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Switches, super agents, others to be disconnected from instant payment system - THE GUARDIAN

DECEMBER 07, 2023

By Adeyemi Adepetun

The Nigeria Interbank Settlement System (NIBSS) has called for the disconnection of switching companies, payment solution service providers (PSSPs) and super agents (SAs) from the instant payment outwards system.

In a letter, dated December 5, 2023, and addressed to all deposit switches, merchant banks, switches, mobile money operators, payment service banks among others, NIBSS said: “This is to bring to your attention that listing non-deposit taking financial institutions such as switching companies (Switches), Payment Solution Service Providers (PSSPs) and Super Agents (SA) as 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 licences do not permit them to hold customers’ funds.”

NIBSS is an industry-owned firm that develops and handles the infrastructure for payments between different banks in Nigeria.

Corroborating the development, NIBSS, in the document, signed by its Executive Director, Business Development, Ngover Inyembe-Nwankwo, further drew the attention of the concern platforms to another CBN circular, with the caption: “Permissible Services and Products of PSSP Operation in Nigeria,” Ref: BPD/DIR/GEN/CIR/05/004 dated May 11, 2018.

Consequent upon this, NIBSS, said: “Kindly delist all Switches, PSSPs and SAs from your NIP Outward Transfer channels only (not inwards).


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