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Tag: Fintech

  • NIBSS Drags Banks To Court Over ₦13.6bn Transfer Glitch Affecting 176 Accounts

    Nigeria’s digital payment system has come under fresh scrutiny after the Nigeria Inter-Bank Settlement System (NIBSS) approached the Federal High Court in Lagos over a ₦13.66 billion transfer error linked to a technical glitch on its payment platform.

    The incident, which reportedly occurred on September 6, 2024, affected 176 customer accounts across 19 commercial banks and microfinance institutions.

    How The ₦13.6bn Glitch Happened

    According to court filings, the issue originated from a fault on the Nigeria Instant Payment (NIP) platform, which powers instant interbank transfers across the country.

    The glitch reportedly triggered what industry operators describe as “dry posting,” where accounts received credit alerts without the corresponding debit transactions being completed.

    NIBSS said the funds were mistakenly credited into customer accounts that were never meant to receive the money.

    The settlement company reportedly informed affected financial institutions immediately after detecting the problem and requested restrictions on the impacted accounts.

    However, the banks allegedly refused to freeze the accounts without a valid court order.

    NIBSS Seeks Recovery After Nearly Two Years

    Almost 20 months after the incident, NIBSS is now asking the court to approve account freezes, Post No Debit restrictions, BVN-linked liens and the reversal of traceable funds.

    The organisation is also seeking legal backing to recover whatever remains of the ₦13.66 billion mistakenly transferred.

    The development has raised concerns over how much of the money may still be recoverable after such a long delay.

    Fresh Questions Over Nigeria’s Banking Infrastructure

    The case has reignited conversations about the stability of Nigeria’s financial technology and banking infrastructure as digital transactions continue to rise rapidly.

    Electronic transactions in Nigeria reportedly surpassed ₦1.07 quadrillion in 2024, with the NIP platform processing trillions of naira monthly.

    As the central switch for most bank transfers, fintech payouts and PoS payments, NIBSS plays a major role in Nigeria’s digital economy.

    Industry observers say even minor technical failures within such a system can lead to billions of naira moving wrongly within seconds.

    Series Of Banking Glitches Raise Concerns

    The latest controversy adds to a growing list of major banking and fintech system failures recorded in recent years.

    In 2023, a NIBSS-related issue reportedly contributed to a ₦21 billion payment incident involving Flutterwave.

    Several banks, including Wema Bank, Keystone Bank, Union Bank of Nigeria and Guaranty Trust Bank, have also experienced unauthorised transfer glitches involving billions of naira.

    Analysts say many of the failures are linked to rushed upgrades, weak third-party integrations and infrastructure struggling to cope with Nigeria’s expanding digital payment ecosystem.

    The NIBSS lawsuit is expected to further test confidence in Nigeria’s banking technology systems as regulators and financial institutions face increasing pressure to strengthen payment security and system reliability.

  • Vitel Wireless Partners OPay, Moniepoint for Airtime and Data Purchases

    Vitel Wireless has announced a partnership with fintech companies OPay and Moniepoint to enable millions of Nigerians purchase airtime and data directly through their digital wallets and banking platforms.

    The collaboration gives users of both fintech platforms direct access to Vitel Wireless telecom services for easier airtime top-ups and data bundle purchases.

    Vitel Expands Telecom Access Through Fintech Platforms

    According to the company, the partnership is aimed at improving access to mobile connectivity across Nigeria, especially in rural and underserved communities where telecom distribution channels remain limited.

    The integration allows OPay and Moniepoint users to buy airtime and subscribe to data plans directly from their existing wallets without needing extra platforms or agents.

    The Vitel Wireless partnership has already attracted attention in latest Nigerian business news as telecom and fintech services continue merging across the country.

    Company Speaks on Partnership With OPay, Moniepoint

    Vitel Wireless Chief Operating Officer, Chudi Nwabueze, said the collaboration extends the company’s existing partnership structure beyond traditional banks into Nigeria’s fast-growing fintech ecosystem.

    “Vitel Wireless continues to showcase the close collaboration between financial services and telecom services by extending its partnership model with traditional banks to fintech giants such as OPay and Moniepoint,” Nwabueze said.

    The company noted that the move would simplify access to telecom services while improving convenience for users nationwide.

    Fintech, Telecom Collaboration Grows in Nigeria

    The latest development further highlights the growing relationship between Nigeria’s telecom and fintech industries.

    With millions of active users, platforms like OPay and Moniepoint have expanded beyond payments and transfers into broader digital service ecosystems.

    Industry observers say the growing fintech customer base now makes such platforms attractive distribution channels for telecom providers seeking wider reach.

    The Vitel Wireless telecom partnership has continued trending in breaking business news Nigeria today due to increasing interest in digital financial services and mobile connectivity.

    Vitel Targets Rural Connectivity Expansion

    Vitel Wireless Product Marketing Manager, Odera Ben-Chiobi, said the collaboration aligns with the company’s mission of expanding affordable connectivity across Nigeria.

    “By partnering with leading fintech platforms like OPay and Moniepoint, we are bringing telecom services closer to millions of Nigerians, particularly in rural areas where access has traditionally been limited,” she said.

    She added that the partnership would also contribute to financial inclusion by combining telecom services with digital financial tools within one ecosystem.

    Vitel Wireless currently operates nationwide through an infrastructure-sharing agreement with MTN Nigeria, allowing the company to leverage MTN’s existing radio infrastructure.

  • MTN Nigeria Transfers MoMo Control to Parent in ₦95.5bn Fintech Deal

    MTN Nigeria has confirmed a major restructuring of its fintech operations, with its parent company, MTN Group, set to acquire majority stakes in its mobile money businesses in a deal valued at ₦95.5 billion.

    MTN Group takes control of fintech units

    The update, disclosed ahead of the company’s April 30, 2026 Annual General Meeting, shows that MTN Group will acquire 60 per cent stakes in MoMo Payment Service Bank and Y’ello Digital Financial Services.

    The transaction effectively shifts control of both entities to the group level, while MTN Nigeria retains a 40 per cent minority interest.

    This marks a strategic pivot in how the telecom giant manages its fast-growing but capital-intensive fintech segment.

    New structure to centralise operations

    Under the new arrangement, both fintech businesses will be housed within a newly created holding entity known as Fintech HoldCo.

    The structure will be owned 60 per cent by MTN Group and 40 per cent by MTN Nigeria, allowing the parent company to consolidate fintech operations across multiple markets.

    The move is designed to streamline decision-making and align operations under a unified continental strategy.

    Losses drive strategic shift

    The restructuring follows mounting financial pressure from MTN Nigeria’s fintech investments, which recorded a ₦62.56 billion impairment in 2025.

    The impairment reflects ongoing losses within the fintech units, despite years of expansion and market penetration.

    By transferring majority ownership, MTN Nigeria reduces its financial exposure while freeing up capital to strengthen its core telecommunications business.

    Part of wider continental plan

    The move aligns with MTN Group’s long-term ambition to build a unified fintech platform across Africa.

    The company has been gradually restructuring similar operations in other markets, including Ghana and Uganda, as part of a broader consolidation strategy.

    Nigeria’s scale and complexity made it a key piece in this transition, with the latest development marking a significant milestone.

    Future growth and possible listing

    The restructuring also positions MTN Group for future partnerships and potential capital market opportunities.

    With fintech operations now centralised, the group could explore expansion strategies, including collaborations with global payment players and a possible public listing in the future.

    The development signals a shift from fragmented operations to a more coordinated fintech ecosystem across the continent.