The Nigeria Inter-Bank Settlement System (NIBSS) has launched the National Payment Stack (NPS), a payment infrastructure designed to improve the nation’s and Sub-Saharan Africa’s (SSA’s) digital payment systems.
The NPS, which is ISO 20022 compliant and debuts after about 14 years ago after the launching of Africa’s first real-time account-based digital payment system, NIBSS Instant Payments (NIP), also aims to transform quick and seamless payments across the nation.
Speaking during the launch of the NPS in Lagos, Managing Director of NIBSS, Mr. Premier Oiwoh, said the NPS was designed to get Nigeria ready for the digital payment future by setting the groundwork for Nigeria’s financial future with NPS, not simply another rapid payment system.
He listed the some of the new payment platform’s features as including 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; and Enhanced capacity for risk grading and fraud management
According to him, the strategic goal of developing the NPS by the NIBSS is to promote innovation in digital payments, increase financial inclusion in the ecosystem, and boost government revenue collection, tax payments, and social intervention payments.
Oiwoh explained that an upgraded payment rail, like the NPS, was necessary to stimulate and get Nigeria ready for the future given its goal of creating a $1 trillion economy in eight years.
He clarified: “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”, the expert added.
Delivering his address at the forum, chairman of the NIBSS Board and Deputy Governor, Financial System Stability at the Central Bank of Nigeria (CBN), Mr. Philip Ikeazor, described the NPS as an important and major turning point for the Nigerian financial ecosystem and NIBSS.
The banker pointed out that the NPS established the groundwork for increased inclusivity, increased trust, and the upcoming wave of innovation in the digital payment space.
Also, Governor of Lagos State, Mr. Babajide Sanwo-Olu, who was represented by his Deputy Chief of Staff, Mr. Samuel Egube, commended the NIBSS for its capacity to unite diverse stakeholders in order to develop the domestic infrastructure.
He noted that this type of strategic relationship aligned with what Africa and Nigeria required to thrive in the constantly changing global digital ecosystem.
Sanwo-Olo said: “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”, he added.
In her remarks, Director-General of the National identification Management Commission (NIMC), Abisoye Coker-Odusote, highlighted the critical role that digital identification had been playing in promoting national development and financial inclusion.
Experts believe that The NPS will consolidate Nigeria’s frontline roles as a continental leader in promoting innovation, security, and interoperability as the global payment ecosystem changes.
