November 23, (THEWILL) — Recently, the global economy has focused on the Nigeria Inter-Bank Settlement System (NIBSS). This attention stems from the energy and dedication the organisation has shown in promoting the digital payment system across Africa.
NIBSS offers the electronic payment framework that enables same-day clearing and settlement of inter-bank transfers, instant payment transactions and various financial operations in Nigeria. It functions as a central switch, allowing interoperability among banks and other financial entities to process payments instantly, securely, and efficiently.
Industry stakeholders and experts have acknowledged NIBSS’s role as a quiet game-changer in transforming the nation’s financial inclusion strategy. In this capacity, the organisation positions itself to play a significant role in the execution of the landmark African Continental Free Trade Area (AfCFTA) initiative through a seamless payment system.
Endless Milestones
In 2025, the world experienced a surge of digital innovation narratives from NIBSS. These are significant accomplishments that are celebrated quietly yet have remarkable effects that have prominently placed Nigeria on the global stage.
In November 2025, NIBSS became the first payment system in Africa to reach a mature inclusivity level on the Africa Inclusivity Spectrum. This recognition highlights its efforts in creating payment systems that are accessible and cater to the needs of all users, including the unbanked.
It also includes features that enhance real-time digital access, robust dispute resolution, and consumer protection. Achieving this “Mature” rating aligns Nigeria’s payment infrastructure with international standards for excellence.
This achievement was revealed during the launch of the State of Instant Payment Systems (SIIPS) 2025 report in Eswatini (Southern Africa) on Thursday, November 13, 2025, with Nigeria receiving a standing ovation from bankers, investors, and other participants at the venue.
This unique infrastructure, National Payment Stack (NPS), launched in June 2025, is “powered by the Nigeria Inter-Bank Settlement System (NIBSS) to unify, modernise, and future-proof digital payments in Nigeria.”
In response to this significant milestone, Premier Oiwoh, the Managing Director/CEO of NIBSS, remarked that the journey had been a long time in the making.
Mr. Oiwoh stated, “The establishment of the industry dispute resolution platform, initiated by the Central Bank of Nigeria (CBN), was instrumental in achieving this milestone,” further noting that “these measures have significantly decreased the number of disputes within the industry.”
Renewed success story
On November 9, 2025, NIBSS announced that the Nigerian fintech firm, PalmPay, in partnership with a Tier-2 deposit money bank, Wema Bank, had successfully executed the first live transaction on the newly launched National Payment Stack (NPS), marking a crucial development in the country’s digital payment ecosystem.
According to NIBSS’s announcement, this landmark transaction occurred precisely at 11:56 AM on Friday, November 7, 2025, and was completed in mere milliseconds with immediate settlement, a remarkable accomplishment that signals the dawn of a new era defined by seamless, secure, and inclusive financial transactions in Nigeria.
This event took place approximately five months after the introduction of NPS by NIBSS in June 2025, which is an innovative digital payment infrastructure that successfully completed its first transaction in November.
Reflecting on this latest significant milestone, Oiwoh reiterated that the journey had been a long time coming. He stated, “The establishment of the industry dispute resolution platform, driven by the Central Bank of Nigeria (CBN), was crucial in achieving this milestone,” adding that “the measures have effectively reduced the number of disputes in the industry.”
The regulated consumer lending sector in Nigeria presents opportunities exceeding $3.6 billion, alongside a total trade volume of $950 billion in sub-Saharan Africa, and $100 billion in formal remittances and cross-border payment flows. Additionally, there are over 400 companies generating annual revenues surpassing $1 billion, which underscores the importance of efficient payment systems.
Fintech Expansion
The new payment initiative by NIBSS is set to enhance the National Digital Trustmark (NDTM) project recently launched by the Federal Government, which aims to strengthen the nation’s digital economy.
The NDTM initiative, established by the National Information Technology Development Agency (NITDA) under the supervision of the Federal Ministry of Communications, Innovation, and Digital Economy, is designed to foster trust, transparency, and accountability within Nigeria’s expanding online marketplace.
