Central Bank of Nigeria Unveils USSD Code For eNaira

Ten  months after the launch of the eNaira by the CBN, the apex bank has proceeded to unveil the USSD code for the country’s digital currency. The new USSD code which is *997#, was introduced by the CBN to deepen financial inclusion, and also to ensure that all transactions can be accessed through the channel.

The newly unveiled USSD code according to the CBN will avail Nigerians, opportunities to endless possibilities through financial services. The eNaira has been reported to have recorded 840,000 downloads since its launch in 2021, and has recorded N4 billion transactions across the 270,000 active wallets comprising 252,000 consumer wallets and 17,000 merchant wallets.

The CBN is betting on the 81 million Nigerian adults who use mobile phones, and 150 million mobile subscribers, for the successful adoption of the eNaira. The unveiling of the eNaira USSD Code took place in Kano State on Thursday, where the CBN governor of operations, Folashade Adenisi Shenubi represented the Central Bank Governor, Mr. Godwin Emefiele where he said the eNaira is expected to enhance inclusion, support poverty reduction, and enable direct welfare disbursement to citizens.

In his words;

“It captures the slogan ‘same naira, more possibilities, and designed to positively impact lives of Nigerians, and transform the economy.”

“The eNaira is expected to enhance inclusion, support poverty reduction, enable direct welfare disbursement to citizens, support a resilient payments ecosystem, improve availability and usability of central bank money,”

”Since its inauguration, the eNaira had reached 840,000 downloads, with about 270,000 active wallets comprising more than 252,000 consumer wallets and 17,000 merchant wallets. In addition, the volume and value of transactions have been remarkable above 200,000 and N4 billion naira respectively.

“The eNaira will make a significant positive difference to Nigeria and Nigerians. It was also developed to provide Nigerians with a cheap, safe, and trusted means of payment. It is unlike the offline payment channels like agent network, USSD, Wearables, Cards, and near field communication technology”.

The CBN via its Twitter handle disclosed that the eNaira is expected to improve availability and usability of money, facilitate diaspora remittances, reduce the cost of processing cash and improve the efficiency of cross-border payments.

The decision by the CBN to unveil the eNaira’s USSD code indicates that Nigerians without internet-enabled phones, can also make use of the eNaira for transactions. It has been reported that 35.9% of Nigerians do not have access to formal financial services, and about 45% do not own bank accounts.

This USSD code will no doubt deepen financial inclusion by giving a large percentage of Nigerians access to unlimited opportunities, through financial services. This decision by the CBN is no doubt based on an understanding of the financial inclusion in Nigeria, and the unique features of the Nigerian economy.

I earlier published an article on Tekedia, where I wrote on the need for Fintechs in Nigeria to develop offline transaction features, such as the introduction of USSD code, which I used Safaricom’s M-Pesa as a case study. It is however interesting that the CBN has adopted a similar initiative through the launch of the eNaira’s USSD code.

This feature will no doubt deepen financial inclusion, as Nigerians who do not own smartphones, can still be able to make transactions using the eNaira code. Through this, it is obvious that the CBN aims to financially include a lot of Nigerians who are unbanked, which is a major yardstick for economic development thereby creating capital accumulation.