The Nigerian Inter-Bank Settlement System (NIBBS), Nigeria’s largest payment infrastructure has reduced its transaction processing fee for NIBBS Instant Payment from N5 to N3.75k to drive financial inclusion and support innovation in the country.
This was contained in a letter signed by NIBBS Executive Officer Premier Oiwoh and the Executive Director of Business Development Ngover Ihyember-Nwankwo dated May 31, 2023, to address payment solutions and service providers.
According to the document, the management of Nigeria Interbank Settlement System had approved a further reduction on NIBBS Instant Payment from N5 to N3.75k effective July 1, 2023.
NIBSS said, “In line with our commitment to drive financial inclusion and support innovation, we are also embarking on a volume-driven discount regime to complement this fee reduction, and further details will be communicated in due course.”
NIBBS is the central switch and enables transfers in Nigeria, and the NIP ensures that anyone can get a transferred amount instantly.
According to NIBSS, cashless transactions increased by 44.84% to N126.73 trillion in the first quarter of 2023 from N87.49 trillion in 2022.
NIBBS stated on its website that NIBBS Instant Payments (NIP) is an efficient person-to-person, person-to business and business-business instant value to beneficiaries. Banks charge a minimum of N10 as NIP fees.
The move comes as banks and other financial institutions report a surge in electronic transaction volumes following heightened reliance on the channel due to the failed Central Bank of Nigeria naira redesign policy.