The Central Bank of Nigeria (CBN) has introduced a framework on the end-to-end electronic payment of salaries, pensions, suppliers and taxes in the country.
The central bank, said the objective of the guidelines fully align with the core objectives of the National Payment Systems Vision 2020 (NPSV), which is to ensure the availability of safe and effective mechanisms for conveniently making and receiving all types of payment from any location and at any time, through multiple channels.
It further stated that the policy would reduce the time and cost of transactions, minimise leakages in government revenue receipts and at the same time provide reliable audit trails, thereby making the Nigerian payment system comply with global payment standards.
It stated that the guidelines applies to all public and private sector organisations and 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, suppliers and taxes, in line with the timelines prescribed by the Bank.
“All public and private sector organisations who maintain relationship with employees, pensioners, suppliers and taxpayers and other entities are considered as relevant stakeholders and are required to work together for the success of the end-to-end electronic payment initiative,” it stated.
It advised paying organisations to maintain e-payment enabled account with deposit money banks or other financial institutions; adopt a bank approved end-to-end electronic payment platform for all forms of salaries; pensions, suppliers and taxes payment; provide basic infrastructure for making and receiving electronic payments; and ensure employees are given basic training to use adopted platform amongst others.
For payment beneficiaries such as employees of organizations, the central bank recommended that they maintain e-payment enabled bank accounts with deposit money banks, other financial institutions or any other approved channel for receiving payments such as mobile money/electronic wallet, subject to the its approved KYC (Know Your Customers)limits. The CBN also recommended that banks should provide correct account and contact details to the paying organisation, and report cases of non-payment, delayed payment or wrong payment of salaries carried out on a Bank approved e-payment platform to the paying organisation, amongst others.
On the other hand, it also stated that all pensioners should maintain e-payment enabled bank account with deposit money banks, other financial institutions or any other channel for receiving payments, such as mobile money/electronic wallet, approved by the Bank.