The Central Bank of Nigeria (CBN) on Tuesday, September 10, released regulation for electronic payments and collections for public and private sectors in the country.

The News Agency of Nigeria (NAN) reports that the regulation is a revision of the Guidelines on Electronic Payment of Salaries, Pensions, Suppliers and Taxes in Nigeria (2014).

The CBN, in the regulation, introduced a penalty of two million for Deposit Money Banks (DMBs) on third party e-payment solution not approved by it on every repeated occurrence.

It also introduced penalty of One million naira for Other Financial Institutions (OFIs) on third party e-payment solution not endorsed by the apex bank.

NAN reports that the CBN also introduced other fines for other forms of infractions.

The apex bank said in the regulation on its website that it was intended to guide the end-to-end electronic payment of salaries, pensions and other remittances, suppliers and revenue collections in Nigeria.

“The objective of the regulation is to fully align with the core objectives of the National Payments System Vision 2020.

“It is 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.

“This will reduce the time and costs of transactions, minimise leakages in revenue receipts and at the same time provide reliable audit trails, thereby ensuring that the Nigerian Payments System aligns with international best practices,” it said.

The CBN noted that the regulation was set out to provide all stakeholders with the operational procedures that guide end-to-end electronic payment for the public and private Sector.

It states that the regulation applies to all CBN regulated entities operating in Nigeria.

The apex bank also mandated adoption, implementation and compliance with the directives on end-to-end electronic payments of all forms of salaries, pensions & other remittances, suppliers, revenue collections.

It said that it was not limited to taxes and levies, among others.