CBN Threatens Daily Fines for Payment System Noncompliance

The Central Bank of Nigeria has warned that banks and electronic payment service providers must renew their operating licences by the regulatory deadline or face a N10,000 daily penalty.

This warning comes from Governor Godwin Emefiele through a circular titled 'Re: Sanctions on erring banks/e-payment service providers for infractions of payment system rules and regulations'.

The Payments System Policy and Oversight Office, established by the Central Bank of Nigeria to strengthen oversight of payment systems, will monitor existing and planned payment infrastructure. This office focuses on switching companies and mobile payment operators to ensure compliance.

Director Dipo Fatokun of the Banking and Payment System Department emphasized that operators in the National Payment System will be penalized N10,000 per day for violations until the infractions cease. This enforcement mechanism targets payment system rule adherence.