N20m fine prescribed for offender of payment system bill

With no existing legislation specific to payment systems, a new Payment System Management Bill, 2016 has prescribed fines ranging from N200,000 to N20 million for individuals and corporate bodies contravening its provisions.

The Bill was drafted by Legal Special Interest Group of PSV2020 consisting of representatives of Central Bank of Nigeria (CBN), deposit money banks (DMBs), payment system service providers, National Identity Management Commission (NIMC) and the Federal Ministry of Justice.

It is being considered by the Senate Committee on Finance.

Nigerian Tribune gathered that the Group studied legislations on payments system of some countries including India, Namibia, Ghana, South Africa, Croatia, Australia, the European Union and Malaysia in carrying out its task.

It was then approved by the Federal Executive Council for presentation to the National Assembly as an executive bill.

National Assembly sources, however, disclosed that after harmonising the bill with another one drafted by Senator John Enoh, chair of Senate Committee on Finance with a similar name and content, it has been renamed Payment System Management Bill, 2017.

Attempts by various stakeholders to formulate a specific legislation on payment system may end in chaos unless deliberate efforts are made to rein in and harmoibed for offenders of Payment Systems Bill

nise the three separate bills currently in the works.

The first is the Payment System Management Bill, 2016, packaged by the Legal Special Interest Group of PSV2020 was charged with the responsibility of coming up with the bill.

Another is the Management, Administration, Operation, Regulation and Supervision of Payment, Clearing and Settlement Systems in Nigeria and for Related Matters otherwise known as National Payment System Bill, 2017 (NPSB).

The bill has the objectives of “creating a legal, institutional and regulatory framework that would ensure a transparent, effective and efficient management, administration and operation of payments, clearing and settlement systems in Nigeria;

“Ensure safety and certainty in payment, clearing and settlement systems; institutionalize best practices in payment systems management in Nigeria;

“Ensure nationally utilised and internationally recognised payment systems encompassing the total payment processes from issuance of instruction to final settlement; and

“Provide uniform, comprehensive and effective mechanism for the settlement of disputes arising from payment systems management.”