Nigeria’s fintech ecosystem is entering a transformative phase as the National Payment Stack (NPS) officially debuts with its first live transaction. The historic transfer between PalmPay and Wema Bank signals the nation’s shift to a next-generation, unified payment infrastructure designed to streamline digital transactions and enhance financial services across the country.
Developed by the Nigeria Inter-Bank Settlement System (NIBSS), the NPS replaces the long-standing NIBSS Instant Payment (NIP) platform, introducing millisecond-fast transactions and richer, structured data. Built on the ISO 20022 international financial messaging standard mandated by the Central Bank of Nigeria (CBN), NPS ensures global compatibility and positions Nigeria at the forefront of modern payment innovation.
The upgraded platform offers detailed financial messaging, capturing information such as the purpose and reason for each transaction. This enhanced data quality is vital for faster dispute resolution, improved anti-money laundering compliance, and greater transparency across the financial system. Unlike the older NIP system, NPS supports instant settlement, boosting liquidity and confidence for both banks and fintechs.
For consumers, the NPS promises quicker payments, smoother refunds, and faster dispute resolution, while businesses benefit from simplified reconciliation, easier compliance, and streamlined bulk payments like payroll. By aligning with global standards, the platform also supports multi-currency transactions and cross-border integration, including compatibility with systems like the Pan-African Payment and Settlement System (PAPSS).
NIBSS emphasizes that the NPS is Open Banking-ready, featuring AI-powered behavioral analytics linked to digital identities to detect and prevent fraud. Banks, fintechs, and payment service providers are encouraged to complete onboarding promptly, ensuring a seamless transition from the legacy NIP system and delivering a secure, efficient, and transparent digital payment experience for all Nigerians.
source: Business day