The Central Bank of Nigeria (CBN) has begun the process of developing the Payment System Vision 2030 strategy, which will define the strategic agenda for the Nigerian Payments System over the next ten years.
The new Payments System is coming just one year after the introduction of Payment System Vision (PSV) 2020.
The information is contained in an official document obtained by Nairametrics. The document was addressed to all Deposit Money Banks, Other Financial Institutions, and Payment System Providers. According to the CBN, the payments industry is currently experiencing radical change internationally and in many countries domestically.
CBN stated that since 2006, two strategy roadmaps have been published. These have created a robust and well-utilized payments environment. However, the apex bank noted that innovation and competition are now being driven by deployment and adoption of new technology solutions and the encouragement for new entrants through new regulatory regimes.
In light of this and also in an effort to consolidate the previous strategy roadmaps, CBNstated that it is time to create a new agenda for the payments system in Nigeria.
“THE TWO PREVIOUS RELEASES OF PSV2020 HAVE LARGELY ACHIEVED THEIR OBJECTIVES. NOW IS THE TIME TO CREATE A NEW AGENDA FOR THE PAYMENTS SYSTEM IN NIGERIA – PAYMENTS SYSTEM VISION 2030 – ONE THAT DEFINES A FRAMEWORK FOR THE NEXT TEN YEARS.”
Earlier Developments: In March, CBN disclosed that it has commenced a review of Payment System Vision (PSV) 2020, with a view to setting new targets under a refreshed version tagged PSV 2030. This was revealed by the Deputy Governor, Financial System Stability (FSS) of the CBN, Mrs. Aisha Ahmad, at the 2019 Electronic Payment Incentive Scheme (EPIS) Efficiency Awards held in Lagos.
“ELECTRONIC TRANSACTIONS ARE NOT YET AT DESIRED LEVELS, INCREASING DIGITISATION HEIGHTENS CYBERSECURITY THREATS WHILE POLICYMAKERS ARE FACED WITH THE TWIN BUT OFTEN CONFLICTING OBJECTIVES OF FOSTERING TECHNOLOGICAL INNOVATION WHILST MANAGING THE RISKS TO FINANCIAL STABILITY.”
Mrs. Aisha further stated that in furtherance to payment system objectives in response to industry demands, payments system has changed significantly and continues to evolve. New technologies and a growing number of financial technology companies in the markets are supporting faster payments and settlements.
Stakeholders involvement and phases: The CBN stated that given the current rapid pace of change, it is seeking the views of a wide range of industry stakeholders and experts. Essentially, the PSV2030 framework must recognise the swiftly evolving user requirements, technical solutions, regulatory environments and external threats that typify the industry.
The creation of PSV2030 comprises of three main phases:
Phase 1 – Scope and Consult: During this current phase, the CBN seeks input from current and potential stakeholders, both nationally and from other countries
Phase 2 – Design and Plan: The information received from Phase 1 will be used to develop the Payments Framework that will recognise the approaches being adopted in other countries but will be appropriate for the local market in Nigeria.
Phase 3 – Deploy: Likely to be a sequential implementation over many years and is adaptable within the defined framework to respond to changes in technology and platforms. The framework should look to introduce a new architecture where appropriate and seek to retire legacy environments when no longer relevant.
Upshots: Meanwhile, the CBN stated that the objective is to complete a consultative draft of PSV2030 in time for an International Payments Conference in early September 2019.
Therefore, the CBN request stakeholders contributions on different dimensions of an efficient and effective payments system. Also, to respond to all or part of the questions and topics outlined in the document to provide a framework for consistent responses.
Source: By Bamidele Samuel Adesoji