The Central Bank of Nigeria has revealed that Unstructured Supplementary Service Data codes facilitated 252.06 million transactions worth N2.19 trillion between January and June 2024.
This figure is significant when compared to the full-year data for 2023, which recorded N4.84 trillion in transactions across 630.6 million transactions. The first-half data for 2024 accounts for 45.3 percent of the total value and 40 percent of the transaction volume recorded in 2023.
USSD codes, initially introduced by telecom companies for basic services like airtime recharge, have gained widespread adoption in the banking sector due to their accessibility without an internet connection. This service is particularly important in rural areas where internet connectivity is unreliable.
However, the growth of USSD transactions faces challenges, primarily due to a longstanding N250 billion debt owed by banks to telecom operators. The issue, unresolved for six years, has prompted interventions by former CBN Governor Godwin Emefiele and the former Minister of Communications, Isa Pantami, but no lasting solution has been found.
The Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, has criticized banks for benefiting from USSD services without meeting their payment obligations.
“Banks have been profiting from USSD services without fulfilling their payment obligations in the last six years,” Adebayo said earlier.
Recently, smaller banks have begun repaying portions of the debt, but tier-one banks, responsible for the majority of the outstanding amount, have yet to make significant progress. Adebayo noted, “While some repayments have been recorded, they fall short of expectations.”
Despite these challenges, USSD remains a critical platform for financial transactions, contributing to Nigeria’s financial inclusion goals.
Other electronic payment channels have also seen substantial growth in 2024. Automated Teller Machine (ATM) transactions reached N12.21 trillion across 496.44 million transactions in the first half of the year, while Point-of-Sale (POS) transactions continue to highlight the country’s shift towards cashless payments.
