How Strategic  Shift of NIBSS Is  Rewiring Nigeria’s Payments System

Nigeria Inter-Bank Settlement System  has  stabilised Nigeria’s payment ecosystem  by eliminating the dreaded ‘Christmas Freeze’  and  also positioned the country as a continental leader in digital finance, writes Nume Ekeghe

In Nigeria’s financial technology landscape, stability has emerged as one of the clearest markers of progress   especially during moments of peak demand. Over the past three festive seasons, the Nigeria Inter-Bank Settlement System (NIBSS) has achieved what once seemed elusive: seamless electronic transactions throughout Christmas. For three consecutive years, the dreaded “Christmas freeze”  a wave of transaction failures during holiday surges  has been absent, replaced by uninterrupted digital flows.
At the heart of this transformation lies deliberate leadership and strategic investment under Managing Director and Chief Executive Officer of NIBSS, Premier Oiwoh. His approach blends stability, innovation, and inclusion, reshaping the backbone of Nigeria’s payment ecosystem.

For many Nigerians, the festive season used to be synonymous with frustration. Banks and payment platforms struggled to cope with surging transaction volumes, leading to what was popularly described as “Christmas freeze”a period when transfers failed, payments hung in limbo, and merchants endured sleepless nights reconciling accounts.
That era is now history. For three straight festive seasons, Nigerians have celebrated without the dreaded freeze. Transactions flowed seamlessly, even at peak demand. This achievement is more than symbolic; it reflects the robustness of NIBSS’s infrastructure and its ability to scale under pressure.
The NIBSS boss has often emphasised that reliability is the foundation of trust in digital payments. By eliminating seasonal disruptions, NIBSS has restored confidence among consumers and merchants alike. The “Christmas without freeze” milestone is now a recurring headline, a testament to the system’s maturity and resilience.

Evolution of Payment Systems: From NIP to NPS

The journey of NIBSS is inseparable from the evolution of Nigeria’s payment systems. Over a decade ago, NIBSS introduced the NIBSS Instant Payments (NIP), Africa’s first real-time, account-based digital payment solution. NIP transformed the way Nigerians moved money, enabling instant transfers across banks and fintech platforms.
But innovation did not stop there. In 2025, NIBSS unveiled the National Payment Stack (NPS), a unified, ISO 20022-compliant infrastructure designed to modernise and simplify Nigeria’s payment ecosystem.

The National Payment Stack (NPS) integrates payments, identity and data into a single intelligent platform designed to modernise Nigeria’s digital payments ecosystem. It enables real-time settlement across single, bulk and merchant transactions, while supporting automated reconciliation and advanced dispute management. The platform also incorporates request-to-pay and direct debit functionalities, alongside robust know-your-customer verification using national identifiers such as the Bank Verification Number (BVN), Tax Identification Number (TIN) and RC Number. With multi-currency capability and cross-border potential, the NPS positions Nigeria as an emerging regional hub for digital finance.

The unveiling of NPS was not just a domestic event. It attracted senior officials from central banks and payment infrastructure providers across 20 African countries, underscoring Nigeria’s leadership role in shaping continental payment systems.
Oiwoh described the NPS as “more than a technology upgrade; it’s a national leap forward.” His words capture the ambition behind the project: to equip Nigeria with a platform that meets global standards while addressing local realities.
On November 7, 2025, at exactly 11:56 a.m. NIBSS executed the first live transaction on the National Payment Stack. The transfer, between PalmPay and Wema Bank, was processed in milliseconds with instant settlement.

This landmark moment demonstrated the speed, scalability, and reliability of the new infrastructure. It also signaled Nigeria’s readiness to embrace a future where payments are not only instant but also secure, inclusive, and interoperable across borders.
The transaction was more than a technical milestone; it was a symbolic leap into the next phase of Nigeria’s fintech evolution. By aligning with the ISO 20022 international messaging standard, NPS enhances data quality, regulatory transparency, and global compatibility. It lays the foundation for Nigeria’s emerging Digital Public Infrastructure, a critical driver of the digital economy.

