The Nigeria Inter-Bank Settlement System has issued mandatory technical security compliance protocols. The directive applies to commercial banks and fintech operators. The goal is to mitigate fraudulent transaction risks. The protocols cover digital payment corridors.
Nigeria’s digital payment system has grown rapidly. Mobile transfers, POS transactions and USSD banking are mainstream. That growth has attracted fraudsters. In 2024, NIBSS reported a surge in phishing and SIM-swap fraud. In 2025, several banks reported breaches. The Central Bank of Nigeria has issued guidelines. Enforcement has been uneven. NIBSS is now acting directly. The directive follows a rise in fraud attempts.
NIBSS said institutions must strengthen authentication. They must monitor transactions in real time. They must train staff. They must report incidents within 24 hours. The directive applies to banks, mobile money operators and payment service providers. NIBSS said compliance will be monitored. Non-compliant institutions face sanctions. The timing matters. The festive season approaches. Transaction volumes will rise. Fraudsters exploit the surge. NIBSS wants to prevent breaches before they happen.
The directive is sound. Implementation is the test. Many fintechs lack resources. Smaller operators may struggle. NIBSS must support them. It must also enforce consistently. One weak link compromises the system.
Winners: Consumers, who gain protection. Banks, which gain trust. Fintechs, which gain credibility. NIBSS, which shows leadership. Losers: Fraudsters, who face tougher defences. Small fintechs, which face compliance costs. Institutions that fail to comply, which face sanctions.
Bottom Line: NIBSS ordered stronger security. Digital payments are growing. Fraud is rising. The directive is necessary. Enforcement will determine its impact. Consumers must trust the system.