In what could become one of the most transformative financial reforms in recent years, Nigerians may soon say goodbye to the era of paying fees for instant bank transfers.

The federal government, through the Nigeria Interbank Settlement System (NIBSS), has announced plans to scrap transfer charges and replace them with a more inclusive, innovation-driven model.

'Our real competition is cash on the streets'

The revelation came during the Globus Bank Fintech Summit 2025 in Lagos, where NIBSS Managing Director and CEO, Premier Oiwoh, unveiled a bold plan to eliminate fees on the NIBSS Instant Payment (NIP) platform.

Delivering his keynote speech themed “From Cashless to Smart Economies: Shaping the Next Frontier of Financial Innovation,” Oiwoh announced that by next year, Nigerians would begin to enjoy zero-cost transfers, as the country transitions to a subscription-based payment model.

“Our biggest competition is not banks or fintechs — it’s cash on the streets,” Oiwoh declared.

“When you remove transaction fees, digital payments instantly become more attractive to millions of everyday Nigerians.”

The plan, he said, will not only boost digital adoption but also break the psychological dependence on physical cash that still dominates Nigeria’s informal economy.

Beyond cashless: Building a smart, secure economy

While the announcement sparked excitement across the fintech and banking space, Oiwoh stressed that infrastructure, security, and trust remain critical.

Nigeria, he warned, must strengthen its national payment architecture and invest in systems resilient enough to withstand fraud and cyberattacks.

According to a BusinessDay report, Oiwoh cited the NIBSS Hawk platform, which has already foiled numerous fraud attempts, as a key tool in safeguarding public trust.

“We must never put profitability above compliance,” he cautioned. “One regulatory sanction or fraud incident can wipe out years of progress.”

Oiwoh also urged fintechs and banks to collaborate more closely, noting that Nigeria’s true challenge isn’t competition between financial players, but the dominance of cash itself.

The next phase of financial inclusion Highlighting Nigeria’s growing fintech resilience, Oiwoh praised the success of AFRIGO, the nation’s homegrown card scheme, which processed over ₦70 billion in transactions in 2025 alone.

More than one million AFRIGO cards are already in circulation, enabling instant POS credits, a first globally.

In a move set to deepen financial inclusion, he disclosed that the upcoming National Identity Management Commission (NIMC) multipurpose ID card will carry the AFRIGO payment rail, allowing millions of citizens to access banking services through their national ID.

A future fueled by innovation and trust

Looking ahead, Oiwoh painted a vision of Nigeria as a smart economy powered by innovation, with payment methods ranging from QR codes and NFC to biometric solutions.

He urged the government and private sector to align efforts, just as India and China did in their financial revolutions.

“Payments are not the destination,” he concluded, “but the foundation of a digital economy where innovation, inclusion, and trust drive prosperity.”

NIBSS plans come as Sterling Bank, one of Nigeria’s innovative banks, announced that it has scrapped account maintenance charges, stating that the move aims to give its customers less hassle.

Experts say Sterling Bank’s initiative has been a catalyst for NIBSS' latest move, stating that if implemented, the move will catapult Nigeria’s economy to greater heights.