The Nigeria Inter-Bank Settlement System (NIBSS) has instructed banks to remove certain financial institutions that don’t take deposits from their money transfer systems. These include Switching Companies, Payment Solution Service Providers, and Super Agents.
NIBSS in a circular stated that these institutions on banks’ transfer systems break the rules set by the Central Bank of Nigeria for electronic payments. While these institutions can send money to banks, they’re not permitted to hold funds from customers.
This directive might impact platforms like Opay, Palmpay, Carbon, and other fintech companies used in Nigeria.
The rule implies these institutions can send money out to banks but cannot receive money in.
They could try applying for appropriate licenses to continue their operations.
A part of the circular read,
“This is to alert you that including non-deposit-taking financial entities like Switching Companies, Payment Solution Service Providers, and Super Agents as beneficiary institutions on your NIP funds transfer channels goes against the CBN Guidelines on Electronic Payment of Salaries, Pensions, Suppliers, and Taxes in Nigeria issued in February 2014.”
