Nigeria’s Interbank Settlement System (NIBSS) is preparing to make a bold shift in the nation’s digital payments landscape. Premier Oiwoh, Managing Director and CEO of NIBSS, announced plans to eliminate transfer fees on the NIBSS Instant Payment (NIP) platform, signalling an aggressive push to wean Nigerians off cash-heavy transactions.
Speaking at the Globus Bank Fintech Summit 2025 in Lagos, themed “From Cashless to Smart Economies: Shaping the Next Frontier of Financial Innovation”, Oiwoh revealed that the current pay-per-transfer model would transition to a subscription-based structure.
“By next year, we’ll be starting a program towards the complete elimination of the NIP fee, making it zero cost into a subscription model. The general idea is to promote innovation around it,” he said.
Tackling the Real Competition: Cash
For Oiwoh, the central challenge to digital adoption isn’t rival fintechs or banks—it’s cash in circulation. “Our biggest competition is not fintechs or banks; it is cash on the streets. Eliminating fees will make digital payments more attractive to everyday Nigerians,” he stressed.
Industry watchers note that scrapping transfer fees could lower barriers for millions who remain skeptical about digital transactions, especially low-income earners who rely on cash for daily trade.
Strengthening Infrastructure for Inclusion
Beyond fee elimination, Oiwoh emphasized that Nigeria’s journey toward a smart economy depends on stronger national infrastructure, interoperability, and resilience. This includes building systems capable of withstanding fraud, cyberattacks, and operational breakdowns—weak points that have historically plagued the country’s financial services.
He pointed to examples from India and China, where deliberate national strategies drove mass inclusion of the unbanked. By contrast, Nigeria’s ecosystem still operates in silos, lacking the coordination needed to scale financial inclusion. “Opening bank accounts without ensuring economic inclusion is insufficient,” he warned.
Aligning with Global Standards
Oiwoh also commended regulators, especially the Central Bank of Nigeria (CBN), for adopting standards like ISO 20022 messaging, which aligns Nigeria’s payment systems with global benchmarks. Such standards, he argued, are essential to building trust in Nigeria’s digital finance infrastructure and positioning the country for global competitiveness.
What It Means for Nigeria’s Digital Future
If successfully implemented, NIBSS’s zero-fee NIP model could become a catalyst for innovation, lowering transaction costs while spurring adoption of digital services. It may also push banks and fintechs to rethink their business models, shifting from transactional fees to value-added services.
The bigger question is whether Nigeria can rally the political will and industry coordination to match infrastructure reform with economic inclusion—ensuring that going “cashless” doesn’t just mean fewer notes in circulation, but greater dignity, access, and opportunity for Nigerians across the board.
