1997 Nissan Other Air Bag System

Based on the combination of observations, the most likely suspect is the clock spring coming apart. That's a wound-up ribbon cable inside a plastic housing under the steering wheel. You can replace it yourself, but while there are protections built in, you should avoid generating static electricity when you unplug the air bag as that can set it off if the connector's shorting bar is defective. Leave the ignition switch off too the whole time to avoid setting any diagnostic fault codes.

It's critical to have the steering system centered during the procedure because the new clock spring comes locked in the centered position. It can't tolerate being turned further in either direction than about half a turn more than the steering system will allow. Installing the steering wheel will unlock the clock spring and allow it to rotate.