NIBSS Instant Payments – A new payment scheme, NIBSS Instant Payments (NIP), was launched in 2011. NIP enables real-time inter-bank account-to-account electronic fund transfers. All major banks in Nigeria · support this scheme, resulting in an impressive uptake by consumers Mobile Money – Following the development and release of a Mobile Payments Rules and Regulation framework, 26 mobile payments schemes have been licensed by CBN. The volume of mobile payments has grown rapidly since 2011 reflecting the natural appeal of mobile as a payment method. Nigeria has adopted a ‘bank-led’ model for mobile payments, thereby ensuring the financial resilience of all schemes and creating an open market to encourage innovation and competition.
Infrastructure enhancements · CSD for Government Securities – In August 2013, CBN successfully completed an ambitious project to deploy a new Real-Time Gross Settlement (RTGS) payments system plus a new Central Securities Depository (CSD) for Government debt instruments. A robust RTGS payment system underpins a sound Financial Markets Industry, and the inclusion of the CSD functionality supports greater flexibility in · Collateral Management for the payment systems EMV Cards – The Nigeria cards infrastructure successfully migrated to EMV Cards (Chip and PIN) to · significantly improve the security of plastic cards NUBAN – Astandardised bank account structure – Nigeria Uniform Bank Account Number (NUBAN) – has been implemented to improve the quality of payment validation and automation. Arrangements to extend the · NUBAN to non-bank financial institutions are nearly concluded Clearing Cycle Reduction – The Cheque Clearing Cycles were harmonized across the country, and clearing · cycles for ACH payments and cheques has been reduced from 3 days(T+2) to next day (T+1) Centralised Clearing – The Clearing centre infrastructure has been rationalized, reducing seven automated and thirty manual clearing centres to one national automated clearing centre that handles all ACH and cheque · payments. Nigeria Central Switch – NCS has become operational enabling interconnectivity and interoperability among deposit-taking institutions and licensed payment service providers. The NCS also facilitates inter- · scheme card and mobile payments. Payments Terminal Service Aggregation – this model has been put in place to facilitate seamless and interoperable card payments, clear regulatory visibility for the retail payment infrastructure, and reliable · industry retail payment system statistics for analysis and planning purses. Cheque Truncation – Cheque truncation has been introduced to dematerialise the physical cheque and hence · processing purely on the basis of secure electronic images Cheque amount cap – Acheque cap of N10 million was introduced to encourage higher value payments to be · made electronically. Mandate Processing for Direct Debits – A centralised Direct Debit Mandate Processing infrastructure has been created to streamline the administration of the mandate process, and banks have been required to · improve the validation of payment requests against the lodged mandates. Credit Bureaux – Three separate but interlinked credit bureaux have been launched, providing the first steps in creating a database of credit history which is essential as the financial community offer new banking · products ATM and POS Deployment – Under direction from CBN, banks and other financial service providers have been required or encouraged to increase the deployment of ATM and POS devices.
Discouraging the use of Cash The CBN adopted the following initiatives to reduce the cash intensity in the economy, encourage electronic · payments and enhance the Nigerian Payments System: Limit on Cash Deposits – Fixed a daily cumulative limit of N500,000 and N3,000,000 on free cash withdrawals and lodgements by individual and corporate customers of banks respectively, effective April 1, 2012, in Lagos. Individuals that make cash transactions above the aforementioned limits shall be charged a service fee of 2% and 3% on deposits and withdrawals respectively while the service charge for corporates are · 3% and 5% on deposits and withdrawals respectively. Limit on Cheque Encashment – Disallowed encashment of third party cheques above N150,000 over the · counter. Value for such cheques shall be received through the clearing house. Cash Lodgement restricted -Directed that Cash-in-transit lodgements services rendered to merchantcustomers by banks shall cease. However, customers could engage the services of CBN licensed CIT · companies to aid cash movement to and from their banks at mutually agreed terms and conditions. Public Awareness – Massive enlightenment campaign to increase adoption of electronic payments by the banking public’ 3.2.5 Momentum from Federal and State bodies · Government e-Payments – The drive to electronic payments was given a huge boost with the 2009 Presidential mandate that all payments from Federal Government entities must be made electronically. Work continues on the full automation of these flows, but this mandate was a key driver to the growth in electronic payments since 2007. ‘· Cashless Lagos’ – In 2012, a pilot scheme, ‘Cashless Lagos’, drove a significant ramp-up in the deployment of Point-of-Sale (POS) terminals. The program is now formally extended to five further states and Abuja FCT, increasing the availability of POS devices 3.2.6 Guidelines and Framework documents CBN embarked on an extensive update of all payment systems Rules and Regulations to ensure that they reflect the desired state for the respective system. The most significant guidelines to be revised or issued for · the first time include: · Mobile Payment Regulatory Framework · Guidelines on Transaction Switching Services ·
Guidelines on Stored Value/Prepaid Cards · Direct Debit Rules · Guidelines on ATM Operations · Operational Rules and Regulations of the Nigeria Central Switch · Revised Nigeria Bankers Clearing House Rules · Guidelines for Cheque Truncation Guidelines for Point of Sales (POS) Card Acceptance Services Most other CBN Rules and Guidelines have been updated and published on the CBN web-site.