Between outrageous transfer fees, failed transactions, and endless intermediary delays, the financial sector sometimes feels like a slow-moving train bound to get users upset.

Interestingly, the Nigeria Inter-Bank Settlement System (NIBSS) revealed that electronic payment transactions in Nigeria reached ₦600 trillion in 2023, however, cash says it’s going nowhere, and inefficiencies are unending.

OnePipe is stepping in to change this with its latest innovation, PaywithAccount, a seamless, secure, and automated bank-to-bank payment solution designed to wipe out intermediaries and enhance financial efficiency. 

The solution is particularly beneficial for small businesses struggling with cash flow constraints, delayed payments, and high transaction fees. 

A study by PwC revealed that 48% of Nigerian Micro, Small, and Medium Enterprises (MSMEs) have experienced delayed payments due to various reasons, with 33% reporting severe consequences. 

Traditional systems usually involve manual invoicing, repeated follow-ups, and high transaction fees, leaving business owners with less time to focus on growth.

OnePipe is simplifying financial transactions through API-driven solutions. Ope Adeoye, founder and chief plumber at OnePipe, said:

“Small businesses are the backbone of our economy, but too many struggle simply because getting paid is a challenge. We believe financial technology should remove obstacles, not create them. PaywithAccount helps businesses worry less about collections so they can focus on what truly matters—growth, innovation, and serving their customers.”

OnePipe was built on a vision to pull the services of financial institutions together into a set of APIs that are uniform in nature, making use cases born out of this to create the unimaginable.

Since that moment of inspiration, OnePipe has grown exponentially, now servicing 22,000 businesses monthly and processing transactions worth over half a billion dollars. 

Nonetheless, a fundamental challenge remained—direct bank-to-bank payments without third-party friction. With PaywithAccount, that missing piece is finally in place, enabling direct payments from accounts across 19 major banks, with more institutions expected to join.

PaywithAccount is Supporting SMEs and Enhancing Financial Inclusion

PaywithAccount is not limited to being a convenient tool; it brings a solution that addresses the tiresome challenges faced by businesses, especially SMEs. The removal of intermediaries ensures faster settlements, improved cash flow, and reduced operational costs.

Ngover Ihyembe-Nwankwo, executive director at Nigeria Inter-Bank Settlement Systems PLC (NIBSS), spoke on its significance: “Account payments can really empower small businesses, drive growth, and ensure financial inclusion. Many businesses struggle with cash flow limitations, inefficient payment processes, and high transaction costs. They need solutions that provide speed, security, and simplicity without the friction that often comes with traditional payment methods.

“At NIBSS, our core vision is to empower the financial ecosystem to innovate within the framework of interoperability, ease of connectivity, collaboration, and cost-optimisation,” she said.

“PaywithAccount is another heartening example of what happens when industry players leverage these guardrails to enhance the overall quality of our nation’s digital payment system.”

For entrepreneurs across Nigeria, the ability to receive payments on time means the difference between survival and growth. Mrs Olumide Ashade, founder of King’s Court School in Lagos, shared her perspective:

“As a school owner, I want to focus on my students, not spend hours tracking unpaid fees. Many of our parents pay in instalments, but managing these payments manually has been stressful. A solution like PaywithAccount means we can offer flexibility to parents while keeping our finances in order.”

One of PaywithAccount’s greatest strengths is the collaboration behind its success. Ihyembe-Nwankwo asserted the importance of ecosystem-wide cooperation: “Innovation does not happen in silos… It requires a full ecosystem. You need regulators, financial institutions, fintech innovators, and businesses all working together to solve problems and drive progress.”

Again, compliance and security are top priorities. “The financial ecosystem thrives on trust, and that trust is built on a strong foundation of compliance, risk management, and consumer protection,” she added.

The automation PaywithAccount brings makes transactions more predictable and reliable. Adedeji Olowe, founder of Lendsqr, explained:

“Reliable repayment is the backbone of growth for lenders. At Lendsqr, we understand that payment delays are a significant problem for lenders. We have helped many of our lenders transition from debit cards to PaywithAccount, which reliably ensures loan repayments are on schedule.”

The telecom industry, for example, stands to benefit greatly. PaywithAccount can bridge the gap between prepaid and postpaid services, providing telcos with a more flexible and reliable payment structure. 

