The National Payment Stack (NPS)’s first live transaction has confirmed the country’s transition to a next-generation payment infrastructure as fintechs take centre stage.
The transaction was carried out between PalmPay and Wema Bank, which officially marks the dawn of a new, unified ecosystem built to transform digital payments in Africa’s largest economy.
The NPS is built on the ISO 20022 international standard for financial messaging, a directive mandated by the Central Bank of Nigeria (CBN). This is the key difference from the legacy NIP system, which used the older SOAP protocol.
Premier Oiwoh, Managing Director/CEO of NIBSS, described the platform as “the new engine driving Nigeria’s next phase of payment innovation,” emphasising its role in supporting the nation’s economic ambitions.
Developed by the Nigeria Inter-Bank Settlement System (NIBSS), the NPS is set to replace the long-standing NIBSS Instant Payment (NIP) platform, with a promise of millisecond-fast transactions, richer data, and global compatibility.
Financial messages now carry more detailed, structured information, including the purpose and reason for a transaction. This enhanced data quality is crucial for faster dispute resolution and improved compliance with anti-money laundering regulations.
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Unlike the NIP’s deferred net settlement, the NPS enables instant settlement of funds, vastly improving liquidity and confidence for financial institutions. By aligning with the ISO 20022 global standard, the NPS is built with multi-currency readiness and cross-border capabilities, ensuring seamless integration with international systems like the Pan-African Payment and Settlement System (PAPSS).
The migration to the NPS is not just a backend technicality but is expected to deliver immediate, tangible benefits across the financial ecosystem. For consumers, this means a defined by faster transaction speeds and significantly improved clarity, leading to quicker refunds and dispute resolutions.
For businesses, the system facilitates easier reconciliation, simplifies compliance, and allows for seamless bulk payments such as payroll, streamlining operational efficiency.
The NPS is built to be Open Banking-ready and includes AI-powered behavioural analytics tied to digital identity to flag and guard against fraud, enhancing security across the board.
NIBSS urges all banks, fintechs, and payment service providers to complete their onboarding to the new infrastructure, ensuring a smooth transition away from the NIP platform and delivering a superior digital payment experience for all Nigerians.
