The Nigerian Inter-Bank Settlement System has slashed its transaction processing fee for NIBSS Instant Payment from N5 to N3.75k effective July 1, 2023.
This is according to a letter, dated May 31, 2023, addressed to payment solution service providers. The central payment gateway in the country stated that it was reducing its fees to drive financial inclusion and support innovation.
The document which was signed by the Managing Director/Chief Executive Officer, Premier Oiwoh, and the Executive Director, Business Development, Ngover Ihyembe-Nwankwo, read in parts, “We are delighted to inform you that the board and management of Nigeria Inter-Bank Settlement Plc has approved a further reduction in the transaction processing fees on NIBSS Instant Payment from N5 to N3.75k effective July 1, 2023.
“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.”
The NIBSS enables financial transfers in the country, and the NIP is what ensures that anyone can get a transferred sum instantly.
On its website, the NIBSS stated, “NIBSS Instant Payments is an efficient person-to-person; a person-to-business; business-to-business funds transfer service that guarantees instant value to beneficiaries.”
Currently, banks charge a minimum of N10 as NIP charges. Efforts to reach the Head, Corporate Communications, NIBBS, Lilian Phido, to confirm and provide more insight on the move proved abortive.
According to the founder of Lendsqr, Adedeji Olowe, transfer fees were unlikely to reduce despite the NIBSS’s best intentions.
He said, “The truth is, the impact would be nothing except the Central Bank compels banks to reduce pricing.”
This move is following a recent surge in electronic transaction volumes following increased dependence on the channel following a failed Central Bank of Nigeria naira redesign policy. According to the NIBSS, cashless transactions increased by 44.84 per cent to N126.73tn in the first quarter of 2023 from N87.49tn in the corresponding period of 2022.