Nigerians sent money worth N2trn via USSD codes in six months

Nigerians have sent money worth N2.19 trillion using Unstructured Supplementary Service Data (USSD) codes in six months, a report by the Central Bank of Nigeria reveals.

The CBN’s electronic payment statistics report has shown that Nigerians performed 252.06 million transactions which totalled N2.19 trillion carried out via Unstructured Supplementary Service Data codes between January and June 2024.

The N2.19 trillion recorded in the first half of 2024 represents 45.3 percent of the total value of USSD transactions in 2023 and 40 percent of the total transaction volume for the same year.

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In 2023, the sum of N4.84 trillion was transacted using USSD codes across 630.6 million transactions.

The USSD service has been widely adopted in the banking sector because it does not require an internet connection. It was initially developed by telecommunication companies for providing airtime and subscription services.

The USSD code has continued to play a crucial role in Nigeria’s financial inclusion strategy by offering users a platform with limited internet access to make fast and convenient transactions.

This function is essential in rural areas where internet connectivity remains unreliable.

However, USSD as a form of transaction has been threatened by over N250 billion debt which has been a contentious issue for the past six years.

It has prompted past interventions from the Central Bank of Nigeria under Godwin Emefiele’s leadership and Isa Pantami, the former minister of communications but no lasting solution has been reached.

Gbenga Adebayo, the chairman of the Association of Licensed Telecommunications Operators of Nigeria, earlier lamented that banks have been profiting from USSD services without fulfilling their payment obligations in the last six years.

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The telecommunication operators in Nigeria were seeing some progress in the repayment of the N250 billion debt tied to Unstructured Supplementary Service Data services, with smaller banks beginning to settle their obligations.

However, tier-one lenders responsible for the bulk of the debt are yet to make significant payments.

While USSD remains a dominant channel amidst existing challenges, other electronic payment methods have also seen substantial growth.