Key points
- Remita says rising USSD charges could reverse progress in financial inclusion.
- The warning was issued by Lanre Idowu, Divisional Head of Financial Industry Partnerships at Remita.
- USSD transactions currently attract a ₦6.98 flat fee per session under the 2026 “pay-as-you-go” billing model.
- Idowu urged regulators, banks and telecom operators to review pricing to keep USSD affordable.
- He called for greater investment in digital infrastructure, cybersecurity and financial inclusion.
- Remita said broadband gaps and rising connectivity costs continue to limit digital access for millions of Nigerians.
Main Story
The Divisional Head of Financial Industry Partnerships at Remita, Lanre Idowu, has cautioned that rising Unstructured Supplementary Service Data (USSD) transaction charges could undermine Nigeria’s progress in expanding financial inclusion, particularly among low-income and underserved populations.
Idowu gave the warning while speaking at the Nigeria Information Technology Reporters Association (NITRA) Conference in Lagos, where he stressed that USSD banking was introduced to provide financial services to Nigerians without smartphones or internet access.
According to him, increasing transaction costs could discourage the adoption of USSD services among the very users the platform was designed to serve, thereby slowing efforts to bridge the country’s digital divide.
He described USSD as a critical channel that enables millions of Nigerians in underserved communities to access banking services, including money transfers, bill payments and airtime purchases, without requiring broadband connectivity or smart devices.
Industry data indicates that USSD transactions currently attract a flat charge of approximately ₦6.98 per session under the “pay-as-you-go” billing model introduced in 2026. The fee is shared between banks and telecommunications operators following the resolution of long-standing disputes over USSD service payments.
Under the arrangement, customers are charged directly whenever they initiate USSD transactions such as funds transfers, airtime purchases or bill payments.
Idowu, however, warned that while the new billing structure has stabilised the ecosystem, affordability remains a major concern for millions of Nigerians who depend on USSD as their primary gateway to financial services.
He argued that Nigeria’s digital divide should be viewed as an opportunity gap, stressing that affordability, accessibility and public trust must remain central to the country’s digital transformation agenda.
The Remita executive urged regulators, financial institutions and telecommunications companies to harmonise policies and develop pricing models that preserve USSD as an affordable and reliable financial service channel.
He also called for increased investment in digital infrastructure, cybersecurity and initiatives that promote financial inclusion across the country.
According to Idowu, although Nigeria’s digital economy is projected to reach $18.3 billion by the end of the year, millions of citizens remain excluded because of inadequate broadband infrastructure, high connectivity costs and limited access to digital services.
He noted that while Nigeria has built one of Africa’s fastest-growing fintech ecosystems and gained global recognition for innovation, significant disparities remain between urban and underserved communities in access to digital financial services.
The Issues
Rising USSD charges could discourage low-income Nigerians from accessing formal financial services.
Affordability remains a key challenge despite improvements in the USSD payment ecosystem.
Uneven broadband penetration and limited internet access continue to widen Nigeria’s digital divide.
Stronger collaboration among regulators, banks and telecom operators is needed to sustain financial inclusion.
Increased investment in digital infrastructure and cybersecurity remains essential to support inclusive digital growth.
What’s Being Said
Lanre Idowu, Divisional Head of Financial Industry Partnerships at Remita, said rising USSD charges threaten one of Nigeria’s most effective financial inclusion tools by making basic banking services less affordable for vulnerable users.
He called on regulators, banks and telecommunications operators to review pricing models and strengthen collaboration to ensure USSD remains an accessible, low-cost channel for financial services.
Idowu also stressed the need for greater investment in broadband infrastructure, cybersecurity and digital inclusion initiatives to ensure more Nigerians benefit from the country’s expanding digital economy.
What’s Next
Stakeholders in the banking and telecommunications sectors are expected to continue discussions on balancing the sustainability of the USSD ecosystem with affordability for consumers. Regulators may also consider policy measures aimed at strengthening digital inclusion while expanding broadband access and improving financial service delivery to underserved communities.
Bottom Line
USSD remains a vital banking channel for millions of Nigerians without smartphones or reliable internet access. Maintaining affordable transaction costs will be critical to preserving the country’s financial inclusion gains and ensuring that digital financial services remain accessible to all.
