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NIBSS clears N22trn worth of cheques in one year

*Gross earnings rise to N1.2bn

By Babajide Komolafe

Nigeria Interbank  Settlement System (NIBSS) cleared N22 trillion worth of cheques in its operating year ended the operating year ended 30th June 2009.

This represents 9.8 per cent increase when compared with the previous year level.

The company also  recorded a 56 per cent increase in its gross earning which rose to N1.2bn during the year.

Addressing shareholders at the 16th Annual General Meeting of the company in Lagos on Thursday, NIBSS Chairman, Mr Abayomi Atoloye, said “Notwithstanding these very challenging and turbulent conditions created by the global economic meltdown, total volume of cheques cleared through the automated clearing system of your company during the year rose by 10.0 per cent to N13,315,173, while the value increased by 9.89 per cent to N21.978trn, compared to their respective levels in the preceding year.

“Consequently, the overall gross income of the company buoyed by improved patronage and increased earnings from the investments of the company rose by about 56.0 per cent to N998m, from N639m recorded in the preceding year.

“Nonetheless, the general expansion in operations during the year induced an increase in the level of operating costs during the review year to N963m, compared with previous year’s N594m.

“Consequently, the company’s profit before tax grew marginally by 3.6 per cent to N249m over the N240m recorded in the preceding year.

“In addition, net asset grew by 5 per cent to N2,255m. With this performance, I am confident that your company remains solid and capable of surviving this turbulent season.”

On outlook for the current operating year, he said “During the financial year ended 30th June, 2009, your company expanded its branch network to Port Harcourt and Kano clearing zones, as planned in the strategic business programme of the company while automated clearing technology (with full functionality for cheque truncation and cheque-image exchange ) has also been deployed to Ibadan and Benin branches.

“With these accomplishments, we are encouraged to leverage on the immense potentials of the system to render NACS as the platform for the envisaged revolution in the payment system mechanism in Nigeria.

“I am happy to report also that guidelines for Transaction switching as well as the regulatory framework for Mobile Payment Services in Nigeria were released to the stakeholders in the industry in June 2009.


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