E-Financial
CBN Seeks Banks’ Support to Tackle Payment System Impediments
The Central Bank of Nigeria (CBN) yesterday called for support from the banking sector to strengthen consumer confidence in the country’s payment system.
Godwin Emefiele, governor of the apex bank, stated this in Abuja while delivering a keynote address at the eight annual banking and finance conference.
The conference with theme, ‘Positioning Nigeria’s payments systems for global competitiveness’, was organized by the Chartered Institute of Bankers of Nigeria (CIBN).
Emefiele said that while the apex bank had come a long way in repositioning the country’s payment system, there was need to ensure the security and reliability of the payment system.
He listed some of the challenges currently facing the system as weak risk management frameworks, security issues, resistance of target customers to patronize new products and lack of unique identifier for customers across institutions.
Others are high operating costs, interconnectivity of networks, low level of card usage on point of sale and non-transparent pricing.
Represented by Dr. Sarah Alade, CBN deputy governor, Economic Policy, he said through some of the bank’s initiative, there had been a drop in card related fraud by 98 per cent.
He said, “While many of the CBN’s efforts have gone into the transformation of the payment system in line with global trends, we should not lose sight of the associated risks and challenges which I hoped would be adequately addressed at this conference.
“By this, we will be able to strengthen consumer confidence in the safety, security, reliability of our payment systems, bearing in mind that when this trust is undermined, then public confidence in the financial services industry is eroded and the entire economy loses.”
President Goodluck Jonathan while declaring the conference open said as a self-regulatory organization, the CIBN remains a major stakeholder in the transformation initiative of the federal government.
The president who was represented at the event by Jonah Otunla, accountant general of the Federation, said as professional bankers, who have a very important role to play in the transformation and development of the country, high level of professional conduct and ethics must be displayed at all times.
He said, “Banking practice demand enormous responsibilities for the trust and confidence which the society places on the practitioners because of their leadership roles as providers of the most crucial resource for commerce and industry in the facilitation of economic growth and development.
“You must be aware that banks and other financial institutions constitute a formidable group of stakeholders in a modern economy, for which society demands a high level of professional conduct and ethics.”
Also speaking, Mrs. Omobola Johnson, minister for Communications Technology urged banks to put in place cost effective infrastructure for effective payment system in the country.
She said, “I will like to enjoin the CIBN and the banking industry to ensure that they roll out a robust and cost effective infrastructure that covers the entire country,’’
“You must come up with a win win solution that enables the banking industry , the telecoms industry to work side by side to grow a successful mobile payment industry that will be envy of other nations.”
In her address of welcome, Mrs Debola Osibogun, CIBN president, said the conference was convened to strengthen the knowledge of participants particularly on issues affecting the banking sector.
She said the institute had developed its relevance over the years as an active partner in the development of the services industry and the economy.
Titan Trust Bank has selected Oracle FSS for its core and digital banking technology, it is understood.
The start-up bank recently obtained its license by the Central Bank of Nigeria (CBN).
It’s understood that Temenos and Infosys also competed for the deal.
The shortlist came down to the two most widely installed international core systems in Nigeria, Infosys’ Finacle and Oracle FSS’s Flexcube.
The Nigerian banking sector has seen a great deal of upheaval over the years, with many mergers, start-ups and closures. Flexcube is a well respected name since the late 1990s (the pioneer was Access Bank, now one of the country’s top five banks) and has been a commonly selected platform since then.
The new bank is believed to be one of five to have gained regulatory approval of late (Globus Bank is another).
Local media sources say the new licences stem from the Central Bank’s desire to attract new investments into the sector and better serve the country’s 50 million+ unbanked and under-banked citizens.
Titan Bank is said to be headed by a former executive director of Heritage Bank (which is a Finacle user).
Oracle FSS did not respond to request for comment.
International Monetary Fund (IMF), has appointed Tony Elumelu, Nigerian billionaire and group chairman of Heirs Holdings, owners of United Bank of Africa, to its advisory council on entrepreneurship and growth, convened by Kristalina Georgieva, the fund managing director.
The announcement was disclosed in a statement on Friday.
