January 12, (THEWILL) – Unknown to many people, the reinforced commitment by the Nigerian Inter-Bank Settlement System (NIBSS), towards advancing the country’s financial inclusion strategy, played a major role in the business boom that occurred in the rural areas during the recent festivities.
NIBBS provides the infrastructure support that drives the financial services industry, especially the payment systems, towards advancing business opportunities.
As an enabler, NIBSS is engaged in a silent revolution of the financial services sector which is “hidden” from the prying eyes of the public. This is accomplished through its mandate of focusing on problem-solving initiatives, resulting in the quality digital financial services being celebrated in the countryside.
Pains of the past
In the past, the inability of the rural dwellers to enjoy satisfactory financial services transactions, especially the payment systems, added to the frustration of cash and fuel scarcity during the festive period.
This resulted in loss of business opportunities, compelling many people to travel to the cities to access bank and network services in order to have something to show for their efforts.
The experience in the last Christmas and New Year season was remarkably different in a positive way.
THEWILL findings showed that the usual crowd that besieged the countryside bank branches was virtually non-existent this time.
For instance, the cluster of banks at the busy Ahiara Junction on the Owerri-Umuahia Road in Imo state, which used to be a source of nightmare, was different this time, with far lesser customer presence.
The same was the case at the United Bank for Africa (UBA) branches at Bende (Abia), Arondizuogu, Nwaorieubi (Imo) and Isi-Okpo (Rivers).
Access Bank branches at Umunze, Aguleri and Ihiala in Anambra witnessed no crowds, only those who needed to sort out ATM and BVN issues came to the banks.
Residents of Sabongida-Ora and Ekpoma in Edo confirmed that the First Bank branches in those areas were not the beehive of activities that they used to record in the past. The FCMB branch at Oko Erin in Kwara State was not besieged by customers — unlike the past.
Digital boom
For the first time in many years, the rural areas witnessed idle bank ATM terminals, yet business boom via digital payment transactions – such as transfers and POS services – never experienced in the past. Petrol filling stations, transporters like the bus, motor-cycle and tricycle operators, petty traders, market women who sell soup ingredients (pepper, crayfish, vegetables, spices, egusi, ogbono) embraced digital payments.
“Business has never been this good, despite the high cost of things,” a middle-aged woman who identified herself as Beathrice Akor, told THEWILL at the Nkwo-Ogwu market in the Aboh-Mbaise LGA of Imo state where she runs a bar and restaurant. She was excited about the boom in digital payment transactions that guarantee security and safety of her wares.
Roadside mechanics, vulcanizers and car wash operators accepted e-payment through transfer or POS, so did the worship centres. The annual harvest of the St. Andrew’s Anglican Church, Obizi, Ezinihitte-Mbaise LGA in Imo state, recorded huge donations and bazaar proceeds from the worshippers and visitors, mainly through digital platforms.
In a message on its platform, the church commended the members for embracing digital payment platforms in settling their commitments “which has helped in making our church debt-free this year”, the authorities said in a letter seen by THEWILL.
The experience is so fluid that residents would reject ‘no cash’ as an excuse for not honouring a request for financial assistance or donation towards community projects; a Moniepoint account user was always available to assist.
THEWILL observed that the e-payments were dominated by the Opay and Moniepoint digital platforms mostly used by businesses and the people during community fund-raising events.
“They (Opay and Moniepoint) are efficient, and would not ‘eat’ your money. You get your money back if it did not go through. They are our mobile bank. Everybody is doing business and getting paid notwithstanding the hard times. Nobody owes anybody,” Brendan Ikeh, a tricycle operator, told THEWILL at the Etche-Ngor Okpala junction in Imo state.
Drinking joints operated late into the night with customers making instant payments through their digital accounts.
At Ore town on the Benin-Sagamu expressway in Ondo state, fruits, water and palm wine hawkers operated the alternative payment transactions, especially Moniepoint. Wheel-barrow pushers would accept transfers for payment.
Hidden hands of NIBBS
This success story resulted from the digital infrastructure transformation provided by NIBBS to advance the country’s payment system.
The company is established to create and champion transformative financial technologies designed to improve accessibility, security, and convenience for Nigerians; the effect of this commitment is playing out in the countryside.
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 last year that, with over 65 million Bank Verification Numbers (BVN) holders 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.
This is in line with part of its mandate: ‘To provide infrastructure for the automated processing and settlement of transactions between banks acting on their own account as regards deposit placements, Treasury Bills Transaction, Naira settlement on inter-bank foreign exchange transactions.’
Oiwoh had said, “We are working to make Nigeria work; hence NIBSS must guarantee Nigeria’s efficient payment system. We will continually remain in our creative thinking because technology is about creating value, and collaboration is the key.”
THEWILL reports that in a significant move aimed at enhancing financial inclusion and the digital payment landscape in Nigeria, UBA on behalf of Nigeria Inter-Bank Settlement System (NIBSS), other Banks and financial institutions, last December, successfully hosted the inaugural Annual General Meeting (AGM) of Nigeria’s Quick Response (NQR) Industry Committee, reinforcing the importance of cutting-edge Quick Response (QR) payment solutions.
The AGM featured thought-provoking panel discussions on critical areas of the NQR payment platform, including: Expanding Financial Inclusion; Developing strategies to make QR payments accessible to underserved communities; Improving User Experience; Creating frictionless payment journeys for both consumers and merchants; Driving Bespoke Solutions, leveraging NQR APIs to develop tailored solutions for specific market needs as well as encouraging collaboration among stakeholders to accelerate adoption and scalability.
The NIBSS Quick Response (NQR) payment platform is a revolutionary solution designed to transform how Nigerians pay for goods and services. NQR enables consumers to scan QR codes directly from their bank mobile applications for end-to-end transactions.
The platform caters to a broad range of use cases, including: Making payments fast and convenient for shoppers and merchants; Enabling digital payments for taxis, buses, and other transport services; Allowing users to pay utility bills, subscriptions, and more with a simple scan; Providing cost-effective payment options for SMEs to scale their operations.
Industry experts emphasise on the need to extend the digital payment transformation to the countryside in an efficient and affordable manner that enhances financial inclusion penetration.
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.