Reduction in Transaction Fees: Driving Inclusion

Beyond infrastructure, NIBSS has also addressed affordability. In July 2023, transaction fees on the NIP platform were reduced from N5 to N3.75. In January 2026, the fee was further cut to N2 per transaction.
This reduction is not trivial. For millions of Nigerians who rely on instant payments daily, lower fees translate into real savings. For financial institutions, it eases cost pressures and encourages wider adoption of digital channels.
Oiwoh, in a circular to institutions, noted that the decision aligned  with the Central Bank of Nigeria(CBN)’s drive to promote affordable, efficient, and accessible digital payment channels. It also reflects NIBSS’s long-term vision of making instant payments nearly free at the point of use.
This pricing strategy is part of a broader effort to remove cost barriers and drive mass adoption of digital payments. By lowering fees, NIBSS is not only stimulating transaction volumes but also reinforcing its role as a critical pillar of Nigeria’s digital public infrastructure.

Continental Recognition and Collaboration

NIBSS’s achievements have not gone unnoticed. The NIP platform was recently rated “Mature” on the AfricaNenda Foundation’s Inclusivity Spectrum, becoming the first instant payment system in Africa to attain the highest level of inclusivity. This rating reflects strong performance across governance, accessibility, interoperability, and consumer protection.
The launch of NPS also attracted regional attention. Deputy Governors, Directors, and senior executives from over 20 African central banks attended the unveiling in Lagos, highlighting the importance of regional collaboration in advancing inclusive, interoperable payment systems.
Nigeria’s leadership in digital payments is now recognized across the continent. With NPS, the country is positioned as a continental hub for innovation, security, and interoperability in financial technology.

Premier Oiwoh’s Stewardship, A Defining Era

At the centre of these achievements is the stewardship of Premier Oiwoh, whose tenure has marked a defining era for Nigeria’s payment ecosystem. Since taking the helm, he has prioritised reliability, affordability and innovation, steering NIBSS through a series of transformative milestones. Under his leadership, the long-standing challenge of the “Christmas freeze” has been resolved, the National Payment Stack has been launched, and the first live transaction on the new platform successfully executed. This period has also seen transaction fees reduced to their lowest levels in history, reinforcing the drive towards broader financial inclusion.
Oiwoh’s leadership blends technical foresight with strategic collaboration, with a consistent emphasis on interoperability, accessibility and cost efficiency. His approach has helped reposition Nigeria’s payment infrastructure as more resilient, inclusive and future-ready, underscoring a tenure that is reshaping the foundations of digital finance in the country.

Looking Ahead: Towards a Zero-Rated Framework

While the reduction of transaction fees to N2 is a significant milestone, NIBSS has signaled its intention to go further. Oiwoh has publicly indicated that the organisation is exploring a transition away from per-transaction charges towards alternative pricing models.
The ultimate goal is a zero-rated framework where instant payments are free at the point of use. Such a model would remove cost barriers entirely, driving mass adoption and deepening financial inclusion.
This vision aligns with global trends in digital finance, where affordability and accessibility are critical to achieving universal inclusion. For Nigeria, it represents a bold step towards a truly digital economy.

A New Era of Trust and Innovation

Three years of seamless transactions, three Christmases without freeze, the evolution from NIP to NPS, and the reduction of transaction fees, these milestones define NIBSS’s journey under Oiwoh.
NIBSS has not only stabilised Nigeria’s payment ecosystem but also positioned the country as a continental leader in digital finance. By combining reliability, affordability, and innovation, NIBSS has transformed challenges into triumphs.
For consumers, merchants, and financial institutions, the message is clear: Nigeria’s payment systems are now robust, inclusive, and future-ready. Under  Oiwoh’s stewardship, NIBSS has delivered a new era of trust and innovation one where every transaction tells the story of progress.