NPS Processes 26.55m Transactions Worth N1.4trn as FirstBank, Fidelity Bank Lead Adoption
The Nigeria Inter-Bank Settlement System (NIBSS) Plc has commenced the rollout of the National Payment Stack (NPS), recording 26.55 million transactions valued at N1.4 trillion across 48 participating financial institutions as the country begins its transition from the 15-year-old NIBSS Instant Payment (NIP) platform.
NIBSS, in a statement issued on Tuesday, said the NPS was designed as a sovereign, ISO 20022-compliant digital infrastructure to modernise Nigeria’s payments ecosystem and ultimately succeed the legacy NIP system.
First Bank of Nigeria emerged as the leading institution by transaction volume, while Fidelity Bank recorded the highest aggregate transaction value.
Other financial institutions identified as major early adopters of the platform include Guaranty Trust Bank, Sterling Bank, Access Bank and Moniepoint.
The early transaction figures indicate a rapid uptake of the new payment infrastructure as banks and other financial institutions migrate their payment operations to a system designed to integrate payments, identity and data on a single intelligent rail.
According to NIBSS, the NPS has a multi-currency architecture intended not only to improve domestic payment processing but also to strengthen Nigeria’s capacity for cross-border transactions and regional financial interoperability.
The organisation said the adoption of ISO 20022 would provide the Nigerian financial system with richer and more structured transaction data, enabling greater automation and efficiency.
The standard is expected to support functions such as automated corporate reconciliation, merchant collections and request-to-pay invoicing, while giving financial institutions more information with which to process and monitor transactions.
NIBSS also said the NPS would consolidate single transfers and high-volume corporate disbursements on one platform, while supporting direct debits, asynchronous processing and deferred settlement options.
Security and compliance have also been built into the new infrastructure, with automated sanctions screening, account validation, end-to-end encryption and real-time risk scoring designed to identify potentially fraudulent transactions before execution.
The platform is equally expected to strengthen liquidity and treasury management among participating financial institutions by providing real-time visibility of net positions and continuous settlement accounting.
The Managing Director and Chief Executive Officer of NIBSS, Premier Oiwoh, described the NPS as more than an upgrade to existing payment infrastructure, saying it represented a fundamental shift towards a more intelligent financial ecosystem.
“The National Payment Stack represents an economic catalyst moving our financial infrastructure from basic transaction processing to comprehensive payment intelligence. By delivering an ISO 20022-compliant, multi-currency rail, we are laying the groundwork for unprecedented interoperability, heightened security, and seamless regional trade,” Oiwoh said.
He stressed that the success of the migration would depend on financial institutions completing the required technical and operational integration.
“To guarantee an optimal transaction experience for end-users, it is imperative that all participating financial services institutions immediately activate all related messages and fund transfer credit and debit processing rails,” he said.
Oiwoh said NIBSS would continue to provide technical support, detailed guidelines and integration assistance to financial institutions as they work towards compliance with Know Your Customer (KYC) validation requirements and more effective application programming interface (API) usage.
He added that coordinated implementation was necessary to prevent congestion and maintain the performance of the new platform.
“This proactive engagement will prevent platform congestion, enforce proper usage standards, and safeguard system performance as we work together with all institutions to complete integration for Funds Transfer Debit and advanced messaging capabilities,” he said.
The NIBSS chief executive said the ultimate objective was to achieve an industry-wide migration to the NPS and eventually retire the existing NIP infrastructure.
“Ultimately, our shared objective is to achieve a seamless, full industry cut-over to the National Payment Stack as we prepare to decommission our 15-year-old legacy NIP rail,” he added.
The Central Bank of Nigeria (CBN) has also backed the transition, with the Director of the Payments System Supervision Department, Dr Rakiya Opemi Yusuf, urging financial institutions to accelerate their integration with the NPS.
Yusuf made the call during a working visit to the NIBSS headquarters, reinforcing the apex bank’s regulatory support for the adoption of ISO 20022 across Nigeria’s payments system.
The migration comes against the backdrop of Nigeria’s rapid expansion of digital payments, driven by increased mobile banking, electronic transfers, fintech adoption and efforts by regulators to deepen financial inclusion.
NIBSS, which was incorporated in 1993 and commenced operations in June 1994, is owned by licensed Nigerian banks, including the CBN. It provides infrastructure for inter-bank payments, funds transfer and settlement and operates systems designed to reduce bottlenecks and risks associated with financial transactions between institutions.
The introduction of the NPS therefore marks a major stage in the evolution of Nigeria’s payment infrastructure, with its multi-currency capability and ISO 20022 architecture potentially positioning the country’s financial system for greater interoperability with international and regional payment networks.
With 26.55 million transactions already processed across 48 institutions, the immediate focus is now on completing integration across the financial services industry before the eventual retirement of the legacy NIP rail.
