The Central Bank of Nigeria (CBN) has issued a directive for the commencement of the end-to-end electronic payment of salaries, pensions, suppliers and taxes in the country.
The CBN issued the directive in a circular posted on its website on Tuesday and signed by Mr Sam Okojere, Director of Payments System Management Department.
The apex bank said the directive would help to enhance the adoption of electronic payment while ensuring stability in the payment system.
The regulator said further to the implementation of the guideline, commercial banks were to dishonour payment instructions not transmitted through a bank’s approved electronic payment and collection platform.
It said that the new system meant payment instructions and associated schedules would no longer to be transmitted to banks through unsecured channels by qualifying public and private sector organisations.
The apex bank added that enforcement of the directive shall be effective from the date of the issuance of the regulation.
The objective of the end-to-end electronic payment of salaries, pensions, suppliers and taxes initiative is fully aligned with the core objectives of the National Payment System, Vision 2020 (PSV2020).
PSV2020 is 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, minimise leakages in revenue receipts and at the same time provide reliable audit trails, thereby making the Nigerian payments system align with international best practices.