In a significant move, the Nigerian Inter-Bank Settlement System (NIBSS) has announced a substantial reduction in electronic transfer fees. Effective July 1, 2023, the transaction processing fee for NIBSS Instant Payment has been slashed from N5 to N3.75k.
The decision, as revealed in a letter addressed to payment solution service providers, is poised to have a positive impact on the country’s financial landscape, News About Nigeria reports.
The letter, jointly signed by Premier Oiwoh, the Managing Director/Chief Executive Officer, and Ngover Ihyembe-Nwankwo, the Executive Director of Business Development, expressed the board and management’s satisfaction in approving the reduction.
The move is aligned with NIBSS’s commitment to drive financial inclusion and foster innovation in the industry. Furthermore, the NIBSS intends to introduce a volume-driven discount regime to complement the fee reduction, with further details to be communicated in due course.
NIBSS is a vital facilitator of financial transfers in Nigeria, with its NIBSS Instant Payments ensuring swift and seamless transactions for beneficiaries.
Described on the NIBSS website as an efficient service for person-to-person, person-to-business, and business-to-business funds transfers, NIBSS Instant Payments guarantee instant value delivery.
Presently, banks impose a minimum NIP charge of N10 on users. Efforts to reach Lilian Phido, Head of Corporate Communications at NIBSS, for confirmation and additional insights regarding the fee reduction were unfortunately unsuccessful.
Adedeji Olowe, the founder of Lendsqr, expressed skepticism regarding the impact of the fee reduction, suggesting that transfer fees are unlikely to decrease unless compelled by the Central Bank.
While opinions may differ on the potential outcome, this decision by NIBSS comes in the wake of a surge in electronic transaction volumes, primarily driven by increased reliance on digital channels following the failed Central Bank of Nigeria naira redesign policy.
According to the NIBSS, cashless transactions surged by an impressive 44.84% to reach N126.73tn in the first quarter of 2023, compared to N87.49tn during the corresponding period in 2022.