By Gabriel Ewepu – Abuja
Civil Society Organisations, CSOs, Wednesday, kicked against the new N6.98 kobo per Unstructured Supplementary Service Data, USSD, transactions that commenced on Tuesday as announced by the Central Bank of Nigeria, CBN, and Nigerian Communications Commission, NCC.
Poor, vulnerable Nigerians’ll be squeezed — HOMEF
The Director of Health for Mother Earth Foundation, Arc Nnimmo Bassey, said, “The rise in domestic petrol price and the CBN’s decision to allow commercial banks to charge customers N6.98k per transfer transaction is another measure to squeeze the poor and the vulnerable beyond measure. It is a policy that should never have left the board room where it was taken.
“For a people struggling with inflation and stagnant or shrinking wages, the multiple effects of any further grabbing of a kobo from peoples’ purses is a slap too much.
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“Whilst the country seems to have only just limped out of its second recession in three years, insecurity and economic issues threaten wider national stability. The country’s jobless rate has also increased.
“It is a big shame that 63 years after the first extraction of crude oil in commercial quantities Nigeria is still importing refined petroleum products. It is like the country is drunk on wine mixed by colonial powers. The nation must wake up from this nauseating stupor and do the needful.
“The CBN should suspend the measure. They can charge other fees on transactions that are in millions and billions. There is a limit to how much a CBN can punish citizens. Do they want Nigerians to resort to banking under their pillows. The CBN should stop ambushing poor Nigerians.
Grossly insensitive to the pulse of citizens — Global Rights
The Executive Director, Global Rights, Abiodun Bayewu, said, “It is daylight robbery. The economy is bad enough as it is, and now they have introduced a policy that is bound to tip inflation over the hedge.
“We can also begin to expect a regression in our attempts at establishing a cashless economy since we are not incentivizing it.
“The timing is not only wrong it is grossly insensitive to the pulse of citizens at this time.
“I advice that this policy be immediately reversed because it is ill timed and will do nothing to improve the economy for the majority. The only people set to profit are banks and telecom companies and they should be ashamed for wanting to profit off the misery of the poor.
Nigerians don’t need this burden — ActionAid
The Country Director, Actionaid Nigeria, AAN, Ene Obi, said, “The granting of approval by the Central Bank of Nigeria, CBN, and the Nigerian Communications Commission, NCCto impose a new charge (a flat rate of N6.98 per transaction) for mobile banking services in the country does not consider the precarious situation in which Nigerians are already.
“It has only dealt with the ending the row between banks and telecoms operators by heaping the burden of the new charge on the masses.
“It will also likely going to slow down the gains made in expanding financial inclusion in the country, if some citizens shun or reduce the rate of usage of the Unstructured Supplementary Service Data (USSD).
“The implementation of USSD end-user billing may not have immediate significant impact on the price of goods and services now, but over time, with the biting inflationary rate and the high cost of living in Nigeria, more people will further be impoverished.
“This certainly is not the right time for the implementation of USSD end-user billing because Nigerians are still grappling with the socio-economic impacts of COVID-19, stamp duty charge, VAT, new electricity rate, and others.
“Our advice- Making USSD more robust will deepen financial inclusion in Nigeria but the masses are really overburdened by the economic policies of the government.
“Government ought to have subsidized the payment for the USSD service being offered the Association of Licensed Telecommunication Operators of Nigeria (ALTON). It will be argued that government does not have money, but if we cut down on cost of governance, so many burdens will be lifted off the masses.”
New USSD charge will trigger massive inflation — CN
The Convener, Concerned Nigerians, CN, Deji Adeyanju, said, “This policy by the Central Bank of Nigeria, CBN, is definitely going to affect inflation and economy because our economy is largely dependent on import we are not practically producing anything at this point and as such you will expect that when a policy comes out such as this one that it will affect prices of goods and services in the market whether it be essential commodities, whether it be drugs, hospital equipment, phones, even things that we need for patients who are in the hospital treating COVID.
“If you say for every transaction that there is going to be a fee to be attached for every transaction, it simply means that give or take people are going to be on the receiving end and there is no way such a thing will not come with a price.
“For me I think it is going to further dampen the morale of the manufacturing sector of the economy, again it will also pricing generally in the country.”
It’s insensitive for this to happen while Nigerians are hungry — OLF
The Founder, One Love Foundation, OLF, Chief Patrick Eholor, said, “The only thing without cost in Nigeria is air.
“Thank God it will forever be free and the same for both the ruling class and the masses. It is sad at this point that the only thing our leaders and policymakers does no brainstorming on how to make life more difficult for Nigerians.
