By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-The central bank of Nigeria (CBN) Tuesday unveiled approved guidelines on the end-to-end electronic payment of salaries, pensions, suppliers and taxes in Nigeria.
The CBN said the released guidelines on the e-payment of salaries, pensions, suppliers and taxes in Nigeria is in exercise of its powers, as provided in the CBN Act, 2007, Section 47, sub section 2(2d).
According to Nigeria’s central bank, the guidelines are set out to provide all stakeholders with the operational procedures and regulations that guide end-to-end electronic payment of all forms of salaries, pensions, suppliers and taxes in Nigeria.
The CBN says the guidelines applies to all public and private sector organisations and entities operating in Nigeria and mandates adoption, implementation and compliance with the directives on end-to-end electronic payments of all forms of salaries, pensions, suppliers and taxes, in line with the timelines prescribed by the Bank.
Nigeria’s central bank affirmed that 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 systems vision 2020 (NPSV 202), which is to ensure the availability of safe and effective mechanisms for conveniently making and receiving all types of payments from any location and at any time, through multiple channels.
The CBN further affirmed that the e-payment system will reduce the time and costs of transactions, minimise leakages in government revenue receipts and at the same time provide reliable audit trails, thereby making the Nigerian payments system comply with global payment standards.
‘’Further to the national sensitisation and engagements with diverse stakeholders, all public and private sector organisations are to commence implementation of end-to-end electronic payment of all forms of salaries, pensions, suppliers and taxes on January 9, 2012 as contained in CBN circular BPS/DIR/GEN/CIR/01/015,’’ the CBN said.
According to the Nigeria’ central bank, all banks are to dishonour payment instructions for all forms of salaries, pensions, suppliers and taxes payment not transmitted on a bank approved straight through electronic payment and collection platform issued by organisations with more than 50 employees.
‘’This means payment instructions and associated schedules are no longer to be transmitted to banks by all public and private sector organisations through unsecured channels, such as paper-based mandates, flash drives, compact discs (CD), email attachments, etc,’’ the CBN said.
