- NIBSS is about to introduce offline payments, enhancing financial inclusion for Nigerians lacking reliable internet access
- The executive director for Business and Products at NIBSS, Ngover Nwankwo, stresses that cash and digital payments must coexist to protect users relying on cash
- She then urged collaboration among stakeholders to combat rising digital fraud and build a secure payment ecosystem
The Nigeria Inter-Bank Settlement System is set to introduce offline payment solutions aimed at reaching millions of Nigerians who lack reliable internet access, a move expected to deepen financial inclusion and reduce exclusion from the digital payments ecosystem.
Speaking at the 2026 Chief Human Resources Officers Conference in Lagos on Friday, January 23, Ngover Nwankwo, Executive Director for Business and Products at NIBSS, said the next phase of payment innovation in Nigeria must be inclusive by design.
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“Our focus is balancing innovation with inclusion, ensuring no Nigerian is left behind as digital payment adoption grows,” Nwankwo said.
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She explained that while digital payments are expanding rapidly, a significant segment of the population still struggles with poor connectivity, limited data access, and low digital literacy. Offline payments, she said, would help bridge that gap.
Cash still matters in Nigeria
Nwankwo stressed that despite the growth of electronic transactions, cash remains central to Nigeria’s economy and daily life.
She dismissed the idea that cash could be eliminated in the near future, insisting that both cash and digital channels must coexist.
“Cash and digital platforms must work together, protecting those who rely on cash while offering secure and efficient services to digital users,” she said.
She praised Nigerian banks for recent operational improvements, noting that cash availability during the busy December 2025 period was largely smooth, with minimal public complaints.
According to her, this reflected better planning and coordination across the banking system.
Biometrics and simpler access
Beyond offline payments, NIBSS is also advancing biometric solutions to simplify access to financial services.
Nwankwo highlighted biometric authentication that allows customers to request and verify payment cards using fingerprints, reducing paperwork and documentation barriers.
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She said such innovations are especially important for underserved and rural communities where formal identification remains a challenge.
Cash growth and policy concerns
Presenting a paper at the conference, Lloyd Onaghinon, managing director of Bankers Warehouse Plc, said cash continues to play a critical role globally, even as electronic payments expand.
“Globally, cash usage continues to grow, driven by culture, demographics, trust, and financial inclusion,” Onaghinon said.
However, he warned that excessive cash held outside the banking system weakens financial intermediation and limits the effectiveness of monetary policy.
He called for closer collaboration among regulators, banks, and other stakeholders to strike a sustainable balance between cash, electronic payments, and emerging digital currencies.
CBN pushes to formalise idle cash
In a goodwill message, the Central Bank of Nigeria urged financial institutions to partner more closely with fintech companies and microfinance institutions to bring idle cash into the formal system.
CBN Director for Other Financial Institutions Supervision, Solaja Olayemi, said about 90 per cent of Nigeria’s cash remains outside the banking system.
He noted that fintechs and technology-driven microfinance institutions have wider agent networks, particularly in underserved areas.
Olayemi added that Moniepoint, OPay, and Kuda now hold national licences, while several other fintechs are in the process of being licensed.
Tackling fraud through collaboration
Other speakers at the conference called for stronger collaboration to combat rising digital fraud across banks, fintechs, telecom operators, and regulators.
They emphasised stricter KYC enforcement, shared threat intelligence, improved vendor risk management, and sustained customer education.
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According to participants, layered security and collective action are essential to building a safe, inclusive, and resilient payments ecosystem as Nigeria moves toward offline and next-generation payment solutions.
NIBSS reveals biggest fraud technique in Nigerian banks
Legit.ng earlier reported that the Nigeria Inter-Bank Settlement Systems identified social engineering as the most prominent fraud technique in Nigeria’s banking and digital payments ecosystem, despite a sharp drop in overall fraud losses in 2025.
The managing director of NIBSS, Premier Oiwoh, disclosed this on Wednesday at an industry event in Lagos, where he presented updated data on fraud trends across banks and fintech platforms.
According to him, fraud losses declined by 51 percent to N25.85 billion in 2025, compared with N52.26 billion recorded in 2024.