The Nigerian Inter-Bank settlement system (NIBSS) has slashed the electronic transaction processing fee for instant payment from N5 to N3.75k.
The central payment gateway stated that the reduction in processing fees was necessary to drive financial inclusion and support innovation.
This new processing fee will take effect from July 1st, 2023, according to a letter dated May 31, 2023, which was signed by the managing director/chief Executive officer, Premier Oiwoh, and the Executive Director, Business Development, Ngover Ihyembe-Nwankwo,
Part of the letter reads, “We are delighted to inform you that the board and management of Nigeria Inter-Bank Settlement has approved a further reduction in the transaction processing fees on NIBSS Instant Payment from N5 to N3.75k which will be 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.”
As the Nigeria Central Switch, the NIBSS is responsible for the interoperability between the various players in the financial system.
Interoperability involves the ability of the various players, such as Banks, Mobile Payment Operators, Non-Banking Financial Institutions, Payment Terminal Providers, Card Acquirers, Government Institutions, etc., and their customers, to send, receive, and process funds, documents, and other instruments electronically through a common channel – NIBSS.
Investors King understands that the NIBSS Instant Payment is so far, the most innovative and revolutionary e-payment solution designed by NIBSS to service the banking industry.
Reports reveal that the reduction in processing fees 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 naira redesign policy.
It is understood that transaction fees are a critical revenue source for Nigerian banks. Meanwhile, experts suggest that the reduction in NIBSS fees would not affect the transaction fees bank charge their customers.