Nigeria: CBN Amends Guidelines on Electronic Money Transaction

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The Central Bank of Nigeria (CBN) on Tuesday amended its guidelines on electronic money transactions specifically with regards to transaction switching between banks.

In a circular to all banks, mobile money operators and payments services providers Tuesday, the apex bank’s Director of Banking and Payments System Department, Mr Dipo Fatokun, said the amendment was necessary in order to strengthen the nation’s electronic payments system.

He explained that in arriving at the decision to amend the guidelines, CBN took cognisance of the need for a competitive environment, while promoting shared services and innovation.

He stated:” The bank, in ensuring that the Guidelines on Transaction Switching Services in Nigeria support the objective for payments efficiency and financial inclusion, hereby effects the following changes. Section 2.6.3 of the Guidelines which stipulates that “Nigeria Central Switch (NCS) shall not own or promote any card business or retail products and shall be run in accordance with international best practice is hereby amended to read as follows:

“The NCS shall be run in accordance with international best practice.To this end, the Nigeria Inter-Bank Settlement System (NIBSS) Plc shall communicate the Application Programming Interface (API) and other specifications of all its products to all banks and other licensed operators, including switches, mobile money operators and payments services providers, immediately.”

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