It appears many Nigerians faced the challenges during the period of Naira notes mop-up by the Central Bank because of the apex Bank’s poor assessment.
It is one thing to have a desire to implement a policy and it is another to be sure that that policy can thrive without much trouble.
The CBN has opened up on why Nigerians suffered so much during the Naira scarcity period.
Those that had embraced the new payment systems had issues with unsettled transactions. Many transactions failed.
Giving an update on what the CBN is doing to address the issue, the CBN Governor, Godwin Emefiele, said “the Bank was not unaware of the challenges confronting it in implementing the various payment systems”.
Emefiele was represented at the seminar for Finance Correspondents and Business Editors in Calabar, Cross River State by the CBN Director, Monetary Policy, Dr Mahmoud Hassan.
Identifying the challenges, he said they include weak social infrastructure, activities of unlicensed entities, and cyber threats and fraud.
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According to him, the effective operation of payment platforms is highly reliant on stable telecommunication networks and power infrastructure.
He, however, lamented that “these are currently not optimal in Nigeria, thus, impacting the stability and resilience of the payment system”.
Also, he highlighted that some entities have continued to exploit access to information technology to engage in regulated activities without the appropriate licences and authorisation.
Furthermore, the apex bank chief said the activities of fraudsters continue to threaten the resilience of the payment platforms, adding that the confidence of the public is impacted by the unwholesome activities.
CBN’s Solution To Cashless Policy Threats
Emefiele however, enumerated measures adopted by the bank to counter identified challenges to the payments system initiatives.
He said: “In response to the challenges posed by cyber threats, the CBN has put the following initiatives in place: The Nigeria Electronic Fraud Forum (NeFF)” which “consists of all relevant stakeholders, to proactively address challenges and safeguard the integrity of the e-payment channels”.
Under this measure, he said “Payment Card Industry Data Security Standard: mandatory for any entity that processes, stores/saves or transmits payment card data” has been put in place.
Also, “the Financial Industry Cybersecurity Fusion Centre serves as a sectoral Computer Security Incident Response Team (CSIRT) for the Nigerian Financial Services Industry,” he said.
Other Initiatives against cybersecurity and fraud in Nigeria include: Cybercrime Acts’ enacted in 2021 to address National Cybersecurity Policy and Strategy.
He also included “Endorsement of the SWIFT Sanction Screening Service & SWIFT Cross-border payments security (ISO20022 Standard) for banks.
“Risk-based Cybersecurity framework for Payment Service Providers (PSPs) and Deposit Money Banks (DMBs).
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“Enforcement of Two-factor Authentication (2FA) requirement on all electronic banking products.
“Enforced the Installation of Anti-Skimming Device on ATMs.”
Emefiele concluded that “with these initiatives in place, the CBN has demonstrated irrevocable commitment to ensuring the stability and safety of the Nigerian payment system”.
