Nigeria Upgrades Instant Payment System to Boost Cashless Shift

Nigeria’s payments infrastructure body has improved its quick response code payment platform, enabling instant processing and immediate fund settlement for users.

The upgrade to the Nigeria Quick Response Code (NQR) system, carried out by the Nigeria Inter-Bank Settlement System (NIBSS), now offers faster transaction completion for merchants and consumers alike. According to Techpoint Africa, the enhancements provide real-time settlement that was not previously available.

Nigeria has pursued a cashless economy policy for more than a decade, driven by efforts to reduce cash handling costs, improve transparency and expand formal financial inclusion across Africa’s most populous nation. The central bank has repeatedly encouraged digital alternatives to physical currency, especially in urban centres where mobile phone penetration is high.

The updated NQR platform supports two transaction types. Person-to-Person (P2P) payments allow individuals to transfer money directly using QR codes. Entity-to-Person (E2P) payments enable businesses, government agencies and other organisations to disburse funds to individuals.

Merchants are expected to benefit from the instant settlement feature, which removes delays between sale and receipt of funds. Consumers gain greater convenience when making payments or receiving transfers.

The NIBSS upgrade forms part of broader efforts to modernise Nigeria’s payment rails. The country already operates one of Africa’s largest instant payment schemes, but officials have continued to refine supporting infrastructure to handle growing transaction volumes.

Although the announcement was made in early 2025, the changes reflect ongoing work to meet demand for reliable, real-time digital payments in an economy where cash remains dominant in many rural and informal sectors.

Based on reporting by Techpoint Africa.