The Nigeria Inter-Bank Settlement System (NIBSS) has announced a significant upgrade to its Nigeria Quick Response (NQR) payment system, enhancing transaction speed, security, and overall efficiency. These improvements aim to make digital payments more seamless for businesses and individuals while supporting Nigeria’s transition to a cashless economy.
Speaking on the improved system, Premier Oiwoh, Managing Director and CEO of NIBSS, highlighted the unique capabilities 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.
The latest upgrades address previous inefficiencies and introduce several innovative features:
- Instant Transaction Reversals: Failed payments are now automatically refunded, eliminating frustrating delays for users.
- Single Session ID: Transactions will now maintain a consistent session ID from start to finish, simplifying reconciliation and reducing discrepancies.
- Improved Speed: By reducing the number of calls between banks and NIBSS Instant Payment (NIP), transaction latency has been significantly lowered.
- Enhanced Security: A stronger authentication framework has been implemented to prevent fraud.
- Simplified Fee Processing: Adjustments have been made to streamline fee processing, improving the merchant experience.
Additionally, the upgraded system now supports both Person-to-Person (P2P) and Entity-to-Person (E2P) payments, expanding its applications. “Beyond the P2P, there is also E2P on the MQR, and most of the bank apps have it today,” Oiwoh explained.
Another major feature is the ability for individuals to share personal QR codes instead of account numbers for payments. “You can also send your personal QR code to anybody to pay you rather than send an account number,” Oiwoh added.
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 stated.
As part of the upgrade, a new pricing structure for NQR payments will take effect from March 1, 2025, further promoting cost-effective digital transactions.
The adoption of NQR payments has been gaining traction, particularly in the public sector. Oiwoh revealed that the Lagos State Government has generated over 750,000 QR codes for payments related to essential services such as water bills and land duties. This innovation allows residents to conveniently settle their bills by 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 observed that QR-based offerings tend to be significantly 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.
With these upgrades, customers can expect faster, more secure, and more convenient digital transactions. Instant reversals of failed payments will eliminate previous frustrations, while businesses will benefit from real-time payment notifications and improved reconciliation tools.
The introduction of dynamic QR codes will enhance security by generating unique transaction identifiers for each payment, reducing errors. Additionally, merchants will be able to offer personalized promotions through “payment playlists,” increasing customer engagement.
The upgraded NQR system sets the stage for a more reliable and efficient digital payment landscape across Nigeria, reinforcing the country’s push towards financial inclusion and cashless transactions.
