By Mustapha Hodi
The Central Bank of Nigeria (CBN) on Tuesday, September 10, 2019, released the Regulation on Electronic Payments and Collections for Public and Private Sectors in Nigeria.
Financescape reports that the apex bank has issued the Regulation in the exercise of its powers under the CBN Act, 2007.
The 16-page Regulation is a revision of the Guidelines on Electronic Payment of Salaries, Pensions, Suppliers and Taxes in Nigeria (2014), which is intended to guide the end-to-end electronic payment of salaries, pensions and other remittances, suppliers and revenue collections in Nigeria.
The objective of the Regulation is 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 will reduce the time and costs of transactions, minimize leakages in revenue receipts and at the same time provide reliable audit trails, thereby ensuring that the Nigerian Payments System aligns with international best practices.
The Regulation is therefore set out to provide all stakeholders with the operational procedures that guide end-to-end electronic payment for the Public and Private Sector.
The Regulation applies to all CBN regulated entities operating in Nigeria and mandates adoption, implementation, and compliance with the directives on end-to-end electronic payments of all forms of salaries, pensions & other remittances, suppliers, revenue collections including but not limited to taxes, levies, penalties, recoveries, assessments, and the disbursement of funds for social programs payments bills, honorarium, scholarships, allowances, etc. herein referred to collectively as ‘payments and collections.