The Nigeria Inter-Bank Settlement System (NIBSS) upgrades the Nigeria Quick Response (NQR) payment system, introducing new features to improve transaction speed, security, and accessibility for businesses and individuals across the country.
Speaking on the latest improvements, Premier Oiwoh, MD/CEO of NIBSS, highlights how the upgraded system ensures instant settlements and greater efficiency for users.
“This is the only QR system globally that guarantees immediate credit to the beneficiary,” Oiwoh states.
He explains that the system now supports both Person-to-Person (P2P) and Entity-to-Person (E2P) payments, expanding its usability beyond individual transactions to business-related payments.
“Beyond P2P transactions, the system now integrates E2P payments, which many banking apps already support. My vision is for even street vendors to present their QR codes—perhaps as ID cards—to receive payments seamlessly. Cash is not always accessible, but digital payments can bridge that gap,” he adds.
Oiwoh also introduces a personalized QR code feature, allowing users to send their QR codes for direct payments instead of sharing account numbers.
A new pricing model for NQR transactions takes effect from March 1, 2025.
How the NQR Payment System Works
Launched in March 2021, NQR is designed to accelerate Nigeria’s transition to a cashless economy. The system enables users to make payments by scanning a QR code, which directs them to their bank or mobile wallet to complete the transaction.
By reducing reliance on cash, NQR aligns with the Central Bank of Nigeria’s (CBN) financial inclusion strategy, making digital transactions more accessible nationwide.
Key Features in the Upgraded System
The latest improvements address previous inefficiencies and introduce new functionalities to enhance the overall user experience.
- Instant Reversals – Failed transactions now trigger immediate refunds, eliminating delays.
- Improved Reconciliation – A single session ID tracks transactions from initiation to completion, reducing errors and simplifying record-keeping.
- Faster Processing – The system reduces the number of interactions between banks and NIBSS Instant Payment (NIP), ensuring quicker settlements with lower latency.
- Enhanced Security – Strengthened authentication and fraud prevention measures provide better protection against unauthorized transactions.
- Simplified Fee Structure – The new model integrates transaction fees into the prepayment process, removing the need for separate fee assessments and improving the merchant experience.
Lagos State Adopts NQR for Public Services
The Lagos State Government actively adopts the NQR payment system for public service payments.
According to Oiwoh, the state generates over 750,000 QR codes for payments related to water bills, land duties, and other essential services.
“You receive your bill—whether for water or land duty—and simply scan the QR code to make payment from the comfort of your home, without visiting a bank or using a mobile app,” he explains.
He also notes that churches and religious institutions benefit from the system, as digital transactions enhance transparency and convenience.
“When people scan a QR code in church for offerings, the amounts tend to be higher compared to cash donations. Digital transactions make giving easier and more seamless,” Oiwoh remarks.
Impact on Businesses and Consumers
The NQR upgrade ensures faster, more secure, and more efficient digital transactions for both businesses and consumers.
- For customers: Payments process seamlessly with instant reversals in case of failures. Whether shopping in stores, paying bills, or using transportation services, users experience a smoother checkout process.
- For merchants: Real-time payment notifications and improved reconciliation tools reduce disputes and enhance transaction tracking. The system also introduces dynamic QR codes, which generate unique transaction identifiers to prevent errors.
- For financial institutions: A unified framework ensures consistency across all banks, offering a reliable and standardized digital payment experience.
With these enhancements, NQR plays a key role in Nigeria’s evolving digital economy, driving financial inclusion and cashless adoption across all sectors.
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