The Central Bank of Nigeria has developed “The Regulatory Framework for the Use of Unstructured Supplementary Service Data (USSD) in the Nigerian Financial System” to improve the security of their electronic payments system. The framework will be in effect starting 1ST June 2018.
Mobile phones are being increasingly used to further financial inclusion. The providers of mobile financial services use varying technologies to provide transaction services, one of which is USSD. This framework includes information on the eligibility of providers to use USSD shortcodes, data protection and security requirements for financial institutions providing use of USSD, sufficient dispute resolution mechanisms and mandatory service level agreements. If participants however fail to comply with the framework, they will face sanctions.