PaywithAccount also provides a seamless alternative, ensuring that even market traders can receive digital payments without issues, as many small market sellers have started realising the importance of digital payments, after losing customers due to cash scarcity.

Beyond business benefits, PaywithAccount is expected to enhance financial inclusion by providing unbanked and underbanked individuals with easier access to digital transactions, further integrating them into the formal economy.

This growth results from the increasing reliance on PoS for both payments and cash withdrawals, driven by persistent cash shortages and the rapid expansion of fintech-powered PoS networks.

In terms of transaction volume, there was an 8% year-on-year increase, with 1.5 billion PoS transactions recorded in 2024 compared to 1.4 billion the previous year. The expansion of PoS terminals also surged, as deployments more than doubled to 5.5 million from 2.4 million in 2023—a 129% jump. 

Meanwhile, the number of registered PoS terminals rose from 3.5 million in December 2023 to 7.8 million by the end of 2024. However, over 2 million registered devices are yet to be deployed, revealing untapped prospects for further expansion.

The Rise of PoS: Fintechs Driving Financial Inclusion

Historically, commercial banks outshined PoS terminal deployment, but fintech companies have taken the lead in recent years. The demand for alternative payment solutions skyrocketed due to cash shortages at ATMs and long bank queues, making PoS transactions a convenient choice for millions of Nigerians.

Financial analyst Adewale Adeoye explained the shift, stating, “The rapid growth of PoS is not just an avenue for payment but also withdrawals have filled a gap for many Nigerians who struggle to access cash through banking channels such as ATM or teller withdrawals. It has also helped in bringing banking services closer to the rural areas, which do not have as many banks accessible to them.”

Fintech Firms Expanding PoS Networks

Leading fintech companies continue to push PoS adoption across the country. PalmPay, for example, has onboarded over 700,000 agents and is expanding its reach to all 774 local government areas in Nigeria. “This mission has fueled our efforts in deploying more PoS terminals across the country,” said Femi Hanson, head of Marketing and Communications at PalmPay.

Similarly, Moniepoint disclosed that it has deployed over 800,000 PoS terminals nationwide and is working on introducing an advanced PoS machine that integrates payment processing, inventory management, and transaction reconciliation. OPay, another major player in the sector, reported having over 500,000 PoS agents across the country.

Beyond convenience, the growth of PoS transactions has economic implications. Increased transactions contribute to government revenue through the Electronic Money Transfer Levy (EMTL), which applies to transactions of N10,000 and above. PoS businesses have also become a source of income for many Nigerians, particularly in rural areas where banking services remain limited.

However, there are still issues about rising PoS charges. With limited cash availability at bank ATMs, many Nigerians have no choice but to rely on PoS agents, who have increased transaction fees. In some parts of Lagos, withdrawing N5,000 now attracts a fee of N500—far higher than the N100 or N200 charged a few months ago.

PoS operators justify the higher charges, pointing to the increasing difficulty in sourcing cash, often purchasing it from alternative sources like petrol stations due to bank limitations.

Electronic Payments Reach Historic High

In a related development, electronic transactions in Nigeria surged to N1.07 quadrillion in 2024, surpassing the quadrillion mark for the first time. This represents a 79.6% increase from the N600 trillion recorded in 2023, according to NIBSS data. 

The NIBSS Instant Payment (NIP) system, which facilitates real-time interbank transfers, remains the dominant electronic payment method, processing transactions across mobile apps, USSD, internet banking, PoS terminals, and ATMs.

The soon-to-be-launched card aims to bring better access to essential services, such as financial inclusion, government interventions, and job applications, providing Nigerians with a simplified, reliable identification system.

One advantage of the new ID card is its potential to drive financial inclusion. With over 100 million Nigerians currently excluded from the formal banking system, the new card will bring a good portion of the population into the fold. 

It will serve as a gateway for Nigerians to open bank accounts, access credit facilities, and request either debit or credit cards, with the added benefit of building a verifiable credit score. This development will make it easier for citizens to secure loans from both government and private financial institutions.

This innovation is backed by a partnership between NIMC and the Nigerian Consumer Credit Corporation (CREDICORP), which will work together to establish reliable credit scores for all Nigerians who have registered their National Identification Number (NIN). 

The integration of credit scores with the NIN will simplify access to loans and other financial services, greatly easing financial transactions for many Nigerians.

