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CBN moves to deepen e-Payment system

By on February 3, 2015

The Central Bank of Nigeria (CBN) has inaugurated the payment system strategy board, the payment scheme boards, the initiatives working groups and the special interest working groups.

The move is part of efforts by the banking sector regulator to enhance the Payment System Vision 2020 (PSV2020), which aims to make the Nigerian payment system nationally utilised and internationally recognised,

The CBN Governor, Mr. Godwin Emefiele, who inaugurated members of the respective groups in Lagos at the weekend, described the feat as another giant leap in realising the vision of facilitating economic activities.

He said it is expected to provide safe and efficient mechanisms for making and receiving payments with minimum risks to the central bank, payment service providers and end users.

The PSV2020 initiatives are intended to benchmark the existing core payments infrastructures in Nigeria against international best practices.

Emefiele explained that members of the groups were selected to serve in any of the new initiative working groups, such that one member from each industry vertical, comprising of the user community, banks and other service providers. “The groups will work on the principle of identifying quick wins for an initial period of two years, with an option to extend for another two-year term, subject to the level of achievements.

“These groups have laid the foundation for moving to the next level of scheme governance, which is a significant shift of responsibility from CBN to the participants in the Nigerian payments system. This no doubt will enhance self-regulation and engender the efficiency of the payments system,” he said.

He pointed out that the having put in place the aforementioned initiatives working groups and the governance scheme boards, best practice recommends that, there should be a senior and superior body that oversees all payment systems activities.
“It is in this respect, and to provide strategic direction for the National Payments System, that the Payment Systems Strategy Board (PSSB) is being put in place.

“This body will replace the National Payment Systems Council (NPSC), and will be the pinnacle organisation for the governance, management and operation of the Nigerian Payment Systems,” he added.

The terms of reference includes to provide strategic direction and drive the overall National Payments System Strategy, to provide cross-scheme priorities and resource allocation, among others.
The Board, which shall be chaired by the Governor of the CBN would have the Minister of Communication Technology; the Accountant General of the Federation; the four Deputy Governors of the CBN; the Chairmen of the four Payment Scheme Boards; independent Directors from the end-user community represented by the director generals, NACCIMA and Consumers Protection Council; the Director Generals of the Securities and Exchange Commission (SEC) and the National Identity Management Commission (NIMC).

Others include the chairmen of two sub-committees of the Bankers’ Committee (Payments Infrastructures and Financial Literacy subcommittees); the Executive Chairmen of the Nigerian Communication Commission and Federal Inland Revenue Service;      the Permanent Secretary of the Ministry of Justice.

Emefiele further stressed that the selection and appointment into the various boards and initiative working group was done after extensive consideration of the importance and role played by the individuals or the organisations they represent.

 

[ThisDay]