The Nigeria Inter-Bank Settlement System (NIBSS), a key player in Nigeria’s financial infrastructure, has recently entered into a groundbreaking partnership with Zone, a blockchain startup. This collaboration aims to overhaul the way payment services are managed in Nigeria by integrating blockchain technology into NIBSS’s Payment Terminal Service Aggregation (PTSA) operations.
The essence of this partnership is to replace the traditional central points of failure in transaction routing with a decentralized solution provided by Zone. This move is expected to not only streamline operations but also enhance the regulatory oversight capabilities of the Central Bank of Nigeria (CBN). By utilizing Zone’s blockchain network, NIBSS will ensure compliance with Nigeria’s payment standards while improving the robustness of its payment system.
Premier Oiwoh, CEO of NIBSS, expressed his enthusiasm for this initiative, highlighting that such partnerships are pivotal in advancing innovation and operational efficiency. He emphasized that this collaboration would significantly improve financial inclusion and cost-effectiveness, positioning Nigeria as a leader in the global payment landscape.
On the other hand, Obi Emetarom, CEO and Co-founder of Zone, praised the transformative potential of blockchain technology, not only in revolutionizing payments but also in enhancing overall financial regulation. He believes that blockchain’s decentralized routing capabilities will eliminate intermediaries, making the financial transactions more direct and secure.
The integration of blockchain technology into NIBSS’s operations is seen as a major step forward in embracing new technologies to drive financial progress. This development promises to enhance the transparency, efficiency, and security of Nigeria’s payment systems, setting a precedent for other financial institutions globally.
