CBN Urges Fintechs, Payment Service Providers To Adhere To Policy Framework


The Central Bank of Nigeria has urged financial technology companies, payment service providers and Deposit Money Banks engaged in offering payment solutions to customers to ensure they adhere to policy framework and standards that guide their respective operations in the ecosystem in which they operate.

The Deputy Director, Payments System Policy and Oversight, Central Bank of Nigeria, Mr. Musa Itopa Jimoh stated this in Lagos in the week during the corporate launch of Xpress Payment Solutions Limited.

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He explained that the CBN was trying to build an ecosystem that allows everyone to have equal opportunity to present and run his own system, adding that fintech was introduced into payment system with the aim of deepening financial inclusion in Nigeria.

The event was witnessed by representatives of some state governments, Deposit Money Banks, fintech organisations, e-payment industries who commented on the quality and reliable services provided by Xpress Solutions.

The deputy director represented the Director, Payment Systems Management Department, CBN, Mr. Samuel Okojere, who said the CBN made a commitment in 2011 to bring those that are outside the banking sector closer, hence the introduction of fintech companies into payment space.

Okojere said, “What does CBN expect from the operators in the financial payment service providers? Number one is compliance with set standards. This is the only thing that can make you integrate to global best practices.

If you are not complying with regulation, you cannot connect with the local one. There are rules that guide this service that we provide in Nigeria and also in the world.

“It is our joy today that our cards can go anywhere in the world and is being used. This is because we comply with the best practices, and I’m happy to hear that Xpress Payments has also competed in certification on PCIDSS.

“Our responsibility is to ensure that we all behave very well within the financial ecosystem. And so compliance is a major responsibility. I want to imagine that added to that responsibility of the board members is cyber crime, you also check and ensure that you comply with all the directives of CBN. Actually, non-compliance can bring your company down.”

The director, who charged the board of directors and other stakeholders in the financial services to take privacy and protection of customers data seriously, disclosed that bringing more people on board so they can benefit from financial services that payment providers offer “is one of the core responsibilities of the Central Bank of Nigeria.”

He said the cashless policy introduced by the apex bank was also meant to encourage more Nigerians to adopt electronic payment. “And again, to strengthen that, we came with a cashless policy basically to see how we can encourage people to adopt electronic payment option so that all these fanciful solutions that you have provided can be enjoyed.

Without cashless policy, I can decide not to pay my tax in cash. If I pay my tax in cash, then you have no revenue, you are not even in equation. It’s only when I chose to make my revenue collection through electronic form that a solution becomes very effective. Central Bank is driving that through cashless policy and encouraging all Nigerians to adopt electronic means of payment.

The Managing Director/CEO, Xpress Payment Solutions Ltd, Oluwadare Owolabi noted that every sector of human endeavour in the globe had been extensively characterised by technological disruption. “The need to satisfy the ever-increasing demands of customers for better service quality and innovations that work within the e-Payment industry coupled with this technological revolution created the dream that necessitated the birth of the company we are celebrating today.

“Consequently, distinguished guests, we started the journey with a clear focus and understanding of the needs of our target markets which formed the bedrock of our core business drivers: Easy, Fast, Secure. With these, our aim was to provide a stress-free experience for you by creating solutions that enable smarter living.

This we knew from the onset can only be realised by the assemblage of experienced and exceptional team and deployment of the cutting edge technology.” According to him, the commitment to deepen financial inclusion penetration in Nigeria and provide a seamless and hitch-free transaction experience for customers led to the creation of an array of e-Payment products and services by the organisation that had been embraced and deployed by some state governments in the federation and some commercial banks as well.

Credit: Vanguard.