What is NIBSS
NIBSS is full named Nigeria Inter-Bank Settlement System. It is the platform that coordinates the connectivity of the Central Bank of Nigeria (CBN) with licensed Nigerian banks, and inter relationship between nigerian banks. A quick example of its role is when you transfer money from zenith bank account to an access bank account via electronic transfer, and its reflects within some minutes. They have many role, as this example above is just one of the role. NIBSS is like a middle-man for intercommunication between nigerian banks and also the CBN.
Nigeria Inter-Bank Settlement System (NIBSS) Plc was incorporated in 1993 and is owned by all licensed banks including the Central Bank of Nigeria (CBN). It commenced operations in June 1994. NIBSS has put in place modern world-class infrastructures for handling inter-bank payments in order to remove potential bottlenecks associated with inter-bank funds transfer and settlement. The company also operates the Nigeria Automated Clearing System (NACS) which facilitates the electronic clearing of cheques and other paper based instruments, electronic funds transfer, Automated Direct Credits and Automated Direct Debits. NIBSS at the instance of the Bankers’ committee has acquired cutting edge technologies for the operation of the Nigeria Central Switch (NCS).
- To carry on business as a service-oriented institution that provides a mechanism for same day clearing and settlement of inter-bank transfers and payments
- To provide the infrastructure for the automated processing and settlement of transactions between banks
- To provide the framework for elevating the level of efficiency in funds transfer generally whilst at the same time reducing the risks associated with uncertainties in receiving value for payment and difficulties in maintaining efficient treasury operations and effecting timely reconciliation thereof
- To initiate and develop an integrated nationwide network for the electronic or paperless funds transfer and settlement of transactions, among others.
The Board of NIBSS is composed of the Deputy Governor(Operations) of the Central Bank of Nigeria as the Chairman, representatives of Banks as Directors, Executive Directors and the Managing Director/CEO, who heads Executive Management group of the organisation.
NIBSS MODE OF OPERATION
NIBSS operation is supported with the best Information, Communication and Technology infrastructure for Automated On-line operations as well as effective information and data transmission security practices to deliver world-class payment/settlement services. Operational and Credit Risks in funds transfer across financial institutions are adequately mitigated by NIBSS operations.