Nigeria’s payments infrastructure operator, the Nigeria Inter-Bank Settlement System (NIBSS), has begun rolling out a new platform intended to replace the 15-year-old NIBSS Instant Payment (NIP) system.
NIBSS said on Tuesday that its National Payment Stack (NPS) had already processed 26.55 million transactions worth ₦1.4 trillion across 48 participating institutions.
FirstBank recorded the highest transaction volume, while Fidelity Bank processed the highest value, according to figures released by NIBSS.
Guaranty Trust Bank, Sterling Bank, Access Bank and Moniepoint were also listed among the early participants.
The figures indicate that the transition is already under way, but NIBSS has not provided a breakdown showing how much of the wider banking system has migrated from NIP to NPS.
Why is NIBSS replacing NIP?
NIP has been at the centre of Nigeria’s instant-transfer system since it was launched in 2011.
It was designed to move money between bank accounts in real time and became the infrastructure behind transfers offered through mobile banking, internet banking, suds, ATMs and other channels.
NIBSS says the new NPS is intended to go beyond processing transfers by combining payments, identity and data capabilities on a single infrastructure.
That means the change is potentially significant for banks, fintech companies and businesses that depend on fast and reliable electronic payments.
The CBN has said electronic payments have become an increasingly important part of Nigeria’s financial system, with internet transfers accounting for more than half of non-cash payment transactions by volume as of June 2024.
What is different about the new system?
NPS is built around the ISO 20022 messaging standard, which allows payment messages to carry more structured information than older formats.
In practical terms, this could make it easier for businesses to reconcile payments, automate collections and identify transactions.
NIBSS also says the platform supports direct debits, high-volume corporate payments, deferred settlement and request-to-pay services.
It has also been designed for multi-currency transactions and cross-border payments, although the announcement does not provide details on which countries or payment systems will initially be connected.
NIBSS says security controls have been built into the platform, including account validation, sanctions screening, encryption and risk scoring before transactions are completed.
Those features could help financial institutions detect suspicious transactions earlier, but the effectiveness of such controls will depend on how accurately participating institutions implement and use them.
Banks told to complete integration
NIBSS chief executive Premier Oiwoh said the transition would only work properly if financial institutions complete their technical integration.
“The National Payment Stack represents is 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.”
Mr Oiwoh also warned that institutions must activate the required payment messages and debit and credit processing rails.
“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 NIBSS would provide technical support and integration guidance while institutions complete their migration.
“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 added:“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.”
CBN backs migration
The Central Bank of Nigeria is supporting the move as part of a broader push to modernise the country's payments infrastructure.
NIBSS said Rakiya Opemi Yusuf, director of the CBN's Payments System Supervision Department, urged financial institutions to accelerate their integration during a recent visit to NIBSS headquarters.
The CBN has already required licensed payment systems to migrate to the ISO 20022 messaging standard.
The regulator has also introduced other measures aimed at improving the resilience and security of electronic payments.
In March 2026, the CBN introduced new requirements for instant-payment services, including real-time fraud monitoring, stronger identity verification and multi-factor authentication for customers who choose to disable instant transfers.
The bank has also pursued measures to reduce disruption in electronic payments, including requiring certain payment operators to maintain connections to both NIBSS and Unified Payment Services Limited.
The NPS rollout therefore forms part of a wider regulatory shift rather than being an isolated technology upgrade.
What does it mean for ordinary customers?
For most bank customers, the immediate change may not be visible.
Customers are unlikely to need to download a new application simply because their bank migrates its payment infrastructure.
The main test will be whether transfers remain fast, reliable and secure during and after the transition.
For businesses, the potential impact is greater.
A system capable of carrying richer transaction information could reduce manual reconciliation and make it easier to track payments.
Multi-currency and cross-border capabilities could also support businesses involved in regional trade if the promised connections become fully operational.
But the migration also creates risks.
A major change to infrastructure that processes millions of transactions requires careful testing.
Problems during the transition could affect banks, fintechs, merchants and customers if systems are not properly integrated.
That concern appears to be one reason NIBSS is pressing institutions to complete the required integration before NIP is decommissioned.
A bigger test for Nigeria's cashless economy
Nigeria's dependence on electronic payments has grown considerably since NIP was introduced.
NIBSS says NIP launched in 2011 with two banks and subsequently became a core part of the country's digital payment infrastructure.
The CBN has now set out a broader Payments System Vision 2028, built around interoperability, security, inclusion, innovation, trust and collaboration.
It also aims to strengthen Nigeria's links with regional and international payment systems.
That makes the success of NPS important beyond the banks operating it.
If the transition delivers more reliable transfers, better fraud detection and easier business payments, it could strengthen confidence in Nigeria's digital economy.
But the real measure will not be the number of transactions processed during the rollout.
It will be whether ordinary customers experience fewer failed transfers, quicker resolution of payment problems and stronger protection against fraud.
NIBSS has not given a final date for the complete industry-wide cut-over in the statement.
The next stage will therefore be the pace at which the remaining financial institutions complete integration and whether NIBSS can demonstrate that the new infrastructure performs reliably at national scale.