Again, the new National ID card will be a mandatory requirement for applying for jobs in both government and private sectors. This step aims to ensure that employers can confidently verify the identity of job applicants, giving them a clear and accurate view of an individual’s background. 

With the NIN card serving as an official identification, this process will help eliminate fraud and ensure greater transparency in hiring practices.

The ID card will also simplify a range of administrative functions. It will be accepted as a valid form of identification for essential services, such as voter registration and passport applications.

The simplicity of presenting a single card for these services will save time and reduce bureaucracy, ensuring that Nigerians can access services without unnecessary delays.

Added to these, the NIN card will help in the distribution of government interventions, helping to ensure that only eligible citizens receive social benefits. 

As part of the government’s vision to reduce corruption and improve transparency, the card will provide a secure means for accessing various government services across multiple Ministries, Departments, and Agencies (MDAs).

Developed in collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-Bank Settlement System (NIBSS), the National ID card will also be compatible with Nigeria’s digital currency, the eNaira. 

This will allow cardholders to make digital transactions securely, further integrating the ID card into the nation’s growing financial ecosystem.

Dr. Peter Iwegbu, head of Card Management Services at NIMC, confirmed that the distribution of the new cards will begin shortly, with plans in place for decentralised access through banks nationwide. 

Nigerians will be able to request and collect their cards at local bank branches, and the NIMC will ensure that the pricing remains consistent across institutions.

This initiative is expected to increase transparency, reduce fraud, and promote financial inclusion.

This indicates that a total of 750,048 account owners have registered for the BVN in the last two months.

As of December 2023, the total registered BVN stood at 60 million, according to NIBSS data. This suggests that the database has grown by 3.4 million so far this year.

The significant increase in registration for the BVN this year could be attributed to the December 2023 directive of the Central Bank of Nigeria (CBN), which ordered all banks to freeze any account not linked with BVN by April 2024.

Part of the directive also required all commercial, merchant, non-interest, payment service banks, other financial institutions, and mobile money operators, to mandate the BVN or National Identification Number (NIN) for all accounts and wallets.

Meanwhile, the number of active bank accounts in the country shows that there is still a very wide gap between the number of accounts and the number of BVN, which is now a compulsory requirement for opening an account.

According to the recent banking data released by NIBSS, the number of active bank accounts in Nigeria stood at 231.1 million in July 2024.

Going by the current number of BVNs, there is still a wide gap between the number of accounts and the registered BVNs. However, industry analysts believe that the difference may not be much given that multiple accounts can be linked to a single BVN.

According to Enhancing Financial Innovation and Access (EFInA) Access to Financial Services in Nigeria 2023 Survey report, 5% (3 million) of banked adults do not have a BVN or NIN. A BVN is a unique number that allows individual accounts to be verified across the Nigerian banking industry.

The unique ID number is issued to every bank customer at enrolment and linked to every account that the customer has at all Nigerian banks. According to NIBSS, the BVN gives bank account owners a unique identity that can be verified across the Nigerian banking industry, while it ensures that customers’ bank accounts are protected from unauthorized access.

According to the recent directives from the CBN, every financial account, including that of fintechs, must now be linked with BVN before it can be operational.

Ebehijie Juliet Momoh, a former Senior Vice President at Mastercard, brings over 30 years of experience in the financial services industry to her role. 

She began her career at Guaranty Trust Bank (GTB) and has held strategic leadership positions at Diamond Bank Plc (now Access Bank Plc), First City Monument Bank, Standard Chartered Bank, and most recently, as Senior Vice President and Country Head, West Africa at Mastercard. 

Momoh holds a Master of Business Administration (MBA) from Bangor University and a Bachelor of Science (BSc) in Chemistry from the University of Lagos. Her broad experience and educational background make her well-suited to lead AfriGOPay Financial Services Limited’s mission to enhance Nigeria’s payment infrastructure and drive the country’s digital payment revolution.

In her new role, Ebehijie Juliet Momoh will lead the development, operations, and acceptance of the AfriGO Card Scheme, designed to deliver a seamless, secure, and efficient payment system that meets the diverse needs of the populace. The scheme aims to position Nigeria at the forefront of the digital payment revolution.

