A new rule from the Nigeria Inter-Bank Settlement System (NIBSS) says banks in Nigeria must stop using certain money apps like Opay, Kuda, and Palmpay for transfers. The NIBSS sent a message to the banks on December 5, 2023, saying they can’t have these apps on their transfer lists.
NIBSS explained that having these apps on the list goes against the Central Bank of Nigeria’s (CBN) rules about electronic payments.
This decision might affect lots of people who use these apps for sending and receiving money.
The circular reads: “This is to bring to your attention that listing non-deposit-taking financial institutions such as Switching Companies, Payment Solution Service Providers, and Super Agents 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.”
It added, “Another regulatory advice in this regard is the 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 on the above, kindly delist all Switches, PSSPs, and SAs from your NIP Outward Transfer channels only (not inwards).”
