Transactions conducted via Unstructured Supplementary Service Data (USSD) codes in Nigeria recorded 252.06 million transactions valued at N2.19 trillion in the first half of 2024, according to the Central Bank of Nigeria’s (CBN) latest electronic payment statistics.

This figure represents 45.3% of the total transaction value of N4.84 trillion recorded in the entire 2023, as well as 40% of the total transaction volume for the same period.

USSD codes, designed by telecom companies for airtime and subscription services, have become a cornerstone of Nigeria’s financial inclusion strategy.

The technology enables users to perform banking transactions without an internet connection, offering a lifeline to rural communities where internet access is limited or unreliable.

Despite its importance, USSD transactions face a longstanding threat from a N250 billion debt that has remained unresolved for over six years.

Deposit Money Banks and the telecoms operators have been at loggerheads since 2019, over the non-remittance of USSD fees charged by banks.

As of 2019, telcos said the accumulated USSD debt was N32 billion. The figure continued to accumulate to reach N42 billion as of March 2021 and N80 billion as at November 2022, until it rose to reach N120 billion in June 2023 and over N200 billion in October 2024.

In May 2023, the NCC granted telcos in the country — MTN, Glo, Airtel, and 9mobile — the approval to disconnect banks from using USSDs.

This financial dispute between telecom operators and banks has hindered the sustainability of the service.

Past efforts to address the issue, including interventions led by former CBN Governor Godwin Emefiele and former Minister of Communications Isa Pantami, have failed to yield a lasting solution.