Joy Agwunobi
Nigeria’s Interbank Settlement System (NIBSS) has unveiled plans to eliminate transfer fees on its NIBSS Instant Payment (NIP) platform by 2026, a move designed to accelerate the country’s transition from a cash-heavy economy to a smart, digitally driven financial system.
Premier Oiwoh, managing director and chief executive officer of NIBSS, announced the initiative at the Globus Bank Fintech Summit 2025 in Lagos, where he delivered a keynote address titled “From Cashless to Smart Economies: Shaping the Next Frontier of Financial Innovation.”
According to Oiwoh, the initiative will replace the current per-transaction fee with a subscription-based model, effectively making digital transfers free at the point of use. The aim, he explained, is to remove the biggest barriers preventing millions of Nigerians from adopting digital transactions cost and lack of perceived value.
“Our biggest competition is not fintechs or banks; it is cash on the street,” Oiwoh said, adding that “A man with ₦100 or ₦1,000 will avoid digital transactions if fees make them more expensive than cash. By next year, we will begin the process of eliminating NIP fees entirely, moving to zero cost and a subscription model. This will unlock innovation and encourage adoption.”
Building the Case for a Smart Economy
The NIBSS MD stressed that Nigeria must take deliberate steps to strengthen its national payment infrastructure, foster interoperability, and enhance resilience if it is to truly build a smart economy. He pointed to India and China as examples of countries that implemented coordinated national strategies to drive financial inclusion, warning that Nigeria’s siloed approach—where banks, fintechs, and regulators often work separately could limit progress.
“It’s not about opening a bank account. Beyond that, people must be economically included. Until we have a deliberate national action plan led at the highest level of government covering infrastructure, devices, and connectivity;our financial inclusion will continue to exclude many,” he noted.
Oiwoh added that customer trust and stability must remain at the heart of payment innovation: “The customer should not suffer. Nigerians deserve reliability and solid stability in digital payments.”
Highlighting recent achievements, Oiwoh revealed that Afrigo, Nigeria’s national card scheme launched in 2023, has processed over ₦70 billion worth of transactions in 2025 alone, with more than one million cards in circulation. Uniquely, Afrigo offers instant credit on point-of-sale transactions, a feature he described as a global first.
He further disclosed that the upcoming multipurpose national ID card, to be rolled out by the National Identity Management Commission (NIMC), will carry the Afrigo payment rail, allowing millions of Nigerians to access financial services directly through their national identification card.
Oiwoh used the platform to call for greater investment in cybersecurity and fraud prevention, warning that insider collaboration remains one of the most dangerous threats facing digital payments.
“There is no fraud in this country today that we don’t understand how it happened,” he said, referencing the NIBSS Hawk platform, which has foiled several major fraud attempts.
He cautioned financial institutions against placing profitability above compliance, warning that such negligence exposes the system to devastating risks.
“My appeal is that we need to invest more in cybersecurity and take every breach more seriously,” Oiwoh said. “There is no fraud that has occurred in this country that we don’t understand how it happened. We know. And while I am grateful to the security services for apprehending some major actors behind the scenes, the truth is negligence remains a big concern.”
He expressed particular worry about the certification process for banking applications, alleging that some Payment Card Industry Data Security Standard (PCI DSS) certifications are being acquired without proper checks.
“I have asked bank CEOs: who certifies the individuals selling these applications across the industry? Some of these certifications are purchased without any real compliance work being done. When you trace most fraud cases, you see the gaps immediately,” he stressed.
According to him, tackling fraud requires a two-pronged approach: first, eliminating technical vulnerabilities within systems, and second and even more critically addressing the “people factor.”
“There is no bank that has been hit by fraud without an insider being involved. As we deepen digital adoption, we must build robust systems that close vulnerability gaps and mitigate against insider risks,” he warned.
Collaboration, innovation, and the road ahead
Calling for stronger collaboration across the financial ecosystem, Oiwoh stressed that the real competition is not among banks, fintechs, or payment service providers, but against the entrenched dominance of cash in Nigeria’s economy.
“We need to work harder and put the right infrastructure in place. However, this must be pursued at the governmental level because it goes beyond what the industry alone can achieve,” he said.
He emphasised the importance of deepening partnerships across the value chain, stating “Collaboration with regulators, fintechs, and other partners is critical. Many of the initiatives we have successfully implemented in Nigeria can be replicated across the African continent,” Oiwoh noted.
Highlighting the growing regional interest in Nigeria’s fintech innovations, he emphasized that NIBSS cannot achieve these goals alone.
“There is a significant opportunity for collective action across the continent. By working together, we can not only reinforce Nigeria’s fintech ecosystem but also extend its impact and replicate these successes in other African countries,” he said.
Oiwoh also welcomed emerging innovations such as QR code payments, contactless solutions (NFC), and biometric authentication, which he described as key enablers for scaling digital adoption.
Backed by government-led initiatives including geo-tagging of payment infrastructure, fintech demo days, and regulatory support for innovative payment rails, he expressed optimism that Nigeria is on the verge of evolving into a smart economy powered by digital transactions.
He noted that payments are not the destination, but rather the foundation for building a vibrant digital economy where innovation, inclusion, and trust drive prosperity.
