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CBN Committed to driving Nigerian payment system growth

22 June, 2008 02:00:00 Ben Uzor Jr
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Central Bank of Nigeria has reiterated its commitment towards ensuring the effective implementation of the payments system 2020 through strategic developmental efforts geared towards achieving an efficient, safe and reliable system.

Speaking at the CardExpo 2008 conference held in Lagos recently, James Olekah, director of Banking Operations, Central Bank of Nigeria, said: "The CBN is aware of the enormous requirement for the effective implementation of the payment system vision and is committed to delivering on the strategy. A significant change in the management of the national payments system is the shift in CBN’s approach to payments system development."

Olekah stated that multiplicity of payment infrastructure, lack of interoperable payment networks, settlement failures, increasing prevalence of cash, among others, where some of the factors hindering the attainment of the payment system vision.

His word: "We are all aware of the Payment System 2020 which stated our vision of facilitating economic activities by providing safe and efficient mechanisms for making and receiving payments with minimum risks to the Central bank, payment service providers and end users; extending the availability and usage to all sectors and geographies; and conforming to internationally accepted regulatory, technical and operational standards."

Commenting on the Central Bank’s role in the development of the country’s payment system, he said that regulation was critical to the development of the payment system as over time, the process had been driven by the private sector.

He noted that Guidelines on Transaction Switching and Card Issuance, Stored Value and Prepaid Cards, Automated Clearing House (ACH) Transactions as well as the banking Code of Conduct for Direct Debit Schemes were almost near completion.

Also, he said that the regulatory Framework for Person to person (mobile) Payments and a Nigeria Central Switch were in the final stages of completion.

In his words: "The impact of technology has also necessitated the need for new laws and also compelled central banks to regularly monitor the impact of changes in payments system on issues such as money laundering, customer due diligence requirement, monetary policy formulation and implementation".

Comments (1 posted):

Sam Pam on 22 June, 2008 11:10:36
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This is the one government agency that seems to know what it's doing-the CBN. Giving it full independence will go a long way in doing Nigeria a lot of good.

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