If you deal with money digitally in Nigeria, there’s a high chance you’ve probably heard about NIBSS before. In most cases, you’ve seen or heard people talk about money transfers being unavailable because of a downtime with NIBSS.
So, what is this “NIBSS,” and why does a downtime with it affect your money?
An Overview Of NIBSS
NIBSS is an acronym for the “Nigeria Inter-Bank Settling System.” It is a company that maintains the digital system that makes it possible for people to send money between banks in Nigeria.
Founded in April 1933, NIBSS is owned in equal parts by every licensed bank and discount house in Nigeria – as well as the Central Bank of Nigeria (CBN).
What NIBSS Does
To really understand the role of NIBSS, imagine this scenario:
- Mike, in Lagos, wants to send money to his friend, Ahmed, in Kano
- Mike has an account with Access Bank, while Ahmed operates a First Bank account
- Today, Mike can easily take his mobile phone and send money to Ahmed, while Ahmed gets it almost instantly
- NIBSS operates the infrastructure that makes this inter-bank transfer possible.
With its impressive technology, NIBSS ensures that inter-bank transfers in Nigeria are fast and secure. In fact, if not for the service, these transfers would take hours or even days to be processed. So, you can see just how important NIBSS is.
Besides this, NIBSS also has several uses – including:
- Payment collections
- Data and identity services like your Bank Verification Number (BVN), etc.
- Regulating inter-bank payments in Nigeria
- Ensuring that we can properly monitor payment flows across the country
The Implications Of NIBSS Downtime
Today, every financial institution in Nigeria is connected to NIBBS – from banks to fintechs. With this massive workload, it’s not uncommon for NIBSS’ infrastructure to suffer downtimes every now and then.
When NIBSS’ infrastructure is down, inter-bank transfers would most likely be impossible. And those that work usually get delayed. Transfers within the same bank will usually work, so a person using, say, a First Bank account will still be able to send money to someone who also uses First Bank. But, there are times when even transfers within the same bank might be delayed when NIBBS’ service is down.
So, this means that you might also notice some delays with withdrawals into your bank account from Exchanger101. Nevertheless, we’re always on the lookout for these issues and will let you know when NIBSS is having a downtime. If you’d like any additional help, please feel free to reach out to our Support Team at support@exchanger101.com