from OKORO CHINEDU in Lagos, Nigeria
Nigeria Bureau
LAGOS, (CAJ News) – THE Nigeria Inter-Bank Settlement System’s (NIBSS’) decision to join Africa’s first regulated blockchain network for payments has been hailed as a move signaling a significant shift in the global financial landscape.
NIBBS, a payments clearing house primarily owned by the Central Bank of Nigeria (CBN), has joined the platform built by the local decentralised payment infrastructure company, Zone.
Zone officials said this partnership marked one of the world’s first instances of regulatory participation in a private blockchain consortium, potentially redefining how financial regulations and decentralisation intersect on a global scale.
It involves NIBSS utilising Zone’s blockchain network to enhance its Payment Terminal Service Aggregation (PTSA) operations.
PTSA is a regulatory oversight function in Nigeria assigned to NIBSS and requires all payments made at Point-of-Sale terminals to pass through an aggregator before reaching the cardholder’s bank for authorization.
The arrangement is anticipated to ensure enhanced oversight and compliance with CBN’s payment standards.
Obi Emetarom, Chief Executive Officer and co-founder of Zone, said the partnership was testament to the transformative power of blockchain technology in payments, and more generally, in the financial sector.
“It demonstrates how blockchain technology can enhance regulatory oversight functions while simultaneously streamlining operations for service providers and delivering delightful experiences to end-users,” Emetarom said.
Zone reports its blockchain network has some of Africa’s biggest banks as members, and offers several key advantages such as decentralized routing, which enables direct exchange of financial messages between participating banks without an intermediary.
The network facilitates real-time settlement, ensuring instant transaction finality and immediate value for each successful transaction.
Premier Oiwoh, Managing Director/Chief Executive Officer of NIBSS, said such partnerships and collaborations with key industry players represented a milestone in its mission to drive innovation and enhance the efficiency of the payment system.
“The strategic alliances will revolutionize the ecosystem, offering improved operational efficiency, cost savings and enhanced financial inclusion, ultimately positioning Nigeria at the forefront of the global payment space,” Oiwoh said.
– CAJ News