The Nigeria Inter-Bank Settlement System (NIBSS) has upgraded its Nigeria Quick Response (NQR) payment system, improving transaction speed, security, and overall efficiency.
The enhancements aim to make digital payments more seamless for businesses and individuals while supporting Nigeria’s drive towards a cashless economy.
Speaking on the improved system, Premier Oiwoh, managing director and CEO of NIBSS, noted the unique properties of NQR, particularly its ability to process payments instantly. “This account is the only QR in the world that is instant for the beneficiary,” he stated.
Key Improvements
The latest architectural updates address various challenges that previously affected the system’s efficiency.
An interesting upgrade includes instant transaction reversals, ensuring that failed payments are immediately refunded without the delays that users previously experienced.
Again, a single session ID will now be maintained from the beginning to the end of a transaction, simplifying reconciliation and reducing discrepancies in payment references.
Speed has also been improved by minimising the number of calls between banks and NIBSS Instant Payment (NIP), thereby lowering transaction latency. Security has been strengthened with an enhanced authentication framework designed to prevent fraud, and the fee processing system has been simplified to enhance the merchant experience.
Oiwoh also noted that the system now supports both Person-to-Person (P2P) and Entity-to-Person (E2P) payments, significantly increasing its use cases. “Beyond the P2P, there is also E2P on the MQR, and most of the bank apps have it today,” he explained.
Another interesting feature of the NQR upgrade is the ability for individuals to send their personal QR codes to others for payment instead of sharing account numbers. “You can also send your personal QR code to anybody to pay you rather than send an account number,” Oiwoh said.
The improved system is expected to benefit businesses of all sizes. Oiwoh shared his vision for widespread adoption, including street vendors using QR codes embedded in ID cards to receive payments. “My dream is to have hawkers on the streets being able to present their QR in the form of an ID card and then make payment. Cash cannot be everywhere, what we are all looking for is payment,” he added.
As part of the upgrade, a new pricing structure for NQR payments will take effect from 1st March 2025. This change is expected to make digital transactions even more cost-effective for users.
Lagos State Embraces NQR Payments
The adoption of NQR payments has been growing, particularly within the public sector. Oiwoh revealed that the Lagos State Government has generated over 750,000 QR codes for payments related to essential services, including water bills and land duties. This system enables residents to settle their bills by simply scanning a QR code from their homes, eliminating the need for bank visits.
“You will receive your bill—whether for water or land duty—and simply scan to pay from the comfort of your house. Just yesterday, a Lagos State Commissioner reached out, requesting the same solution. The demand is growing because it’s all about convenience,” Oiwoh noted.
Beyond government services, religious institutions are also leveraging NQR for digital donations. Oiwoh pointed out that QR-based offerings tend to be higher than cash donations. “If you go to some churches today, you scan and make payments. When people are making offerings, it is easy for you to dip your hand in your pocket and bring out N20. One thing I have noticed is that when people scan the QR code in the church, on rare cases it’s nothing less than N5,000,” he said.
What This Means for Users
With these upgrades, customers can expect faster, more secure, and more convenient digital transactions. Failed payments will now be instantly reversed, eliminating previous frustrations. Businesses will also benefit from real-time payment notifications and improved reconciliation tools, making it easier to manage sales and reduce disputes.
The introduction of dynamic QR codes will further enhance security by generating unique transaction identifiers for each payment, reducing errors. Additionally, merchants will be able to offer personalised promotions through “payment playlists,” boosting customer engagement.
With the new NQR framework, Nigerians can look forward to a more consistent and reliable digital payment process across different financial platforms.
