TimesNow.com.ng journalist Victor Enengedi has over a decade’s experience covering Energy, MSMEs, Technology and the Stock Market.
Unstructured Supplementary Service Data (USSD) transactions in Nigeria reached 252.06 million in volume and were valued at N2.19 trillion during the first six months of 2024,
This is according to data gathered from the Central Bank of Nigeria’s (CBN) latest electronic payment statistics.
This amount accounts for 45.3% of the total transaction value of N4.84 trillion recorded throughout 2023 and 40% of the overall transaction volume for the corresponding timeframe.
Initially developed by telecom companies for airtime and subscription services, USSD codes have evolved into a vital component of Nigeria’s financial inclusion efforts.
This technology allows users to carry out banking transactions without needing an internet connection, providing crucial support to rural areas with limited or inconsistent internet access.
However, USSD transactions continue to be jeopardized by an unresolved N250 billion debt, which has lingered for more than six years.
Since 2019, Deposit Money Banks and telecom operators have been embroiled in a dispute over the non-payment of USSD fees collected by the banks.
By 2019, the telecom companies reported that the outstanding USSD debt stood at N32 billion.
This amount grew to N42 billion by March 2021 and escalated to N80 billion by November 2022. The debt further increased to N120 billion in June 2023 and exceeded N200 billion by October 2024.
In May 2023, the Nigerian Communications Commission (NCC) authorized telecom providers, including MTN, Glo, Airtel, and 9mobile, to disconnect banks from USSD services.
This ongoing financial disagreement between telecom operators and banks has posed challenges to the long-term viability of the service.
The CBN also sought to resolve the issue in the interest of the financial system and the broader economy, but the intervention has yet to yield results.
Meanwhile, TimesNow.com.ng earlier reported that the use of an electronic payment system is set to reach a new height as the CBN begins the implementation of its cashless policy
One major structure to achieve this is the use of USSD for transactions since it doesn’t need internet
TimesNow.com.ng has provided a full list of all bank’s USSD codes for quick electronic funds transactions.
Source: TimesNow.com.ng
