NIBSS revolutionises banking, transfer charges set to disappear
Agency
In a groundbreaking move that could reshape Nigeria’s financial landscape, the Nigeria Interbank Settlement System (NIBSS) has announced plans to abolish transfer charges on its Instant Payment (NIP) platform. The revelation came from Premier Oiwoh, Managing Director and Chief Executive Officer of NIBSS, during his keynote address at the Globus Bank Fintech Summit in Lagos.
Oiwoh’s announcement drew wide applause across the fintech and banking sectors, with many describing it as a bold step towards deepening financial inclusion and accelerating Nigeria’s journey to a fully cashless economy. According to him, the era of paying fees for bank transfers may soon be over by next year, Nigerians could enjoy zero-cost digital transactions.
Pushing Nigeria towards a cashless future
Highlighting the dominance of cash in Nigeria’s economy, Oiwoh emphasised that the real competition isn’t among banks or fintech companies, but against physical currency itself. “When you remove transaction fees, digital payments instantly become more attractive to millions of everyday Nigerians,” he remarked.
The NIBSS chief noted that the initiative is not merely about saving consumers a few naira but about transforming the country’s financial culture. By eliminating transfer costs, more Nigerians, especially those in rural and informal sectors will find digital transactions appealing and accessible.
Trust, technology, and collaboration
Security remains central to this vision. Oiwoh referenced the NIBSS Hawk platform, which has successfully prevented several fraud attempts, as a testament to the institution’s commitment to safeguarding digital transactions. He warned against prioritising profits over compliance, stressing that one major breach could erode years of public trust.
He also called for greater collaboration within the financial ecosystem, urging banks, fintechs, and regulators to see one another as partners rather than rivals. “Our common enemy is cash,” he said pointedly, underscoring the need for shared innovation and trust-building.
Fintech growth and a smarter economy
Celebrating the growing strength of Nigeria’s fintech sector, Oiwoh cited the success of AFRIGO, the national card scheme, which has processed over ₦70 billion in transactions this year alone. With over one million cards already in circulation, AFRIGO is fast becoming a cornerstone of Nigeria’s payments infrastructure.
He also revealed that the forthcoming multipurpose National ID card will integrate AFRIGO’s payment system, enabling millions of Nigerians to access banking services directly. Looking ahead, NIBSS plans to expand into innovative technologies such as QR payments and biometric verification, positioning Nigeria for a “smart economy” akin to global leaders like India and China.
A new era for banking
The financial shake-up is already inspiring ripple effects. Sterling Bank recently announced it is scrapping account maintenance fees, signaling a broader industry shift towards customer-friendly, low-cost banking. Meanwhile, with the Federal Mortgage Bank of Nigeria preparing to operate as a full-fledged commercial bank by 2026, competition in the sector is set to intensify.
The message is clear: the future of banking in Nigeria is digital, inclusive, and fee-free. As the nation edges closer to a cashless society, both consumers and institutions stand to gain from a faster, safer, and more transparent financial ecosystem.
The NIBSS initiative marks a defining moment in Nigeria’s digital finance journey. By scrapping transfer charges, the system removes one of the last barriers to mass adoption of cashless payments. The move not only aligns with global trends but could also stimulate economic efficiency, drive fintech growth, and foster deeper trust between financial institutions and citizens. If implemented effectively, Nigeria may finally take a decisive leap from a cash-driven culture to a smart, digital-first economy.
