On June 18, 2025, Nigeria launched a new payment technology, the National Payment Stack (NPS). The aim is to make instant payments work at near light speed.
Launched by the Nigeria Inter-Bank Settlement System (NIBSS) domiciled at the Central Bank of Nigeria (CBN), the new technology is further intended to correct the failings of the NIBSS Instant Payments (NIP), which has been operational since 2011.
The NIP system was designed to work this way: When you initiate a transaction via bank app, USSD code, or POS, it is routed to the central switch of CBN’s NIBSS, which verifies and routes it to the receiving bank. The bank then ensures the money moves from the sender to the receiver after passing all checks. The last stage is the confirmation of the transaction, where both parties are supposed to receive notifications within seconds.
However, problems often arise in the last two steps of the processes—settlement and confirmation. Nigerians have over the years complained that the NIP process is slow and bugged by network dodginess that delays payment confirmation. Stalled transactions defeat NIP’s original aim of seamless and fast payments.
Sometimes, senders are debited even when the receiver is not credited, only to be reversed after many days, weeks, or even months—sometimes after time-consuming complaints involving physical visits to a bank’s branch.
Last year, users across fintech platforms like Opay and commercial banks like GTBank and Access Bank reported that NIP services were down during peak hours.
These challenges contributed to a decrease in the volume of cashless transactions in Nigeria, dropping from N39.58 trillion to N37.67 trillion in 2022, according to official reports.
The newly launched NPs system is expected to correct the process. It includes more efficient and broader tools that would push Nigeria toward a sovereign, inclusive, and competitive financial infrastructure.
These features and tools include a national card scheme called AfriGo, which is Nigeria’s alternative to Visa or Mastercards; A national payment gateway allowing direct switching and settlement without relying on banks or foreign processors; open APIs that make it easier for fintechs and other players to build services; and a decentralized structure that allows for multi-switch architecture.
With this system in place, a typical transaction will work like this: A sender uses a payment platform or fintech solution like OPay, a mobile wallet, USSD, POS, or a card to initiate a transaction. Unlike the NIP system, the sender doesn’t have to use a bank. The sender’s payment service provider (PSP) will then prepare the transaction details.
The next step is the communication with the national payment gateway, using an open API. Which means the transaction is no longer routed through the NIBSS, allowing non-bank actors to participate directly.
In the third step, the payment gateway switches the transaction to the receiving institution, platform, or bank, using AfriGo or some other switch tool the system considers appropriate.
The next step is verification and authentication, which could involve know your customer verification via BVN, CAC registration number, or TIN verification. This verification automatically confirms transaction readiness and availability.
Settlement (transfer of funds from the sender’s account to the receiver) and confirmation follow immediately after the verification, with both parties receiving instant notifications.
If the new NPS system works as planned, it would be a game changer for financial transactions in Nigeria.
“It’s a transition to the future. With NPS, we didn’t just build another instant payment solution; we laid the foundation for Nigeria’s financial future,” said Premier Oiwoh, managing director of NIBSS
“The strategic objective of building the NPS is to drive digital payment innovation, deepen financial inclusion within the ecosystem, and improve government social intervention payments, tax payments, and revenue collection.”
Nigeria launched the National Payment Stack (NPS) on June 18, 2025, to enhance the speed and reliability of instant payments.
Developed by the Nigeria Inter-Bank Settlement System (NIBSS) at the Central Bank of Nigeria, the NPS is designed to address the failings of the existing NIBSS Instant Payments (NIP) system, which often leads to delays and unconfirmed transactions, frustrating users and causing a decline in cashless transactions.
The new system introduces multiple innovations, including AfriGo, a national card scheme that provides an alternative to Visa and MasterCard; a national payment gateway that facilitates direct switching and settlement without relying on banks or foreign processors; and open APIs that enable fintech and other industry players to build services. This structure also permits non-bank entities to directly participate, eliminating the need to route transactions through the NIBSS.
Through NPS, transactions will be faster and more reliable, involving direct communication with the payment gateway and efficient verification processes.
This system promises to revolutionize financial transactions in Nigeria, promote digital payment innovation, enhance financial inclusion, and improve governmental social intervention efforts and tax collections.
As noted by NIBSS managing director Premier Oiwoh, the NPS lays the foundation for Nigeria's financial future.
