The Nigerian Inter-Bank Settlement System (NIBSS) has announced a reduction in its transaction processing fee for NIBSS Instant Payment.
Starting from July 1, 2023, the fee will be reduced from N5 to N3.75k.
This information was conveyed in a letter which was sent to payment solution service providers.
The purpose of the fee reduction, as stated by the country’s central payment gateway, is to promote financial inclusion and support innovation.
The letter, signed by the Managing Director/Chief Executive Officer, Premier Oiwoh, and the Executive Director, Business Development, Ngover Ihyembe-Nwankwo, stated, “We are pleased to inform you that Nigeria Inter-Bank Settlement Plc’s board and management have approved a further reduction in the transaction processing fees for NIBSS Instant Payment, from N5 to N3.75k, effective July 1, 2023. In addition to this fee reduction, we will also be implementing a volume-driven discount program, which will be communicated in due course, to complement our commitment to driving financial inclusion and supporting innovation.”
This decision comes in response to a recent increase in electronic transaction volumes, as more people have relied on digital channels due to the unsuccessful naira redesign policy implemented by the Central Bank of Nigeria. According to the NIBSS, cashless transactions rose by 44.84% to N126.73tn in the first quarter of 2023, compared to N87.49tn in the same period of 2022.
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About NIBSS
The NIBSS is an organization that provides infrastructure for the Nigerian banking industry. It facilitates financial transfers within the country, and NIBSS Instant Payment ensures the instant transfer of funds to recipients. On the NIBSS website, it is described as “an efficient person-to-person, person-to-business, and business-to-business funds transfer service that guarantees instant value to beneficiaries.
It was established in 1993 and is owned by the Central Bank of Nigeria (CBN) in collaboration with all licensed banks in Nigeria. NIBSS serves as a pivotal backbone for electronic payments and settlements in the country.
The primary objective of NIBSS is to foster the development and adoption of innovative and efficient payment systems in Nigeria. It plays a crucial role in facilitating interbank transactions, clearing and settlement of payments, and the development of electronic payment channels. NIBSS enables the seamless transfer of funds between banks, enhances the efficiency of payment systems, and promotes financial inclusion in the country.
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Key services and initiatives offered by NIBSS
NIBSS Electronic Fund Transfer (NEFT): NEFT is a system developed by NIBSS to enable the transfer of funds between banks in Nigeria. It provides a secure and reliable platform for interbank transfers, allowing individuals, businesses, and organizations to make payments or transfer funds electronically.
NIBSS Instant Payment (NIP): NIP is an electronic payment system introduced by NIBSS to facilitate the instant transfer of funds between banks in Nigeria. It enables real-time, 24/7 interbank transactions, making it possible for individuals and businesses to send and receive money immediately.
Central Pay: Central Pay is an innovative payment platform launched by NIBSS to simplify the payment process for customers. It provides a convenient and secure way to make payments using different channels such as cards, mobile phones, and the internet. Central Pay promotes cashless transactions and enhances financial inclusion.
BVN (Bank Verification Number): NIBSS is responsible for the implementation and management of the BVN system in Nigeria. BVN is a unique identification number issued to every bank customer in the country. It serves as a means of verifying the identity of individuals in the banking system and helps to reduce fraud and improve security.
NIBSS Electronic Payment Portal (NIBSS-EP): NIBSS-EP is an online platform developed by NIBSS to facilitate the collection and payment of various fees, levies, and taxes on behalf of government agencies and organizations. It provides a centralized portal for individuals and businesses to make payments electronically, reducing the need for physical cash transactions.
NIBSS continues to play a vital role in the development and advancement of the Nigerian payment system. By providing robust infrastructure, innovative solutions, and secure platforms, NIBSS contributes to the growth of electronic payments, financial inclusion, and the overall efficiency of the Nigerian banking industry.
