Their specialty is in Automated Processing, fund transfer instructions, and settlement of payments. The NIBSS is also responsible for the infrastructure that enhances funds transfer. NIBSS also operates an automated clearing technology that facilitates the clearing of cheques, General Interbank Recurring Order (GIRO), Automated Direct Credits and Automated Direct Debits. The establishment of NIBSS heralded the setting up of modern infrastructure for handling inter-bank payments to remove the bottlenecks and settlement delays associated with high value and retail transactions in the money market, as well as inter-bank foreign exchange deals. NIBSS was incorporated in 1993 as a Public Limited Liability Company (PLC) and is owned by all licensed banks and discount houses in Nigeria including the Central Bank of Nigeria (CBN). This structure is the Nigeria Inter-Bank Settlement System (NIBSS) which exists with a vision of becoming the leading provider of innovative financial services in Nigeria. B, a customer of XYZ Bank, there is a structure that exists in the middle to enable money to be removed from the sender’s Bank to the receiver’s account. A, a customer of ABC Bank transfers money to Mr.
However, there is a structure behind the scenes that enables seamless money transfer between different banks. Banking transactions, like mobile transfers, appear simple, flexible, and straightforward on the surface.