Posted on February 17, 2022 15:29

Nigeria Inter-Bank Settlement Systems PLC (NIBSS) launched Nigeria's Quick Response (NQR) code payment system on March 16, 2021.

  1. What is the NQR Code?
  • NQR code is a payment innovation aimed at unifying the QR code experience for financial services users in Nigeria. It is based on"EMV® QR Code Specification". NQR is going to be a consolidation of the fragmented "Pay by QR" method each payment service provider offered its merchant. Yet, it will retain the swiftness, seamlessness and contactless ability of QR codes.

As a payment method, each QR code contains a unique information relating to the transaction being performed. So, when it is scanned via an eligible app it reveals the information. In this case, the eligible app is the customer's banking app

NIBSS—founded in 1993—is focused on innovating for the financial services industry while facilitating interoperability. Ten years ago, NIBSS introduced an account-number based, online-real-time Inter-Bank payment solution called NIBSS Instant Payment (NIP). The launch of NQR will build on the progress of NIP and further deepen its mission.


QR codes are an alternative payment method to PoS and Bank Transfer. The NQR will unify QR codes in the country for a more consistent user experience.

Financial Institutions involved in payments and collections can integrate the NQR network by following the onboarding process as prescribed on NIBBS's site. The NQR integration kit contains: Admin Consoles, Issuing and Acquiring APIs, Merchant and Sub Merchant App and USSD.


NQR is in line with the CBN’s QR code payment regulation

Earlier in the year, the Central Bank of Nigeria (CBN) released the framework for Quick Response (QR) code payments in Nigeria. The frame work was a means the CBN utilized to regulate the payment option and make its adoption seamless.

The framework highlighted the acceptable standards for implementing QR payments, its interoperability, roles and responsibility of QR payments participants, and risk management principles for QR code payment in Nigeria

The CBN framework categorized the QR code payment specifications into four:

  • QR Code Payments in Nigeria shall be based on EMV® (Europay, Mastercard and Visa) QR Code Specification for Payment Systems.
  • CBN can also approve the implementation of any other QR Code Standard, as long as it meets its security requirements, demonstrates interoperability and is affordable to end users (merchants and customers).
  • All QR Code Payments implementation in Nigeria is mandated to support account, wallet, card and token based QR Code Operations.
  • The implementation of QR Code for payments in Nigeria will be based on the Merchant-presented mode specification. In this scenario, merchants will present the QR Code for buyers to accept in order to conclude payment transactions.

The framework grouped the participants—anyone who opts to use the QR code payment systems, into five. It stated that all participants will be guided by existing CBN guidelines on electronic payments channels in Nigeria. The participants include:

  • Merchants—anyone who sells goods or services to customers.
  • Customers—consumers who pay for goods and services.
  • Issuers—Banks, Mobile Money services and other Financial Institutions.
  • Acquirers—Banks, Mobile Money services and other Financial Institutions that help merchants receive their payments.
  • Payments Service Providers(Switches & PSPs)—institutions that facilitate seamless payment systems.

The framework also mandates that all consumer complaints related to QR Code Payment be resolved in accordance with the CBN Consumer Protection Regulation.

  1. How does the NQR Code Work?
  • Merchants on the NQR platform display QR Codes generated to receive payments from payers at their locations. Payers/customers select the QR option on Cofred Mobile app and scan the displayed QR Code to make payment to the merchant. Merchants and Payers get instant notification of payment made.
  1. Who can use the NQR Code?
  • Merchants/business owners (big or small) can use the NQR Code to receive payments from individuals and get instant value in their bank account.
  1. What are the benefits of the NQR Code?
  • NQR provides many advantages over existing e-payment solutions to both merchants and payers. These include:

    * Instant value to merchants for all transactions.

    * Zero cost of onboarding, infrastructure and otherwise, to the merchant.

    * Instant notifications to both merchants and payers of payment made.

    * Lower transaction fees across the various price bands

    * A reconciliation and reporting portal for merchants.

  1. How do I sign-up for the NQR Code as a Merchant?
  • . Merchants need to complete the sign-up form from their service provider
  1. How do I sign-up for the NQR Code as a Payer/Customer?
  • Payers can access the NQR Code with Cofred Mobile app . Not registered on Cofred Mobile app? Simply visit the play store on your mobile phone to download and register.
  1. What do I do if I have a failed transaction?


Payment with the use of QR Codes in Nigeria is gradually becoming the preferred choice for business in Nigeria as it is an affordable alternative to utilizing POS solutions. The issuance of the Framework is a positive step to encourage innovation in financial services and promote the secured use of QR Codes in Nigeria.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances

Posted on February 17, 2022 15:29