“One would have thought that the increase in VAT, Increase in fuel, Electricity Tariff and others would have been enough even though the minimum wage is too small to sustain any family.
“Therefore, for the CBN to allow commercial banks charge Nigerians N6.98k per transaction is insensitive especially now that majority of Nigerians cannot even feed, millions of people are out of job a d employment rate is so high.
“The CBN should’ve thought of implementing peoples orientated policies that will help reduce the biting cost or effect of inflation as currently being experience.
“The federal government should as a matter of urgency reverse the decision and try to consider the masses first before taking some of these decisions that are anti masses.
“I think the reason while they do this without consulting the masses is because they know our votes would not count and they can always maneuver things to favour them.
“We are going to surprise them all as a CSO and it is our duty to continue to push until we achieve the Nigeria of our dream.”
We demand more explanation on this charge — AFAN
The National President, All Farmers Association of Nigeria, AFAN, Arc Kabir Ibrahim, said, “This charge has to be explained because it needs to be attached to an amount either per $10,000 or $100,000. If it is affecting Naira transactions then it is balderdash.
“I find it on the high side but if it is explained in more detail we may be able to appreciate what it portends.
“Cost of Funds could have a direct effect on prices of commodities so it can cause inflation even if in an indirect manner.
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“Once food costs rise a lot of discomforts follows on the cost of living generally so Nigerians will groan.
“The policy is coming from someone who seems to have more sympathy for the banking sector rather than the citizens. It is ill-timed and counterproductive to the generality of the people.
“CBN should explain what it is all about and justify that against the prevailing economic challenges in the country. If you cannot justify it by all means rescind the decision.”
Nigerians want things that’ll improve their lives not this — PMNN
The Founder, Peoples Movement for a New Nigeria, PMNN, Yahaya Ndu, said, “My view about CBN’s decision to allow commercial banks to charge customers N6.98k per transfer transaction is that the charge of N6.98k is that the charge cannot be described as outrageous and to my mind, it is quite reasonable.
“The implication of this on the price of goods and services to my mind will be marginal as the charge like I said earlier is reasonable. Remember that it is per transaction and not per naira.
“The only problem is that we Nigerians are always looking for any opportunity to exploit our fellow countrymen and women. I do not see how such a slight charge would affect the price of goods and services.
“I don’t see this is not the right time for it. What worries me at this point in time and what in my opinion is worrying the average Nigerian today is the frightening level of insecurity that has enveloped all parts of the country.
“As far as I am concerned government is doing by far too little maybe because the major operators of the Government whether of the Executive, Legislature or Judiciary are living virtually and practically in a different world.
“They do not feel the pain that the average Nigerian of the North, south , east, and west feels.
“The CBN, as well as other agencies and tentacles of Government, should realize that the security of lives and properties is the primary responsibility of government.
The CBN and the Government should realize that no economic policy will make any sense in the long run if we do not get our security architecture right.
“We need as a matter of the greatest urgency, community, local government, State and zonal police establishments to complement the Federal Nigerian police service if we are to stand any chance of getting the security right.
The imposition of new USSD charge amounts to duplication of charges-Yiaga Africa
The Programme Manager, Yiaga Africa, Paul James, said, “The Central Bank of Nigeria, CBN, should provide lucid clarifications on the new charges on customers, as there are speculations that the apex bank is imposing charges on citizens to pay up its debt.
“The imposition of this new charge may mean duplication of charges for both the telcoms and the banks and Nigerians continue to bear the brunt.
“The fact that the new charges were the outcome of a meeting between banks and telecom operators over the 42 billion debts owed mobile operators by banks, raises eyebrows and concerns over the undue charges of Nigerians to pay up the debt.
“More so, the fact that majority of Nigerians who do not use smartphone depend on USSD code for transaction means the CBN and by extension, the government has devised new ways to extort poor Nigerians.
‘Despite the economic situation of the country, Nigerians continue to bear duplicate charges which affect buying and selling of goods and services. While the charge may look insignificant, other bank charges and SMS alert charges on citizens further drain citizens’ financial strength.
‘This will no doubt affect small and medium scale traders whose profits margin is thin. Thus, they tend to transfer the brunt to the final consumers. This is not a good time to impose new charges on citizens as inflation and unemployment continue to rise. In addition, retailers will transfer this on cost of goods to citizens who are currently battling the economic realities of COVID-19. Nigerians need to be consulted before critical decisions are taken on their behalf.”
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