NPS processes 26.55m transactions worth N1.4tn

The National Payment Stack, Nigeria's recently introduced digital payment infrastructure, has swiftly gained traction among commercial institutions, handling 26.55 million transactions worth N1.4 trillion in its initial operational phase. Orchestrated by the Nigeria Inter-Bank Settlement System Plc, this multi-currency system integrates payment processing and intelligence, consolidating multiple services onto a unified platform designed to supplant the outdated NIBSS Instant Payment system.

Leading entities such as First Bank of Nigeria and Fidelity Bank are already capitalizing on the network's potential, with the former topping transaction volume while the latter claims the highest transaction value. Other prominent early adopters include Guaranty Trust Bank, Sterling Bank, Access Bank, and Moniepoint. The platform's innovation lies in its use of ISO 20022 data architecture, which enriches transaction metadata, automates corporate reconciliation, eases merchant collections, and facilitates request-to-pay invoicing.

It also streamlines individual transfers and large-scale corporate payments onto a single rail, bolstered by security measures like automated sanction screening, account validation, end-to-end encryption, and real-time risk scoring to counteract potential fraud. NIBSS Managing Director and CEO, Premier Oiwoh, underscored the platform's transformative potential, positioning Nigeria's payments landscape for greater intelligence and efficiency.

The new system's impact on the national payments ecosystem is clear, but full implementation hinges on all financial institutions aligning technically and operationally. NIBSS is urging all financial services providers to activate their debit and credit processing rails to prevent platform congestion. The Central Bank of Nigeria's Dr. Rakiya Yusuf reiterated the regulator's support for mandatory integration, anticipating the eventual retirement of the 15-year-old legacy NIBSS Instant Payment rail.