NIBSS Commences T+1 Settlement of POS Card Transactions

December 26th, 2011

NIBSS Commences T+1 Settlement of POS Card Transactions
Lagos Nigeria; November 28 2011: As part of its preparation for the Cashless Lagos project, Nigeria Inter-Bank Settlement System Plc (NIBSS) has commenced T+1 Settlement of POS transactions, processed through Valucard Nigeria Plc, into Merchants Bank accounts. The T+1 settlement rule is designed to ensure that business concerns that accept payments through Point of Sale (POS) devices are settled, that is, have the entire value of their previous day’s sales in their bank accounts in any Nigerian Bank on a next day basis.

The CBN mandated T+1 Settlement in the Guidelines on Point of Sale(POS) Card Acceptance Services released in August this year. T+1 Settlement concept was introduced by the Central Bank of Nigeria (CBN) to encourage merchants to accept card payments in place of cash, as part of the Cashless Lagos drive.

NIBSS Plc, through its Automated Bulk Clearing bureau, will carry out the T+1 Settlement into bank accounts of POS terminal users using its NIBSS Electronic Funds Transfer (NEFT) service. NEFT as it operates today, enables same day (Direct Credit and Direct Debit) electronic fund transfers based on bank account numbers, through Bank Teller Points, Internet Banking, Mobile Phone, e-Commerce and other modern Payments Service delivery channels. It provides security, ease of use, accessibility, convenience and efficient settlement and reconciliation functionalities, and is available in all banks in Nigeria.
The General Manager, Nigeria Inter-Bank Settlement System Plc (NIBSS), Mr. Niyi Ajao, who is so excited about the commencement of the T+1 Settlement scheme, stated that “with the commencement of the T+1 Settlement for POS transactions by NIBSS, the Banking industry has again shown that it is fully ready for the Cashless Lagos project. The T+1 settlement scheme is intended to make card payments more attractive to business owners, whether big or small, and to further encourage the use of POS channels for business transactions. This is a step in the right direction, and it is my firm belief that this new service will delight merchants who now have quicker access to the proceeds of their daily sales; it will accelerate the growth of the Nigerian financial system and the Nations economy.”

The Deputy General Manager Operations of Nigeria Inter-Bank Settlement System (NIBSS), Mr. John Obiekwe, in his own remark affirmed that the commencement of T+1 Settlement will create better value for business organizations and financial institutions who will have to worry less about the issue of cash handling. He stressed that “a major concern in the Cashless Lagos project was about how quickly merchants can get value from their transactions done through POS channels, and that is why the CBN has directed the T+1 settlement scheme”.
About NIBSS:
Nigeria Inter-Bank Settlement System (NIBSS) Plc was incorporated in 1993 and is owned by all licensed banks and discount houses in Nigeria including the Central Bank of Nigeria (CBN).

NIBSS has put in place world-class infrastructures for handling inter-bank payments and settlements in order to remove the bottlenecks and settlement delays associated with retail transactions in the money market. NIBSS also operates an automated clearing technology that facilitates the clearing of cheques, electronic funds transfer, Automated Direct Credits and Automated Direct Debits, among other electronic payment products put in place for the Nigeria financial system.

Headquartered in Lagos, NIBSS also has operations offices in seven (7) other commercial cities in Nigeria namely, Abuja, Port Harcourt, Kano, Ibadan, Benin, Ilorin, and Enugu.

NIBSS was recently appointed by the Central Bank of Nigeria, as the Payment Terminal Service Aggregator (PTSA) for POS transactions in the country. In its role as the PTSA, NIBSS has successfully carried out test transactions with several banks, and has commenced pilot operations.

November 28, 2011.
NIBSS Plc