In a move that signifies a significant leap towards financial inclusion and a catalyst for innovation, the Nigerian Inter-Bank Settlement System (NIBSS) has unveiled a revolutionary reduction in the electronic transaction processing fee for instant payments. Starting July 1st, 2023, the fee will undergo a remarkable decrease from N5 to N3.75k, marking a transformative shift in the digital payment landscape. Premier Oiwoh, the visionary Managing Director/Chief Executive Officer of NIBSS, along with Ngover Ihyembe-Nwankwo, the esteemed Executive Director of Business Development, jointly announced this groundbreaking decision through an official communiqué dated May 31, 2023.
The unprecedented reduction in electronic transaction fees serves as a testament to NIBSS' unwavering commitment to empowering financial inclusion and fostering an environment conducive to innovative breakthroughs. In addition to the fee reduction, NIBSS is spearheading a groundbreaking volume-driven discount regime, which will be unveiled in the coming weeks and promises further benefits for users of the system.
The rationale behind this momentous fee reduction lies in the pursuit of dismantling barriers that have hindered financial inclusion across Nigeria. With a substantial segment of the adult population still unbanked and deprived of access to electronic financial services, the high costs associated with basic financial activities have posed significant challenges. By significantly reducing the expense of electronic transfers by nearly 35%, NIBSS aims to spur widespread adoption of digital transactions, facilitate broader access to financial services, and create an inclusive financial ecosystem that empowers all Nigerians.
As the vanguard of Nigeria's financial system, NIBSS plays a pivotal role in establishing seamless interoperability among diverse stakeholders. By providing a robust and secure platform, NIBSS enables streamlined electronic fund transfers, expedites document processing, and facilitates a myriad of transactions between banks, mobile payment operators, non-banking financial institutions, government entities, and their customers.
The timing of this paradigm-shifting decision coincides with an exponential surge in electronic transaction volumes experienced by financial institutions. This surge has been driven by the growing reliance on digital channels, spurred in part by recent policy developments in the financial sector. While transaction fees constitute a significant portion of banks' non-interest income, the reduction in NIBSS fees is not expected to have a direct impact on the fees charged by banks to their customers.
Simultaneously with the fee reduction, NIBSS is actively developing an innovative volume-driven discount scheme that will complement the revised pricing structure. The intricate details of this pioneering initiative will be disclosed in the coming weeks, further solidifying NIBSS' commitment to driving financial inclusion and fostering a culture of innovation.
This monumental decision by NIBSS to substantially reduce electronic transaction processing fees heralds a new era in Nigeria's banking landscape, characterized by heightened financial inclusion and a thriving environment for innovative solutions. By making digital transactions more affordable and accessible, NIBSS aims to unleash the full potential of Nigeria's economy, empowering individuals and businesses alike to participate fully in the digital financial ecosystem.
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