According to the statement, the IMF advisory council comprises global business leaders, policymakers, and academics dedicated to identifying and addressing regulatory barriers to entrepreneurship.
The IMF said Elumelu will be instrumental in ensuring that Africa’s entrepreneurship is central in policy making.
“Elumelu, Africa’s leading advocate of entrepreneurship and whose Foundation has funded, mentored, and trained over 25,000 African entrepreneurs since 2015, champions entrepreneurship as the engine for the economic transformation of Africa,” the statement reads.
“A self-made entrepreneur, Elumelu’s embracing of entrepreneurship is fundamental to his concept of Africapitalism, his belief that Africa’s private sector can and must play a leading role in the continent’s development, making long-term investments that deliver social and economic value.
“Elumelu will be instrumental in ensuring that Africa’s entrepreneurial potential is central to global economic policy making.”
Speaking at the inaugural meeting of the advisory council on March 26, Georgieva said the appointees would share their experiences on how macroeconomic and financial policies “can provide a supportive environment for innovation, entrepreneurship, and productivity — key ingredients for a thriving private sector and strong economic growth”.
Africa’s Micro, Small, and Medium Enterprises, fintech industry, scaling remittances, and cross-border payments will be the driving forces behind the continent’s digital ballooning payments system, which is estimated to reach $1.5 trillion by 2030.
This is according to a MasterCard-commissioned study by Genesis Analytics, which states that the digital payments economy is growing faster on the continent.
This comes as the World Bank says Sub-Saharan Africa has shown significant growth in financial inclusion over the past decade, much of it driven by mobile money account adoption.
Dimitrios Dosis, president, Eastern Europe, Middle East and Africa at MasterCard, comments: “Africa is filled with immense possibilities, and its people have the potential to shape the global economy in the decades ahead.
“MasterCard remains deeply committed to driving digital transformation across the continent, working closely with entrepreneurs, merchants, banks, start-ups, telcos, and governments. By increasing our investments, expanding innovation, and fostering inclusion, we are helping build a more connected and accessible digital future.”
The payment technology company went on to say as a longstanding technology partner to Africa, its continues to strengthen its commitment to the continent’s digital growth through strategic investments, public-private partnerships, and innovation initiatives that drive financial health and economic growth.
In addition, it says trends in Africa signal a strong shift towards digital transactions, with businesses and consumers increasingly embracing contactless solutions, further accelerating economic participation and financial accessibility across the region.
“For over five decades, MasterCard has worked alongside African governments, businesses, and communities to advance financial inclusion and economic development.
“With Africa projected to host nine of the world’s 20 fastest-growing economies, we are focused on leveraging our expertise and a technology to support the continent’s continued digital transformation.
“Our investments today will help build a more resilient economy for the future,” says Mark Elliott, division president, Africa, MasterCard
By fostering collaboration with key stakeholders, MasterCard says it aims to enhance digital connectivity, expand economic opportunities, and enable millions of people and businesses to thrive in the digital economy.
Titan Trust Bank Selects Oracle FSS for Core and Digital Banking Technology
IMF Appoints Elumelu, Nigerian Businessman to Advisory Council
NCS to Launch Electronic System for Cash Declarations at Airports
IHS Nigeria Hosts Telecom Industry Stakeholders to Discuss Protection of Critical National Infrastructure in Lagos State
Aquaterra Energy Secures Multi-million-dollar well Intervention Contract with Intrepid Energy in Nigeria
Telecom2 days agoAgain, Labour Fumes, Threatens Shutdown of Telcos over Non-Implementation of 15 Percent Tariff Reduction
News2 days agoNNPC Ready to Go to Capital Market for IPO- CFIO
E-Business2 days agoFG Launches Online Visa Approval Centre
E-Business2 days agoQNET Disassociates From Fraudulent Academy in Abuja, Supports EFCC Arrest
E-Business2 days agoFirm Discovers Sophisticated Chrome Zero-day Exploit Used in Active Attacks
E-Financial2 days agoFintech, Remittances Anchor Africa’s Booming Payments System
E-Business2 days agoNITDA Partners JICA to Launch Nigeria-Japan Startup Hub
Telecom2 days agoEverything You Need to Know About MTN’s MIP 2025 Fellowship Webinar