The Nigerian Inter-Bank Settlement System (NIBSS) is vital for Nigeria’s financial infrastructure. It helps with electronic payments and encourages banking sector innovation. This blog post will discuss how NIBSS helps with financial inclusion in Nigeria.
An Overview of Nigerian Interbank Settlement Systems (NIBSS)
The NIBSS) is owned and licensed by all licensed banks, including the Central Bank of Nigeria. NIBBS was incorporated in 1993 but didn’t commence operations until June 1994. Since then, it has built top-notch systems for processing bank transfers. They did this to remove the difficulties experienced with interbank transfers.
NIBBS is also in charge of the Nigeria Automated Clearing Systems (NACS). NACS manages the electronic clearing of paper-based items like cheques, electronic transfers, debits, and credits. NIBBS recently got new technology to run the Nigeria Central Switch (NCS). They did this at the instance of the Bankers’ Committee.
Board Members of the Nigerian Interbank Settlement System Plc (NIBSS)
- NIBSS board comprise the following members:
- Deputy Governor of the central bank of Nigeria as the chairman
- Representatives from different banks as directors, and executive directors
- A CEO from one of the bank representatives, who heads the organization.
What Are the Functions of NIBSS?
The official functions of NIBBS, according to their official release, are:
- To carry on business as a service-oriented institution. This will provide the mechanism for same-day clearing. Also, it will help in settlement of inter-bank transfers and payments;
- To provide infrastructure for the automated processing and settlement of transactions. This will be between banks acting on their account. This includes deposit placements, treasury bills and transaction naira settlement
- To start and develop an integrated nationwide network. This can be electronic or paperless payments, funds transfer and settlement of transactions.
- To improve the efficiency of funds transfers in general.
Nigerian interbank settlement system also offers sub-services like:
- NIBBS instant payment
- NIBBS E-Bills pay
- Payment terminal service aggregator
- Mobile payment interoperability
- Corporate lounge
- Central payment gateway
- Account verification service
- QR code payment standard
For more insight into their different products and services, you can visit their official page at www.nibss-plc.com.ng
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Conclusion
The establishment of the Nigerian Settlement Systems has made interbank settlement smoother. This has been true, especially since the Nigeria Central Switch (NCS) was made. With the current progress rate of electronic transactions, things can only get better.
