NIBSS CEO Premier Oiwoh pushes for zero-fee digital transfers to displace street cash and drive Nigeria’s financial inclusion.
Nigeria’s digital payment ecosystem, long celebrated as one of the most advanced and responsive real-time structures in Africa, is on the verge of its most radical evolution yet. In a sweeping push to dismantle the remaining barriers to full financial inclusion, the Nigeria Inter-Bank Settlement System (NIBSS) has set its sights on a bold new target: eliminating user fees on instant digital money transfers.
The declaration, championed heavily by Premier Oiwoh, Managing Director and Chief Executive Officer of NIBSS, targets the underlying friction that keeps everyday commerce tied to physical banknotes. Speaking dynamically at recent high-level industry gatherings, including the unveiling of the Central Bank of Nigeria’s (CBN) ambitious framework as covered by BusinessDay, Oiwoh made it clear that traditional transactional charges are actively stifling the nation’s financial progress.
“Our biggest competition is not fintechs or banks; it is cash on the streets,” Oiwoh noted, arguing that financial data and payment mobile apps should be fundamentally zero-rated to ensure transactions remain frictionless for lower-income populations.
Aligning with Payments Vision 2028
The push for free instant transfers directly anchors the newly unveiled Nigeria Payments System Vision 2028 (PSV 2028). As reported by Premium Times, the apex bank’s overarching blueprint aims to formalize financial access for 95% of Nigerian adults within the next two years.
Currently, millions of unbanked or underbanked citizens view standard electronic banking fees, compounded by maintenance charges, SMS alerts, and data costs, as an unnecessary tax on their hard-earned capital. By shifting the flagship NIBSS Instant Payment (NIP) platform from a rigid per-transaction fee structure to a behind-the-scenes subscription or structural model, NIBSS aims to make digital channels inherently more attractive than paper cash.
Building the Next-Gen Rails
To transition seamlessly into a zero-fee environment without breaking the financial backbone of commercial banks and fintech operators, NIBSS is deploying entirely modernized underlying rails. The core of this transition relies on the National Payment Stack (NPS), an ISO 20022-compliant infrastructure designed to simplify high-volume transactions.
Simultaneously, the agency is scaling its domestic card scheme, Afrigo, alongside contactless solutions like the New Quick Response (NQR) code. By building alternative, low-overhead entry points that process payments instantly, the financial ecosystem reduces its dependence on expensive international hardware, driving down processing costs to zero.
Overcoming the Trust Deficit
While dropping user fees eliminates the financial barrier, NIBSS acknowledges that the ultimate battle for a cashless economy is won or lost on digital trust. As transactions surge, fraud prevention must scale proportionally to prevent consumers from running back to the physical safety of cash.
