Nigeria: CBN Orders Banks to Dishonour Unsecured Payments Instructions

Daily Trust (Abuja)

Kayode Ekundayo

10 January 2012

Lagos — The Central Bank of Nigeria (CBN) has urged banks to dishonour instructions that do not support its e-payment initiative.

Today is the commencement date for the full implementation of end-to-end straight through electronic payments of suppliers on all forms of taxes, salaries and pensions by both private and public organizations with more than 50 employees/pensioners in Nigeria.

In a circular addressed to all deposit money banks and signed by Gaius I. Emokpae, acting director, banking and payments system department, banks have been warned to dishonour instructions that do not support the e-payment initiative.

“To this end all Deposit Money Banks (DMBs) are to dishonour payment instructions with schedules delivered via unsecured methods such as flash drives, compact discs or email attachments with effect from Tuesday 10th of January this year,” the circular said.

To support this initiative, deposit money banks were implored to properly educate and advise their customers on the adoption and implementation procedures for an end-to-end e-payment.

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