The Nigerian Inter-Bank Settlement System (NIBSS) just made a big announcement.
They have cut the price of online money transfers.
This price drop aims to encourage more people in Nigeria to use banking services.
However, banks in Nigeria still charge around N10 for an NIP transfer.
The NIBSS has lowered the fee for instant payments from N5 to N3.75k. They made this official in a letter sent out on May 31, 2023. The purpose of this price cut is to encourage more people to use banking services and to promote new ideas in the banking sector.
The new price will start in July. The Punch newspaper got a copy of the letter.
The letter was signed by Premier Oiwoh, the Chief Officer of NIBSS, and Ngover Ihyember-Nwankwo, the Business Development Director.
The letter said that the managers of the Nigeria Interbank Settlement System approved the price drop for instant payments from N5 to N3,75k starting on July 1, 2023.
NIBSS also made a statement.
“We are committed to encouraging more people to use banking services and promoting new ideas. To help with this, we are starting a discount system based on the volume of transactions. We will share more information about this soon.”
NIBSS is the central point for all transfers in Nigeria.
NIP, or NIBSS Instant Payments, is an effective system for people and businesses to transfer money instantly.
Banks charge at least N10 for NIP services.
There has been a significant increase in online transactions because people have been using cash less and less due to the failed redesign of the Nigerian naira by the Central Bank of Nigeria.
NIBSS shared that cashless transactions went up by 44.84% to N126.73 trillion in the first three months of 2023, from N87.49 trillion in 2022.
Justin Ihuoma, a financial expert, told voiceofnigeria.org.ng that the new prices might not be enough to encourage more people to use the NIP system. He also mentioned that it’s doubtful that banks will follow these new prices.
“Banks are more interested in their profits and might not follow these new prices, especially if the Central Bank of Nigeria doesn’t order them to do so. They have to follow a lot of rules and they listen to the Central Bank of Nigeria more than any other government agency,” Ihuoma explained.