Additionally, Ugo Obasi has been appointed as the Chief Operating Officer (COO) of AfriGOPay Financial Services Limited. Obasi brings over 20 years of exceptional leadership experience in banking, information technology, and payments across West Africa. His career is distinguished by his work implementing commendable payment solutions throughout the region. 

As COO, Obasi will drive operational excellence and innovation, overseeing the development and implementation of strategic initiatives to enhance the efficiency, security, and user experience of the AfriGO Card. 

The AfriGO Card, launched by the Central Bank of Nigeria (CBN) and NIBSS, is Nigeria’s first national payment card, providing more options for Nigerians while coexisting with existing international cards.

Temidayo Adekanye, who served as a Chief Risk Officer at NIBSS, is suing the company for wrongful termination after he flagged alleged financial misconduct.

Adekanye’s lawsuit, filed with the National Industrial Court, seeks N1 billion ($2.4 million) in damages for what he claims was an unlawful dismissal. He further argues that his termination breached his employment contract.

The crux of the case hinges on Adekanye’s accusations of “serious financial misappropriation, corporate governance issues, and fraud” within NIBSS. The lawsuit details concerns raised by Adekanye regarding the Afrigo domestic card scheme launched in 2023, the NQR QR code payment platform, and a cloud migration project.

According to court documents, Adekanye sought clarification from NIBSS’s CFO, company secretary, and managing director but was allegedly denied access to relevant financial records and contracts. He subsequently escalated his concerns to the company’s board audit and risk committee in November 2023.

Adekanye alleges that NIBSS, instead of investigating his claims, pressured him to resign in January 2024. When he refused, he was terminated. The lawsuit also points out the elimination of the Chief Risk Officer position from NIBSS’s corporate structure, which Adekanye’s lawyers argue is a deliberate attempt to silence him.

NIBSS, while acknowledging the lawsuit, is yet to comment on the specifics of the case, citing respect for the judicial process. The organization maintains that Adekanye’s termination was based on a perceived unlawful termination, not any criminal activity.

The first hearing for this case is scheduled for May 20th at the National Industrial Court. The outcome could have some implications for NIBSS’s reputation and potentially raise concerns about the integrity of Nigeria’s financial system.

The national identity solution, Techeconomy gathered, is for all types of social and financial services to be powered by AfriGO, a national domestic card scheme.

Confirming the development in a statement on Friday, Mr. Kayode Adegoke, head of Corporate Communications at the National Identity Management Commission (NIMC) said that the new scheme is in collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-bank Settlement System (NIBSS).

The National ID card, he said, is layered with verifiable National Identity features and backed by the NIMC Act No. 23 of 2007, which mandates NIMC to enrol and issue a General Multipurpose card (GMPC) to Nigerians and legal residents.

“The new National ID Card will address the demand for physical identification enabling cardholders prove their identity, access government and private social services, facilitate financial inclusion for disenfranchised Nigerians, empower citizens, as well as encourage increased participation in nation-building.

“Only registered citizens and legal residents with the National Identification Number (NIN) will be eligible to request the card. The card, which will be produced according to ICAO standards, is positioned as the country’s default national identity card.

“In addition to this functionality, cardholders will also be able to use the cards as debit or prepaid cards by linking same to bank accounts of their choice. The card shall enable eligible persons especially those financially excluded from social and financial services have access to multiple government interventions programs.

“In line with data protection regulation and public interest, NIMC remains committed to protecting cardholders’ personal data and will ensure compliance with international standards on data security protocols as security features that protect the confidentiality and safety of users’ information”.

Key features of Nigeria’s new ID will include:

• Machine-readable Zone (MRZ) in conformation with ICAO for e-passport information
• Identity card Issue Date and document number in line with ICAO standard
• Additional features include travel, health insurance information, microloans, agriculture, food stamps, transport, and energy subsidies, etc.
• Nigeria’s quick response code (NQR) containing the national identification number
• Biometric authentication, such as fingerprint and pictures, as the primary medium for identity verification through the data on the card chip
• Offline capability that allows transactions in areas with limited network coverage or zero infrastructure connectivity
• Functionality as a debit and prepaid card catering to both banked and unbanked individuals

“Request for cards by registered citizens and legal residents will be made available online, at any commercial bank, various agencies or agents participating in multiple programs and/or any NIMC offices nationwide”, Adegoke said.