Implementation of USSD framework begins June 1, says CBN

The Central Bank of Nigeria (CBN) on Thursday released the regulatory framework for Unstructured Supplementary Service Data (USSD) for the financial system.

In a circular signed by Dipo Fatokun, director, banking and payments system department, the implementation of the framework is with effect from June 1, 2018.

The framework stated that financial Institutions providing  use  of  the USSD channel shall put  a limit of  N100,000.00 per  customer,  per  day  for transactions  as  may  be required.

However, customers desirous of higher limits shall  execute  documented indemnities with their banks or Mobile Money Operators (MMO)s.

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The  vast  applications  of  the  USSD  technology, in  terms  of  available  services  have raised  the  issue  of  the  risks  inherent  in  the  channel.

In  this  regard,  concerns  have  been  expressed  on  the  likely  exposure  of  CBN  approved  entities  to  the  possible breaching of the USSD accessed financial services in view of likely vulnerabilities in the technology and the ever growing threats.

The implementation in Nigeria has created  multiple  USSD  channels  to customers, thereby increasing their exposure to risk, without a common standard for all.

According to the regulator, the framework seeks   to establish   the   rules   and   risk   mitigation considerations when implementing USSD for financial services offering in Nigeria.

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HOPE MOSES-ASHIKE