The Central Bank of Nigeria (CBN) on Tuesday, released regulation for electronic payments and collections for public and private sectors of the economy.
The regulation is a revision of the Guidelines on Electronic Payment of Salaries, Pensions, Suppliers and Taxes in Nigeria (2014).
The CBN, in the regulation, introduced a penalty of N2million for Deposit Money Banks (DMBs) on third party e-payment solution not approved by it on every repeated occurrence.
It also introduced penalty of N1million for Other Financial Institutions (OFIs) on third party e-payment solution not endorsed by the apex bank.
The CBN also introduced fines for other forms of infractions.
It said in the regulation posted on its website that it was 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.
“It 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 ensuring that the Nigerian Payments System aligns with international best practices,” it said.
The CBN noted that the regulation was set out to provide all stakeholders with the operational procedures that guide end-to-end electronic payment for the public and private Sector.
It explained that the guideline applies to all CBN regulated entities operating in Nigeria and therefore mandated its adoption, implementation and compliance with the directives on end-to-end electronic payments of all forms of salaries, pensions & other remittances, suppliers, revenue collections.
The bank also said that it was not limited to taxes and levies, among others.