Central Bank of Nigeria reported that a total of 252.06 million transactions, amounting to N2.19 trillion, were conducted using Unstructured Supplementary Service Data codes between January and June 2024.
This marks a notable achievement when compared to the full-year figures for 2023, which recorded N4.84 trillion in transactions from 630.6 million USSD transactions.
The N2.19 trillion transacted in the first half of 2024 represents 45.3% of the total value of USSD transactions for 2023 and 40% of the total transaction volume during the same period.
Originally designed by telecom companies for airtime purchases and subscriptions, USSD technology has seen widespread adoption in the banking sector due to its ability to function without an internet connection.
This makes it an essential tool for promoting financial inclusion, particularly for users in rural areas where internet access is limited or unreliable.
However, this vital service has been undermined by a debt of over N250 billion, an ongoing issue for the past six years that has seen multiple interventions by the Central Bank of Nigeria, under the leadership of Godwin Emefiele, and former Minister of Communications, Isa Pantami. Despite these efforts, a lasting resolution has yet to be reached.
Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, recently expressed frustration, noting that banks have been benefiting from USSD services without settling their payment obligations over the past six years.
In a report from last month, The PUNCH highlighted that telecom operators in Nigeria have seen some improvements in the repayment of the N250 billion debt tied to USSD services, with smaller banks beginning to meet their obligations.
However, tier-one banks, which account for a large portion of the debt, have yet to make substantial payments.
While USSD remains a significant channel for financial transactions in Nigeria, it is facing competition from other electronic payment methods, which have also experienced substantial growth. Automated Teller Machine transactions, for instance, reached N12.21 trillion in the first half of 2024, across 496.44 million transactions.
Additionally, Point-of-Sale transactions continue to rise, reflecting the country’s growing trend toward cashless payments.
