolved from a telco exclusive channel used for only telco services, such as balance inquiry and recharges, to a channel being utilised for the deployment of financial, insurance, agricultural and government services, etc. The USSD channel is delivered using the Standalone Dedicated Control Channel (SDCCH) which is also used for call set-up, SMS set-up, and delivery.
Similar to the other telco services such as SMS, voice and data, network resources are utilised in the provisions of USSD services and as such there are significant costs associated with deploying and maintaining the service.
“The banks, however, identifying the convenience of delivering services to its customers over the USSD channel applied to the NCC for USSD codes to deliver these services. USSD Shortcodes were thereafter issued to the banks and as is expected, they became fully responsible for the charges associated with delivering services to their customer through these shortcodes.
“To accelerate the adoption of financial services on USSD, the banks partnered our members to zero-rate the USSD access to end-users, while the banks bore the cost for the provision of service,” he said.
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.
These service fees charged by the banks were however far over the costs remitted to our members by the banks for providing the USSD platform and have since remained so.
“Following the issuance of the USSD Pricing Determination by the N CC which resulted in a price review of USSD service by our members, the banks stated 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 Banks 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 will be discontinued post-implementation of end-user billing by our members,” Adebayo said.
He said the removal of these service fees by the banks 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 banks which in some instances are as high as N50.
“Our members were however concerned that the banks were unlikely to discontinue the USSD service fees charged by the banks when customers utilise the USSD channel thereby resulting in double and overbilling, whereby our members charge consumers for the USSD access from their airtime and the Banks still proceed to charge the same consumers a service charge from their bank accounts. In the interest of the consumers, our members challenged the implementation of end-user billing until a formal request for its implementation was received from the Body of Bankers Chief Executive Officers and several banks specifically demanding that end-user billing be implemented.
“In view of the opposition to the implementation of end-user billing by customers, our members, as responsible and responsive corporate citizens are committed to safeguarding consumer interests, and in this regard, we are willing to explore mutually beneficial solutions which ensure that costs associated with the provision of USSD services as determined by the NCC are fully recovered by our members and customers are not billed twice for the same service and by different institutions which is what end-user billing advocat
The Securities and Exchange Commission (SEC) has revised the minimum capital applicable to all categories of regulated capital market entities after 10 years.
The minimum capital review, according to the SEC, is informed by the need to strengthen market resilience, enhance investor protection, align capital adequacy with the evolving risk profile of market activities, and ensure that regulated entities possess sufficient financial capacity to discharge their obligations in a sustainable manner.
“The revised Minimum Capital framework seeks to: enhance the financial soundness and operational resilience of market operators; align capital requirements with the scope, complexity, and risk exposure of regulated activities; promote market stability and systemic risk mitigation; and support innovation and orderly development of new market segments, including digital assets and commodities markets,” SEC said in a January 16 circular to market operators.
The SEC circular was sent to all entities regulated by the Commission, including but not limited to core and non-core capital market operators; market infrastructure institutions; capital market consultants; financial technology (FinTech) operators; Virtual Asset Service Providers (VASPs); and Commodity market intermediaries.
All affected entities are required to comply with the revised Minimum Capital Requirements on or before June 30, 2027, the circular said.
“Entities that fail to meet the prescribed requirements within the stipulated timeline shall be subject to appropriate regulatory sanctions, including suspension or withdrawal of registration, as may be determined by the Commission,” SEC said.
Tier-1 Portfolio Managers (Full Scope) involved in the management of Collective Investment Schemes (CIS) and Alternative Investment Funds (Private Equity, Venture Capital, Infrastructure Funds etc) above N20 billion Net Asset Value (NAV), or discretionary and Non-Discretionary Private Portfolio Management Services above N20 billion Assets under Management (AuM), or exposure to foreign instruments up to 40 percent of the NAV are now required to have a minimum capital of N5 billion as against N150 million.
“Any Fund and Portfolio Manager with NAV/AuM of more than N100billion should have a minimum of 10 percent of the NAV/AuM as capital,” SEC added.
For the Tier-2 fund/portfolio managers (Limited Scope) who are in the business of management of Collective Investment Schemes with limited pooled fund creation of not more than 10 times the required capital (N20 billion) on Net Asset Value (NAV), or discretionary and non-discretionary private portfolio management services of not more than N20 billion, or those exposure to foreign instruments of not more than 20 percent of the NAV, now require N2 billion as minimum capital as against low of N150 million.
Likewise, broker-dealers whose services include: client execution, proprietary trading, margin/securities lending and advisory services no longer require N300 million minimum capital to operate but N2 billion.
The SEC said the minimum capital review from 2015 low is in line with its mandate under the Investments and Securities Act 2025 to regulate and develop the Nigerian capital market.
Also, Tier 1 issuing houses who do non-interest finance services, advisory & arrangement services but no underwriting now require N2 billion as against N200 million; while Tier 2 –issuing houses with underwriting and offers a ‘one-stop-shop’ for issuers, provides underwriting services, and renders advisory and product development services require N7 billion minimum capital for this business as against N200 million.
