The Central bank of Nigeria (CBN) has unveiled its regulation on electronic payments and collections for public and private sectors in Nigeria, which it said is expected to help reduce the time and cost of transactions and minimise leakages in revenue.
In addition, the central bank explained that the objective of the regulation was to fully align with the core objectives of the National Payments System Vision 2020 (PSV2020) to ensure the availability of safe, effective and efficient mechanisms for conveniently making and receiving all types of payments from any location and at any time, through multiple electronic channels.
This revised 2019 regulation on electronic payments and collections for public and private sectors in Nigeria was posted on the regulator’s website yesterday.
It reiterated it directive that banks in the country should dishonour instructions from public and private sector on salaries, pensions, suppliers and taxes not transmitted on a CBN-approved electronic payment and collection platform.
“Further to the implementation of the Guideline on end- to-end electronic payment of salaries, pensions, suppliers and taxes by all public and private sector organisations as directed in the CBN Guidelines referenced [CBN/BPS/PSV/GEN/014/05], deposit money banks are to dishonor payment instructions for all forms of salaries, pensions, suppliers and taxes not transmitted on a CBN approved straight through electronic payment and collection platform issued by organisations with more than 20 employees.
“This means payment instructions and associated schedules are no longer to be transmitted to DMBs through unsecured channels, such as paper-based mandates, flash drives, compact discs (CDs), email attachments, etc. by qualifying public and private sector organisations,” it added.
In the area of infractions and penalties, the CBN stated that providing e-payment system solution or services without obtaining a license from the CBN would cause the regulator not to issue license to operators for a minimum of one-year from the date the infraction was detected.