Regulatory Alerts2010-02-03 | BOD/PSV2020/OPS/114DRecommended Standards for Electronic Payments to Government Suppliers
The Central Bank of Nigeria (CBN) has established guidelines for electronic payments to suppliers, targeting Ministries, Departments, and Agencies (MDAs). The guidelines encompass various aspects such as minimum infrastructure requirements, recommended standards, tariffs/charges, sanctions, and dispute resolution. The CBN has set out minimum infrastructural needs for MDAs to implement electronic payments. These include a computer with business software like Microsoft office, internet access or modem with data compatibility, a functional telephone line, etc. A recommended standard involves end-to-end processing of transaction instructions, approval workflow, account detail validation, role-based security, and value-based security. In addition to these, the solution must have proper reporting format, keep records of activities, generate and send credit advice, and allow status feedback on payments within 48 hours. Tariffs and charges for electronic payment services are determined between MDAs, Depository Money Banks (DMBs), and Payment Service Providers (PSPs) and included in their Service Level Agreement (SLA). No charges should be imposed on beneficiaries of salaries/suppliers' payments. For dispute resolution, PSPs must establish processes to address issues that arise due to system malfunction errors and delays in posting. These disputes can escalate to the CBN Oversight Office for resolution. Any transgressions in processing transactions may result in sanctions, with repeated offences potentially attracting further punitive measures from the CBN.