NIBSS Directive: Delist Non-Deposit Financial Institutions from Transfers

In a recent circular dated December 5, 2023, the Nigeria Inter-Bank Settlement System (NIBSS) has issued a directive to banks, urging them to delist Payment Solution Service Providers, Switches, and Super Agents from their outward payment or transfer list. The move is in accordance with the Central Bank of Nigeria’s (CBN) guidelines on electronic payments.

The circular, with reference number NIBSS/BD/NI/PO/005/051223, emphasized that including non-deposit-taking financial institutions as beneficiaries on NIP (NIBSS Instant Payment) funds transfer channels goes against the CBN’s guidelines on electronic payment of salaries, pensions, suppliers, and taxes in Nigeria, dated February 2014.

NIBSS has called on banks to comply with the regulatory framework, ensuring that only eligible and authorized institutions are listed as beneficiaries on fund transfer channels. The directive aims to streamline the payment system and uphold the integrity of electronic transactions within the Nigerian financial landscape.