Nigeria’s financial landscape is undergoing a major transformation as the Central Bank of Nigeria (CBN) leads the migration from the long-standing ISO 8583 payment messaging format—introduced globally in 1987—to the modern ISO 20022 standard, marking a significant milestone in the country’s digital payment evolution.
The transition, which officially commenced this month, represents one of the most important technological upgrades in Nigeria’s banking and fintech ecosystem. It is expected to enhance interoperability, efficiency, and innovation across the financial services sector, positioning Africa’s largest economy in line with global best practices.
According to industry experts, the move signifies the CBN’s commitment to modernizing the country’s financial infrastructure and ensuring seamless connectivity among banks, payment processors, and fintech innovators.
Speaking at Moonshot by TechCabal in Lagos, Akeem Lawal, Managing Director for Payment Processing & Switching (Purepay) at Interswitch, described the transition as “long overdue.”
“Recently, the Central Bank announced the migration from ISO 8583. It was built in 1987—let that sink in. The technology standard on which we’ve been building payments for the last 20 years was built in 1987. It’s time to modernize that,” Lawal said.
He emphasized that ISO 20022 would create the foundation for a more robust, secure, and inclusive digital economy, capable of supporting both card-based and non-card payment systems.
“The new standard creates a modernized platform that allows us to build digital economies. We have put that infrastructure in place,” he added.
The ISO 20022 framework offers a richer data format and a more flexible structure for payment transactions, enabling faster settlement times, improved compliance, and better fraud detection. The adoption aligns Nigeria’s financial system with advanced economies already leveraging the standard, including the European Union, the United Kingdom, and Singapore.
As the migration gains momentum, stakeholders anticipate that it will unlock new innovations, foster cross-border payment efficiency, and enhance financial inclusion across the country—setting Nigeria on a strong path toward becoming a regional payment hub in Africa.
Nigeria’s Central Bank begins migration from the 1987 ISO 8583 payment standard to the modern ISO 20022 format — a move set to modernize digital payments, enhance interoperability, and drive innovation across the nation’s financial system.
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