CBN reviews directive on payment of salaries, pension, taxes

… payment instructions must be transmitted through secured channels

By Chioma Obinagwam

In line with the Central Bank of Nigeria’s (CBN’s) resolve to enhance the adoption of electronic payment, it has issued a directive for the commencement of the end-to-end electronic payment of salaries, pensions, suppliers and taxes in the country.

The CBN disclosed this in a circular signed by Mr. Sam Okojere, Director of Payments System Management Department on it’s website.

The CBN, which is also the apex bank, said the directive would help to enhance the adoption of electronic payment while ensuring stability in the payment system.

The apex bank said further to the implementation of the guideline, commercial banks were to dishonor payment instructions not transmitted through a bank’s approved electronic payment and collection platform.

The apex bank added that enforcement of the directive shall be effective from the date of the issuance of the regulation.

The objective of the end-to-end electronic payment of salaries, pensions, suppliers and taxes initiative is fully aligned with the core objectives of the National Payment System, Vision 2020 (PSV2020).

PSV2020 seeks 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.

It also seeks to reduce the time and costs of transactions, minimise leakages in revenue receipts and at the same time provide reliable audit trails, thereby making the Nigerian payments system align with international best practices.