Chairman of NIBSS, Alhaji Sulaiman Barau
For instance, with the growing adoption of the cashless policy and increased patronage of mobile money, the CBN recently has put the value of transactions recorded through that platform at N40 billion monthly.
The Chairman of the Nigeria Interbank Settlement System Plc (NIBSS), Alhaji Sulaiman Barau, who is also the Deputy Governor (Operations Directorate), pointed out that the cashless policy has seen a tremendous growth since its introduction.
Barau said: “It is on record that the usage of alternative channels has increased tremendously thereby impacting on the lives of Nigerians including funds transfers ease, reducing cash related crimes, safety of lives and so on. The mobile money scheme has also recorded tremendous growth monthly transaction value of over N40 billion.
“The number of PoS terminals registered and deployed at the inception of the cashless policy in 2012 was about 5000 POS terminals. However, as at February 2016, the total number registered and deployed stands at 138,990 and at two weeks ago it was 132,000 showing that it is growing.”
To Barau, the central bank is already implementing regulations that would facilitate the achievement of the objectives of the Payment Vision 2020.
On his part, the Director, Banking and Payment System Department, CBN, Mr. Dipo Fatokun, had stressed that in line with global best practices, the CBN had decided to adopt a more collaborative approach to its regulation of the payment system in the country as well as promote self-regulation among e-payment schemes.
He said the objective of the CBN is to facilitate economic activities by providing safe and efficient mechanisms for making and receiving payment with minimum risks to the central bank, payments service providers and end users.
“We are not oblivious of international best practices and global standards and we strive continuously to ensure that the Nigerian payment system is at the forefront of payment system development.
“Having benchmarked against the principles for financial market infrastructure issued by the Committee on Payment and Settlement System (CPSS) of the bank for international settlement, we seek to bridge observable gaps through specific recommendations,” he added.
Furthermore, he pointed out that the central bank had indicated a shift in its payment system regulatory stance.
Some of these include strengthening of governance structure to reflect the significantly greater responsibility of scheme management, covering all aspects of risk, business management and operational resilience as well as the setting up of Scheme Management Board which has the responsibility to complete an annual self-assessment against the CPSS/IOSCO PFMI.
“The significance of this is that self-regulatory principle is being embraced by the Central Bank of Nigeria. This is intended to foster discipline among participants and enhance compliance level to regulations.
“It is however, in no way an abdication of the overseer role of the Central Bank of Nigeria for the national payment system.”