- NIBSS has asked banks to remove non-deposit payment service providers from outward transfer channels
- The decision was reached due to concerns about the affected financial institutions holding customer funds
- There are 32 financial companies affected, and Fintechs like Paga and OPay have come out to clarify they're licensed Mobile Money Operators
Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
Nigeria Inter-Bank Settlement System (NIBSS) recently directed banks to delist non-deposit payment service providers from the instant payment (NIP) outward transfer channels.
The directive was given in a circular dated December 7, 2023, and signed by Ngover Ihyembe-Nwankwo, executive director, business development NIBSS.
In the circular, NIBSS noted that the directive seeks to address regulatory concerns regarding non-deposit-taking financial institutions (NDTFIs) holding customer funds.
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However, the affected financial institutions are not restricted from receiving inward transfers.
List of financial institutions affected with NIBSS directive?
According to the circular the non-deposit taking financial institutions affected include Switching Companies (Switches), Payment Solution Service Providers (PSSPs) and Super Agents (SA).
NIBSS told the banks:
"The listed beneficiary institutions on your NIP funds transfer channels contravenes the CBN Guidelines on Electronic Payment of Salaries, Pensions, Suppliers and Taxes in Nigeria dated February 2014.
“For clarity, Switches, PSSPs and SAs may process outward transfers as inflows to banks but are not to receive inflows as their licenses do not permit them to hold customers’ funds.
“Consequent on the above, kindly delist all switches, PSSPs and SAs from your NIP outward transfer channels only (not inwards).”
Opay, Paga, Palmpay reacts
Following the announcement there some reports had mentioned fintechs such as Kuda, Opay., Palmpay, and PiggyVest as some of the companies affected.
In different press statements, the fintechs have come out to deny the reports of being affected by the announcement.
One of the reactions posted on X by Tayo Ovioso, chief executive officer (CEO), Paga, reads:
“My attention was drawn to articles wrongly stating Paga is affected by the notice to remove PSSPs from receiving transfers.
“Paga is a licensed Mobile Money Operator, which allows us to hold deposits, unlike PSSPs. As you can see from the list, Paga is not on there.”
Similarly, Opay assured customers that the firm is also not included in the restriction.
The company said in a statement posted on X.
“We wish to state that OPay is not affected by the recent circular published by NIBSS. The focus is on Payment Service Solution Providers, Switches and Super Agents.
“OPay is a Mobile Money Operator (MMO) licensed by the CBN and insured by the NDIC. Your funds are safe and secure with OPay.”
Palmpay also wrote:
"Please disregard any false information on the NIBSS notice, as we are committed to ensuring the utmost security of your funds."
Here is a full list of companies ban from electronic transfer by NIBSS
- Xpress payments
- Accelerex Network
- Itex Integrated Services Limited
- Innovectives Kesh
- Flutterwave Technology Solutions Limited
- Interswitch Limited
- First Apple Limited
- 3Line Card Management Limited
- Paystack Payments Limited
- Team Apt
- Kadick Integration Limited
- Venture Garden Nigeria Limited
- Arca Payments Company Limited
- QR Payments
- Cyberspace Limited
- Vas2nets Limited
- Microsystems Investment and Development Limited
- Bud Infrastructure Limited
- Capricorn Digital
- NetApps Technology Limited
- SPay Business
- Yello Digital Financial Services
- Nomba Financial Services Limited
- Woven Finance
- Paysure Technologies Limited
- Leadremit Limited
- Irofit Technologies Limited
- Nip Virtual Bank
- NibssUSSD Payments
NIBSS to delist Opay, Moniepoint, Kuda, Others? Tinubu's aide reveals fact
Earlier Legit.ng reported that President Bola Tinubu's special adviser for social media, Dada Olusegun, has debunked the reports claiming the Nigeria Interbank Settlement System Plc (NIBSS) plans to delist money transfer banks, including Opay, Kuda, Moniepoints, from transfer channel.
In a tweet on Thursday, December 7, the presidential aide said that the report is fake while urging the public to desist from spreading disinformation because it could lead to panic and hurt businesses.
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