The Central Bank of Nigeria (CBN) has cautioned banks and other electronic payment service providers in the country to navigate to the evolving and increasing complex regulatory environment to avoid penalty.
The caution was given by the Director, Banking and Payments System Department, CBN, Mr. ‘Dipo Fatokun, in a statement made available to The Punch.
Fatokun made this known at the Finance Correspondents Association of Nigeria Bi-Monthly Forum in Lagos on Saturday, while making a presentation.
In the statement, he described fraud as the biggest challenge facing the electronic payment sector, stressing the need for banks, customers and regulators to tackle it.
“Electronic payments continue to be a growth story across the world and Nigeria is not an exception, but banks and other service providers face a number of challenges in ensuring that they make the most of this opportunity,” he said.
He said the Nigerian electronic payments industry had been evolving in line with the evolution in global payments in both wholesale and retail systems.
Fatokun said banks, payment service providers, and the CBN had played various roles in developing the payments system and creating products and channels for electronic payments.
“The ATM channel accounts for the highest volume of transactions, while the NIP accounts for the highest value of transactions annually. This is because the ATM is usually the e-payment channel that new and lower value account holders always interface with, while corporates and upwardly mobile middle class customers make transfers using NIP,” he said.
He said the Retail Payments Transformation Programme of the CBN had led to the introduction of various electronic payment products and services by operators in the industry.
“The electronic products are gradually reducing the usage of cheques and cash, as noticed consistently in the annual performance report since the inception of the Cashless Policy in 2012,” he said.