The Nigeria Inter-Bank Settlement System (NIBSS) has announced that the first live transaction has been completed on the National Payment Stack (NPS). The transaction, which occurred on Friday between PalmPay and Wema Bank, marks a significant milestone for the NPS, which was built on the legacy of NIBSS Instant Payment (NIP).
A statement released by NIBSS explained that the transaction was completed in milliseconds with instant settlement, a testament to the NPS’s potential to transform Nigeria’s financial transactions. The initiative, tagged as a national infrastructure, is deployed to unify, modernise and future-proof digital payments in Nigeria.
“Developed as a next-generation payment infrastructure, the NPS embodies NIBSS’s commitment to speed, innovation, interoperability and security; all crucial pillars in supporting Nigeria’s digital economy,” it said in a statement.
In addition, the NPS is structured to replace the NIP with strategies in place for a smooth migration. NIBSS noted that the transfer will ensure a continued adherence to international standards by promoting greater transparency and establishing a payments foundation for the development of Nigeria’s Digital Public Infrastructure.
“Built on an advanced architecture, NPS enables speed, instant, reliable, and high-volume payment processing; interoperability, seamless integration across banks, fintechs, and other payment institutions,” NIBSS said.
Also Read: Examining NIBSS Instant Payments: Nigeria’s quiet fintech powerhouse.
NPS: NIBSS attempts to drive more innovation
Unveiled in June, the National Payment Stack (NPS) is designed to replace the NIBSS Instant Payments (NIP), referred to as Africa’s first real-time, account-based digital payment solution, introduced 14 years ago.
While explaining the idea behind NPS evolution, Managing Director/CEO of NIBSS, Premier Oiwoh, said that the initiative is designed to accelerate innovation in digital payments and deepen financial inclusion. He noted that the system will enhance the delivery of social intervention programs, tax payments, and revenue collection by government entities.
“This is more than just another payment system — it’s a transition to the future. With the NPS, we’ve laid the foundation for Nigeria’s financial evolution. It’s built to serve a dynamic ecosystem and meet the needs of businesses, governments, and individuals alike,” Oiwoh said in June.
For Nigeria to achieve a $1 trillion economy within the next eight years, Owioh mentioned that a modernised and robust payment infrastructure like the NPS is needed to stimulate growth and prepare the nation for the digital future. He added that the NPS offers smarter, faster, and more transparent payment experiences for all.
In aligning the initiative with global benchmarks and at the same time remaining relevant to Nigeria and Africa’s payment system, the NIBSS revealed that NPS is powered with features to achieve such an ambition. This includes real-time transactions and instant settlements, and advanced payment messaging via ISO 20022.
Others are the ability to enhance fraud management and transaction risk profiling, a unified rail for bulk and single payments and multi-currency readiness and cross-border capabilities
