Nigeria digital payment infrastructure expansion

Nigeria is advancing its financial technology sector through the deployment of new digital payment infrastructures. The Nigeria Inter-Bank Settlement System (NIBSS) has introduced the National Payment Stack (NPS), a platform designed to support instant bank transfers, QR code payments, and phone number-based transactions.

To improve security and efficiency, the NPS utilizes the international ISO-20022 messaging standard, which aims to reduce transaction failures and enhance real-time fraud monitoring. While the national instant payment system saw volumes exceeding ₦1 quadrillion in 2024, contactless payments have remained low at approximately 0.1% due to a lack of NFC-enabled devices and point-of-sale terminals.

In parallel, Interswitch Group is expanding tokenised payment infrastructure to promote digital wallets and contactless payments. This technology replaces sensitive card details with digital tokens to strengthen transaction security. Efforts to increase adoption include new partnerships with merchants, such as the fast-food chain Chicken Republic, to drive consumer demand for tap-to-pay technology.