The Nigeria Inter-Bank Settlement System (NIBSS) has released its maiden quarterly publication, NIBSS Digest, which explores the future of Nigeria's payment industry. The publication comes at a significant moment for the industry, as it shifts from adoption of digital payments to infrastructure, governance, and commercial interests. The digest places payments within a wider debate about economic infrastructure, regulation, competition, financial inclusion, and control of financial data. This new approach highlights the importance of secure, resilient, and interoperable infrastructure to support broader economic activity. The publication features contributions from industry experts, including NIBSS Managing Director and Chief Executive Officer, Premier Oiwoh.
The NIBSS Digest argues that the conversation around digital payments has moved beyond mere adoption, and now focuses on the underlying infrastructure. The publication's contributors examine how code, policy, and institutional governance are changing the architecture of commerce. Muhammad Sani Abdullahi's contribution, "The Future of Growth Depends on How Economies Move Value," places payment systems within the wider infrastructure required for businesses and economies to function. This approach shifts attention away from transaction activity as an end in itself, and highlights the significance of efficient payment infrastructure in allowing businesses, consumers, and markets to operate effectively.
The publication also explores the relationship between infrastructure and confidence in digital payments. Dr. Rakiya Yusuf's contribution, "Trust: The True Currency of Digital Payments," argues that confidence in digital payments depends on more than technological sophistication. Users need assurance that money will reach the intended recipient, personal information will remain secure, and the system will function reliably. The discussion of operational resilience, standardization, fraud prevention, data governance, and market structure gives substance to the idea of trust. This highlights the importance of a robust infrastructure to support digital payments.
Abubakar Suleiman's contribution, "The Sovereign Payment Stack: Recalibrating Nigeria's Financial Infrastructure," takes a more policy-oriented approach. The Sterling Bank chief executive argues that payment infrastructure should be treated as strategic national infrastructure and advocates for greater domestic ownership of switching, data centers, and routing capabilities. He connects this proposition to national security, financial inclusion, productivity, and tax efficiency. This raises questions about the economics of infrastructure ownership and the implications for resilience, regulatory access, and national security.
The publication also explores the National Payment Stack (NPS), which is part of Nigeria's evolving payments architecture. The broader issue is not simply whether Nigeria can build more payment infrastructure, but how that infrastructure should be organized and what economic outcomes it should produce. The NPS has implications for the cost of maintaining payment infrastructure and the debate around free low-value payments. This highlights the need for a well-designed payment infrastructure to support economic growth.
The NIBSS Digest also looks at cross-border payment issues, with Clara B. Arthur of Ghana Interbank Payment and Settlement Systems (GhIPSS) arguing for connecting national payment infrastructures. This would enable businesses engaged in regional trade to make payments across jurisdictions with less friction. The discussion highlights the need for settlement arrangements, regulatory coordination, shared standards, cybersecurity, fraud management, and governance across jurisdictions. This is a significant challenge for African commerce, and the publication provides a practical dimension to the discussion.
The publication also emphasizes the importance of financial inclusion as an issue of system design rather than simply access. Solape Akinpelu argues that having an account is not enough if financial systems are not designed to meet the needs of all users, particularly women. The digest highlights the need for financial systems to be designed with inclusive growth in mind, and for Africa to build financial systems that work for all users. This approach recognizes that financial inclusion is a critical aspect of economic development.
Key points
- The NIBSS Digest explores the future of Nigeria's payment industry, shifting the conversation from adoption to infrastructure, governance, and commercial interests.
- The publication highlights the importance of secure, resilient, and interoperable infrastructure to support broader economic activity.
- The digest emphasizes the need for financial systems to be designed with inclusive growth in mind, and for Africa to build financial systems that work for all users.