Officials are hopeful that this initiative will aid the government’s long-term goal of improving digital inclusion, enabling more small and medium enterprises (SMEs) to thrive online while ensuring compliance with national ICT regulations.
However, experts emphasise that NIBSS plays a crucial role in advancing Nigeria’s digital economy and fostering financial inclusion, particularly driven by fintechs, as demonstrated this year. “The success of Nigeria’s digital economy initiative hinges on the contributions of NIBSS, which is responsible for developing the essential infrastructure to achieve this objective,” remarked Engr Mike Akanor, a fintech expert.
Recent observations indicate that Nigeria’s electronic payment sector continued its strong upward trend in July 2025, with total digital transactions reaching ₦384 trillion, according to new data from the Central Bank of Nigeria (CBN).
This figure represents one of the highest monthly transaction values ever recorded and marks a substantial increase from the ₦280 trillion noted in August 2024, underscoring the increasing reliance on digital channels for personal, commercial, and governmental transactions
Data from the central bank revealed that 4.12 billion transactions were conducted across various platforms in July alone — a rise from 3.9 billion during the same period last year.
Furthermore, at the Nigeria Fintech Week 2025, which took place in Abuja in October 2025, CBN Governor, Olayemi Cardoso, attributed this growth to ongoing reforms in the payment system, increased consumer confidence, and improved fintech innovation.
“The rise in electronic transactions signifies Nigeria’s transition towards a digitally inclusive economy,” Cardoso stated, further adding, “Our regulatory reforms continue to enhance trust, security, and accessibility across payment channels.” He underscored the central bank’s commitment to fostering the fintech sector through policies that guarantee a secure, competitive, and efficient payment environment capable of fulfilling the requirements of a modern digital economy.
Digital thinking outcome
Industry analysts note that this increase reflects a broader behavioral shift among Nigerians, who are progressively choosing the convenience, speed, and accessibility offered by digital finance platforms. The widespread adoption of mobile banking applications, POS terminals, and financial technology solutions has further propelled this trend.
Data from NIBSS shows that the value of instant payment transactions has seen substantial growth over the past five years, bolstered by improvements in digital infrastructure and more reliable transaction networks.
A report from the Fintech Association of Nigeria (FintechNGR) in March 2025 indicates that fintech companies remain the cornerstone of Nigeria’s shift towards a cashless economy, delivering affordable, real-time financial services to millions, including those in the informal sector.
Services such as Opay, Moniepoint, PalmPay, and Paga have expanded digital access for traders, artisans, and transport workers who were previously excluded by the traditional banking system. The association emphasized that the rapid expansion of agency banking has further facilitated this transition.
The association emphasised that the rapid expansion of agency banking networks, mobile money agents, and interoperable wallets has been instrumental in bridging the financial divide between urban and rural regions, greatly facilitating transaction growth and fostering financial inclusion.
Through partnerships with the NIBSS, the central bank has improved real-time gross settlement systems and payment infrastructures, reduced failure rates, and bolstered public trust. Advancements in cybersecurity and more stringent compliance regulations have further strengthened confidence among users and businesses, ensuring that the increase in digital payments is both secure and sustainable.
The persistent rise in digital transactions carries significant implications for fiscal transparency, financial inclusion, and the effectiveness of policies. Analysts note that as a larger volume of payments moves online, monitoring liquidity flows becomes easier, thereby enhancing governmental oversight and improving the efficiency of revenue collection and the execution of monetary policy.
Looking ahead, experts predict that ongoing investment in fintech infrastructure has improved connectivity, and consumer education will continue to support the upward trajectory in e-payment volumes.
Future Outlook
In anticipation of future developments, specialists project that sustained investment in fintech infrastructure, enhanced connectivity, and consumer education will maintain the growth of e-payment volumes throughout the year.
As digital payments become essential to commerce and financial inclusion, Nigeria’s transition towards a cashless economy is making notable strides. With regulators, banks, and fintech innovators collaborating more closely, the country appears set to emerge as one of Africa’s most dynamic and robust digital payment hubs.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
