December 21, (THEWILL) — The renewed vigour by financial technology (fintech) firms to penetrate the nooks and crannies of Nigeria, especially the countryside, has tremendously reconfigured the nation’s payment system. And this has a far-reaching impact on the economy of the countryside dwellers.
This development is driven by the Nigeria Inter-Bank Settlement System, NIBBS which provides the infrastructure support that drives the financial services industry, especially the payment systems, towards advancing business opportunities.
NIBSS offers the electronic payment framework that enables same-day clearing and settlement of inter-bank transfers, instant payment transactions, and various financial operations in Nigeria. It functions as a central switch, allowing interoperability among banks and other financial entities to process payments instantly, securely, and efficiently.
In a way, the firm is engaged in a silent revolution of the financial services sector which is “hidden” from the prying eyes of the public. This is reinforced by its focus on problem-solving initiatives, resulting in the quality of digital financial services being enjoyed in all parts of the country.
The transformation
In the past, the inability of the rural dwellers to enjoy satisfactory financial services transactions, especially the payment systems, collectively added to the frustration of cash and fuel scarcity that used to occur during the festive periods.
According to the Managing Director/CEO, Premier Oiwoh, NIBBS upgrades its systems continuously. A reason for this is that NIBSS was established to carry on business as a service-oriented institution providing mechanisms for problem-solving innovations.
He explained at a media parley in Lagos that with over 65 million Bank Verification Numbers (BVN) holders (at that time) enjoying the products offered by the financial services institutions, NIBSS plays a major role in facilitating the technology-based innovations that make for seamless financial transactions.
Data from NIBSS shows that the value of instant payment transactions has seen substantial growth over the past five years, bolstered by improvements in digital infrastructure and more reliable transaction networks.
Findings revealed that Nigeria’s e-payment value in Q3 2025 showed significant growth over Q3 2024, with total electronic transactions soaring, driven by NIBSS Instant Payments (NIP) and Point-of-Sale (PoS) systems.
This reflects strong adoption of alternative payment systems and increased digital confidence. Despite some monthly fluctuations, total value jumped from around N280 trillion in August 2024 to N384 trillion by July 2025, with PoS alone seeing massive YoY jumps
Fintechs on rampage
A report from the Fintech Association of Nigeria (FintechNGR) in March 2025 indicates that fintech companies remain the cornerstone of Nigeria’s shift towards a cashless economy, delivering affordable, real-time financial services to millions, including those in the informal sector.
Services such as Opay, Moniepoint, PalmPay, and Paga have expanded digital access for traders, artisans, and transport workers who were previously excluded by the traditional banking system. The association emphasized that the rapid expansion of agency banking has further facilitated this transition.
The association emphasised that the rapid expansion of agency banking networks, mobile money agents, and interoperable wallets has been instrumental in bridging the financial divide between urban and rural regions, greatly facilitating transaction growth and fostering financial inclusion.
The persistent rise in digital transactions carries significant implications for fiscal transparency, financial inclusion, and the effectiveness of policies. Analysts note that as a larger volume of payments moves online, monitoring liquidity flows becomes easier, thereby enhancing governmental oversight and improving the efficiency of revenue collection and the execution of monetary policy.
Countryside shift
In a major attitude shift, the majority of Nigeria’s rural areas are booming with digital banking and e-payment services to ease the frustrations of spending long hours in the bank where their ATM terminals are equally not enough to meet the needs of the people.
For the first time in many years, rural communities are witnessing idle bank ATM terminals, yet businesses have boomed on active, reliable digital payment transactions, especially during the Yuletide.
Petrol stations, public transport operators (like the bus, motor-cycle and tricycle), petty traders, market women who sell soup ingredients, among others have embraced digital payments. Roadside mechanics, vulcanizers, itinerant hawkers and car wash operators accepted e-payment through transfer or PoS.
Countryside bank branches which used to be a source of nightmare because of the mammoth crowd, are now practically deserted as people deal with e-payment options.
NIBSS’ exploits
Recently, the global economy has focused on the Nigeria Inter-Bank Settlement System (NIBSS). This attention stems from the energy and dedication the organisation has shown in promoting the digital payment system across Africa.
Industry stakeholders and experts have acknowledged NIBSS’s role as a quiet game-changer in transforming the nation’s financial inclusion strategy. In this capacity, the organisation positions itself to play a significant role in the execution of the landmark African Continental Free Trade Area (AfCFTA) initiative through a seamless payment system.
Endless Milestones
In 2025, the world experienced a surge of digital innovation narratives from NIBSS. These are significant accomplishments that are celebrated quietly yet have remarkable effects that have prominently placed Nigeria on the global stage.
In November 2025, NIBSS became the first payment system in Africa to reach a mature inclusivity level on the AfricaNenda Inclusivity Spectrum. This recognition highlights its efforts in creating payment systems that are accessible and cater to the needs of all users, including the unbanked.
It also includes features that enhance real-time digital access, robust dispute resolution, and consumer protection. Achieving this “Mature” rating aligns Nigeria’s payment infrastructure with international standards for excellence.
This achievement was revealed during the launch of the State of Instant Payment Systems (SIIPS) 2025 report in Eswatini (Southern Africa) on Thursday, November 13, 2025, with Nigeria receiving a standing ovation from bankers, investors, and other participants at the venue.
This unique infrastructure, National Payment Stack (NPS), launched in June 2025, is “powered by the Nigeria Inter-Bank Settlement System (NIBSS) to unify, modernise, and future-proof digital payments in Nigeria.”
In response to this significant milestone, Oiwoh remarked that the journey had been a long time in the making.
He said, “The establishment of the industry dispute resolution platform, initiated by the Central Bank of Nigeria (CBN), was instrumental in achieving this milestone,” further noting that “these measures have significantly decreased the number of disputes within the industry.”
One fact emerged from the scenario. While the initial motivation for PoS business was the lack of bank ATMs in some areas, this has shifted to the lack of cash in available ATMs and the need to make cash available to people became the priority of the emerging fintechs.
Notwithstanding the boom, the fintech firms are not relenting in their push for aggressive penetration into the countryside, resulting in what observers now refer to as angry fintechs on rampage.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
