June 23, (THEWILL) – The Nigeria Inter-Bank Settlement System (NIBSS) on June 17, 2025, officially launched the National Payment Stack (NPS), a next-generation payment infrastructure created towards revolutionising the future of payment across the continent. The initiative comes at the most opportune time.
As the implementation of the African Continental Free Trade Agreement (AfCFTA) gains traction, a major issue of concern is instituting a smooth payment system that enhances financial inclusion amid technological advancement and innovation.
Nigeria joined 53 other countries in Africa on January 1, 2021, to set in motion AfCFTA — the world’s biggest trade bloc, in terms of participating nations. The initiative aims towards speeding up easy and efficient intra-continental trade, such marked by few restrictions and less complex checks of goods across national borders and ports of entry.
Finance and economy experts have identified an efficient payment system as a unique selling point and key performance indicator in the implementation of the Continental Free Trade Agreement as the participating nations wedge through the environmental complexities involved.
Already, many Nigerian banks have launched into the continental space aiming to become global players with the identity of African heritage while exploring the huge opportunities. Some oil and gas firms have also joined.
According to reports, the banks have identified opportunities to extend financial services to the unbanked across the continent and deepen their services to the existing customers. This move is targeted at about 370 million Africans who do not have access to financial services, with Nigeria accounting for up to 60 million.
It has been confirmed that the AfCFTA will connect large swathes of the countries into a virtual trading zone, throwing up opportunities in banking and other sectors.
One of Nigeria’s major banks says it sees opportunities in over $24 billion revenues for the African electronic payments industry growing at 30 per cent yearly.
It also sees opportunities for over $3.6 billion in value of regulated consumer lending business in Nigeria, $950 billion total trade volume in sub-Saharan Africa, $100 billion in formal remittances and cross-border payments flows.
Others are over 400 companies with annual revenues of over $1 billion, hence the emphasis on efficient payment systems.
Birth of NPS
The unveiling of the NPS, a cutting-edge ISO 20022-compliant national payment infrastructure, will help to unlock the vast opportunities created by the AfCFTA initiative.
“This landmark unveiling reinforces NIBSS commitment to redefining digital payments in Africa and building on a legacy of innovation that began over a decade ago with the introduction of NIBSS Instant Payments (NIP); Africa’s first real-time account-based digital payment solution,” NIBSS said in a statement.
The presence of notable personalities that graced the unveiling both from Nigeria and across the continent, points to the priority accorded the birth of NPS. Among the personalities were Deputy Governors, Directors, and senior executives from over 20 African Central Banks, national switches, and the AfricaNenda Foundation, who are currently in Nigeria for a five-day Peer Learning Visit hosted by NIBSS.
Their presence underscored the critical role of regional collaboration in advancing inclusive, interoperable payment systems. According to NIBSS, the National Payment Stack firmly positions Nigeria as a continental leader in driving innovation, security, and interoperability, as the global payment ecosystem evolves.
AfCFTA impact
The AfCFTA plans to establish a single market, boost competitiveness among African countries, deepen economic integration and, according to the United Nations Economic Commission for Africa (UNECA), lift intra-African trade by as much as 52 per cent by 2027 (at the time). Many stakeholders agree that this requires an efficient and sustainable payment system as a lot of pre-export transactions are involved.
For instance, the Nigerian Office for Trade Negotiations (NOTN) has stated that exporters or agents aspiring to move products to countries under the AfCFTA must obtain permits, licences, certificates and other relevant documentation from appropriate government agencies. They must create a bill of entry, attach the permits from government agencies and make reservations with shipping or airline firms.
The NOTN further explains that Nigerian Customs Service is the issuer of the certificate, while the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) must vet the application. Documents such as bill of lading, certificate of analysis, certificate of origin and packing list are required for shipment to be executed.
Similarly, AfCFTA trading documents like supplier/producer’s declaration form, AfCFTA certificate of origin, and origin of declaration form are to be provided for ease of export.
“There must be a hitch-free, reliable payment system infrastructure to facilitate these transactions which could be frustrating when the process is cumbersome or problematic,” said Alex Omagbemi, a Lagos-based industrialist.
NIBSS on move
NIBSS has continued to push the boundaries of possibilities with major initiatives like the launch of AfriGO, Nigeria’s national domestic card scheme, and the recent roll-out of instant settlement on POS transactions for AfriGO cardholders.
With NPS, NIBSS introduces a unified, intelligent infrastructure that reimagines how payments are initiated, processed, and reconciled; bringing together payments, identity and data into a single, seamless ecosystem.
“This is more than a technology upgrade; it’s a national leap forward. The NIBSS Payment Stack reflects our vision to equip Nigeria and Africa with a platform that not only meets global standards but speaks to our unique payment realities.
“From Request-to-Pay to real-time settlements, automated reconciliation, and advanced dispute management, NPS is designed to deliver smarter, faster, and more transparent payment experiences for all,” said Premier Oiwoh, Managing Director and CEO, NIBSS,
THEWILL reports that electronic payment transactions in Nigeria, which run on the crest of NIBSS infrastructure, rose to an all-time high of N1.07 quadrillion in 2024 – a point never witnessed in the nation’s financial services history.
A quadrillion is an equivalent of N1,000 trillion – about $702.6 billion based on the closing exchange rate of N1,535/$1 on December 31, 2024.
According to available data, the value recorded on the NIBSS Instant Payment (NIP) represents a 79.6 percent increase over the N600 trillion recorded in the preceding year – 2023
While the e-payment data shows a steady increase throughout the 12 months of the year, the highest value was recorded in December.
The volume of transactions processed by NIBSS for the year also jumped from 9.7 billion in 2023 to 11.2 billion in 2024 represents a 15.5 percent increase in the volume of electronic transactions year on year.
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.
