May 03, (THEWILL) – The Central Bank of Nigeria (CBN) says it is tackling threats to payment system in order to advance the cashless policy and deepen financial inclusion.
The Governor, CBN, Mr Godwin Emefiele, disclosed this in his address at the ongoing seminar for Finance Correspondents and Business Editors in Calabar, Cross River State.
Emefiele, who was represented by the CBN Director, Monetary Policy, Dr Mahmoud Hassan, said the Bank was not unaware of the challenges confronting it in implementing the various payment systems.
He identified the challenges to include weak social infrastructure, activities of unlicensed entities, and cyber threats and fraud.
He noted that 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”.
According to him, some entities have continued to exploit access to information technology to engage in regulated activities without the appropriate licences and authorisation.
He noted that 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.
“However, the collaborative effort between the Central Bank of Nigeria and other players in the industry is helping to curtail the nefarious activities of these fraudsters.”
Emefiele 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).
“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.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
