Clickatell Partners With Central Bank to Bring Nigerians eNaira Banking

Unbanked Nigerians and those using a feature phone in the country will soon have access to eNaira banking services through an Unstructured Supplementary Service Data (USSD) channel.

Communications-Platform-as-a-Service (CPaaS) firm Clickatell is partnering with the Central Bank of Nigeria (CBN) to launch a USSD channel for the country’s eNaira central bank digital currency (CBDC), according to a Monday (Sept. 19) press release.

The move aligns with the country’s goal of advancing financial inclusion and ensuring that all Nigerians have access to basic banking. Nigerians can use the *997# short code to set up an eNaira wallet, where they can then check balances, transfer funds and buy airtime or data.

See also: Nigeria Aims for 8M eNaira Users as Crypto Adoption Grows

Launched in October 2021 by Nigerian President Muhammadu Buhari, the eNaira was Africa’s first central bank-backed digital currency. The hope was that it would increase remittances, encourage cross-border trade and assist the government with welfare payments.

It was also thought that the eNaira could help bring about financial inclusion and boost the country’s GDP by $29 billion over the next 10 years, according to the release.

“Introducing the USSD short code allows non-banked Nigerians, many of whom do not have smartphones, to access cashless banking services and is a big win for the stated goals of delivering meaningful financial inclusion,” said Uzo Nwani, Clickatell commercial director, West Africa. “Clickatell’s role in making this a reality has been one of the most important achievements of our engagements in Nigeria.”

Read more: How Lessons From Nigeria’s eNaira Rollout Can Guide Future of CBDCs in Africa

The USSD communications protocol is supported by 99% of Global System for Mobile (GSM) handsets and is important to people in developing communities. Per the release, services are much less expensive to provide and can be used without accessing the user’s SIM card.

“The USSD channel is a vital part of our journey towards realizing our financial inclusion vision,” said CBN Deputy Governor of Economic Policy Kingsley Obiora. “We see the eNaira as a leap forward in the evolution of money. Thus, CBN is working with partners who are committed to taking advantage of this new technology for continuous innovation towards delivering exciting new features.”

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