The Central Bank of Nigeria (CBN) has released a regulatory framework for the use of Unstructured Supplementary Service Data (USSD).
USSD, mreferred to as “Quick Codes” or “Feature codes”, is a protocol used by GSM cellular telephones to communicate with the service provider’s computers.
The code can be used for WAP browsing, prepaid callback service, mobile-money services, location-based content services, menu-based information services, and as part of configuring the phone on the network.
In the proposed framework, USSD based financial transactions will require an end-to-end encryption to protect the integrity of the financial information.
This is to reduce the risk by bank customers who carry out transactions on the platform.
According to the framework by the apex bank, mobile money operators are eligible for the issuance of short codes after meeting the necessary requirements of the Nigerian Communications Commission (NCC) for the issuance of the codes.
Financial institutions are required to treat and solve any customer related issues regarding these transactions within 48 hours, and the CBN warns that failure to do so will attract sanctions.
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