Also, the minimum capital requirement for brokers (client execution only) has been jacked up from N200 million to N600 million, while that of dealers (proprietary trading only) has been moved from N100 million to N1 billion.
Broker-Dealers’ (client execution, proprietary trading, margin/securities lending and advisory services) has been raised from N300 million to N2 billion, while Sub-Brokers’ (Digital) from N10million to N100million; Sub-Broker (Corporate) has been increased from N10million to N50 million. Also, sub-brokers’ (Individual) now need N10 million minimum capital for the business as against N2 million while inter-dealer brokers require N2 billion as against N50 million.
Securities and Exchange Commission (SEC) and the Nigeria Police Force have forged an alliance against illegal scheme operators, investment frauds, and cryptocurrency frauds in a bid to protect the hard-earned savings and the financial dreams of the Nigerian people.
Dr Emomotimi Agama, director-general of the SEC, stated this during a meeting with Kayode Egbetokun, Inspector General of Police, held in Abuja.
Agama said the SEC, as the sentinel at the gate of Nigeria’s formal capital markets, had the mandate to protect investors, maintain fair, efficient, and transparent markets, and promote the growth of a vibrant economy built on trust, which is done by setting rules, licensing operators and market surveillance.
He, however, stated that the Commission faced adversaries who operate in the shadows, outside regulated gates by exploiting the trust of people and promising miraculous returns such as 200 per cent in 30 days.
“Currently, there is a gap, a seam between identification and enforcement that these scammers exploit. Today, we aim to close that gap permanently. Therefore, we propose a robust, institutionalised collaboration with the following pillars: Joint Intelligence and Operations Task Force: Capacity Building and Knowledge Transfer; Streamlined Processes for Enforcement and National Public Awareness Campaign,” he stated.
The SEC DG advocated, “the establishment of a dedicated SEC-NPF team that combines market intelligence, forensic accounting, and understanding of complex financial schemes with investigative and intelligence-gathering capabilities. This team will be the rapid-response unit to new frauds.”
Agama also sought the permission of the IGP to go into a Memorandum of Understanding with the Cyber Security Unit of the Police Force in a bid to ensure that cyberspace is safe for all Nigerians
In his response, the IGP Kayode Egbetokun assured the SEC team that the Nigerian police Force is ready to collaborate with the Commission, strengthen partnership in all the ways possible, and ensure that the Commission achieves its aims.
He said, “Your role in the Securities and Exchange Commission is very crucial to the Nigerian Economy, and with our supervision and support from the government, we will ensure economic recovery and growth. If the police unit in SEC is strengthened, it is going to make such an impact on your enforcement drive. What you said speaks so much to your determination to ensure effective drive in the Capital market, and when we can achieve effective enforcement, it comes with so many benefits.
Egbetokun also congratulated the Commission on the recent achievement of the N100 trillion market capitalisation mark, adding that it will aid economic growth and development.
Nigerian fintech giant, Paystack has taken its boldest step yet beyond payments, acquiring Ladder Microfinance Bank. The fintech giant has quickly rebranded its new acquisition as Paystack Microfinance Bank (MFB) in a strategic shift that could reshape how African businesses access credit, deposits, and embedded financial services.
After nearly a decade building the backbone of online payments in Nigeria, the deal gives Paystack regulatory cover to hold deposits, lend directly to businesses and offer banking-as-a-service products.
More importantly, Paystack’s chief operating officer, Amandine Lobelle, highlighted that it allows the company to exert greater control over the trillions of naira that already flow through its platform every month, turning transaction data into a powerful engine for credit and treasury products.
“After 10 years of building payment infrastructure and going deep, we realised that businesses needed more than just getting paid to grow. We wanted to leverage the expertise that we have built over the last decade to continue to address some of the pain points that businesses have,” said Lobelle.
Paystack MFB will operate as a sister company to its payments business, initially focusing on working capital loans, merchant cash advances, overdrafts and term loans for small and medium-sized enterprises.
By using real-time payment data to underwrite loans, Paystack believes it can offer faster approvals and more accurate risk pricing than traditional lenders, directly tackling Nigeria’s estimated $32 billion small business financing gap.
For Paystack, founded in 2016 and acquired by Stripe in 2020, the move marks a strategic evolution from being just a payments processor to becoming a core part of the financial operating system for African businesses.
Today, Paystack supports more than 300,000 businesses across Nigeria, Ghana, and South Africa and has become one of Africa’s most trusted fintech infrastructure providers.
The banking licence is a game-changer as payments, once Paystack’s main growth engine, are increasingly commoditised across Africa. Lending, deposits and treasury services offer deeper margins, stickier relationships and long-term sustainability.
By layering banking services on top of payments, Paystack is betting that infrastructure depth will outperform flashy consumer scale.
However, the move also throws the Nigerian-born fintech giant into fierce competition with digital -first lenders and neobanks such as Moniepoint, Kuda, OPay and PalmPay, which already operate at massive scale. Still, Paystack’s strength lies in its merchant-first focus and developer-friendly APIs.
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