NIBSS National Payment Stack to Transform Nigerian Instant Payments

The National Payment Stack (NPS), a new payment system introduced by the Nigeria Inter-Bank Settlement System (NIBSS), aims to transform quick and seamless payments across the nation.

NIBSS Instant Payments (NIP), Africa’s first real-time account-based digital payment system, was established 14 years ago. The NPS continues this heritage.

Mr. Premier Oiwoh, the Managing Director of NIBSS, stated during the launch in Lagos on Tuesday that the NPS was designed to get Nigeria ready for the digital payment future.

It’s a shift toward the future. We set the groundwork for Nigeria’s financial future with NPS, not simply another rapid payment system,” Oiwoh stated.

The NIBSS MD lists the following as some of the new payment platform’s features:

• Instant settlements and real-time transactions
• Using ISO 20022 for advanced payment message
• Single and bulk payments on a single rail
• A more effective mechanism for managing disputes
• KYC validation via TIN, RC Number, or BVN
• Direct Debit and Request-to-Pay features
• Cross-border potential and multi-currency preparedness
• Sandbox-enabled integration for partners in as little as 48 hours
• Enhanced capacity for risk grading and fraud management

The strategic goal of developing the NPS, according to Oiwoh, is to promote innovation in digital payments, increase financial inclusion in the ecosystem, and boost government revenue collection, tax payments, and social intervention payments.

He continued by saying that an upgraded payment rail, like the NPS, is necessary to stimulate and get Nigeria ready for the future given its goal of creating a $1 trillion economy in eight years.

“Our goal of providing Nigeria and Africa with a platform that not only satisfies international standards but also takes into account our particular payment realities is reflected in the NIBSS Payment Stack.

“NPS is built to deliver smarter, faster, and more transparent payment experiences for everyone,” he stated, referring to Request-to-Pay, real-time settlements, automatic reconciliation, and improved dispute management.

Speaking at the ceremony, Mr. Philip Ikeazor, the Chairman of the NIBSS Board and Deputy Governor, Financial System Stability at the Central Bank of Nigeria, called the NPS an important and major turning point for the Nigerian financial ecosystem and NIBSS.

Ikeazor, who was accompanied by Mr. Musa Jimoh, the CBN’s Director of Payment System Policy, stated that the NPS establishes the groundwork for increased inclusivity, increased trust, and the upcoming wave of innovation in the digital payment space.

Speaking as well, Mr. Babajide Sanwoolu, the governor of Lagos State, praised NIBSS for its capacity to unite diverse stakeholders in order to develop the domestic infrastructure.

This type of strategic relationship evolves to what Africa and Nigeria require to thrive in our constantly changing digital environment.

The governor, who was represented by Mr. Samuel Egube, deputy chief of staff, stated, “Lagos, the commercial hub of Nigeria, is thrilled to support innovations that make doing business easier, safer, more transparent, and more inclusive.”

We are expected to be aware that NIBSS, which was established in 1993 to offer the infrastructure necessary for smooth payments, settlements, and identity verification, is owned by the CBN and the nation’s deposit money banks.

With significant projects like the introduction of AfriGO, Nigeria’s national domestic card program, and the recent introduction of quick settlement on point-of-sale transactions for AfriGO cardholders, the organization has persisted in pushing the envelope of what is possible.

By facilitating richer data, enhanced transparency, and end-to-end traceability throughout the financial ecosystem, NPS, which was founded with interoperability at its core, promotes economic inclusion and payment system modernization. Mr. Musa Jimoh, Director of Payment System Policy at the Central Bank of Nigeria, skillfully represented Chief Host Mr. Philip Ikeazor, Deputy Governor, Financial System Stability at the Central Bank of Nigeria and Chairman of the NIBSS Board, at the event. He gave a heartfelt and captivating welcome speech. He welcomed the distinguished visitors with grace and urged them to unwind and take in the evening, which promised to be a display of creativity, teamwork, and cultural diversity. He continued by highlighting the importance of the National Payment Stack (NPS), characterising it as a turning point for Nigeria’s financial ecosystem as well as NIBSS; it establishes the groundwork for increased inclusion, deeper trust, and the upcoming wave of innovation in the digital payment space.

Lagos State Executive Governor Mr. Babajide Olusola Sanwo-Olu, ably represented by Mr. Samuel Egube, Deputy Chief of Staff, graced the launch event with live demonstrations of the National Payment Stack (NPS) functionalities and a goodwill message reaffirming the government’s commitment to fostering innovation in the digital payment space. The CEO and Director General of the National identification Management Commission (NIMC), Abisoye Coker-Odusote, was also present and highlighted the critical role that digital identification plays in promoting national development and financial inclusion. The AfricaNenda Foundation’s CEO, Dr. Robert Ochola, gave a powerful policy keynote address at the event. Jacqueline Jumah, AfricaNenda’s Director of Advocacy & Capacity Development, spoke on his behalf. The future of digital payments in Nigeria and throughout Africa was examined in her speech and subsequent industry-led conversations.

Senior executives, directors, and deputy governors from more than 20 African central banks, national switches, and the AfricaNenda Foundation were welcomed to the occasion. They are now in Nigeria for a five-day peer learning visit organized by NIBSS. Their presence demonstrated how important regional cooperation is to the development of inclusive, interoperable payment systems. The National Payment Stack solidifies Nigeria’s position as a continental leader in promoting innovation, security, and interoperability as the global payment ecosystem changes.