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DECEMBER 13, 2011

ENLIGHTENMENT FORUM on the implementation of END-TO-END ELECTRONIC PAYMENT OF SUPPLIERS, TAXES, SALARIES & PENSIONS. DECEMBER 13, 2011. Forum Objective. To further enlighten and carry-along PUBLIC SECTOR stakeholders on the implementation of end-to-end electronic payment of

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DECEMBER 13, 2011

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  1. ENLIGHTENMENT FORUM on the implementation ofEND-TO-END ELECTRONIC PAYMENT OFSUPPLIERS, TAXES, SALARIES & PENSIONS DECEMBER 13, 2011 Payment Systems Vision 2020

  2. Forum Objective To further enlighten and carry-along PUBLIC SECTOR stakeholders on the implementation of end-to-end electronic payment of Suppliers, Taxes, Salaries & Pensions Payment Systems Vision 2020

  3. Presentation Outline 1. Overview of NPSV 2020 2. Suppliers, Taxes, Salaries & Pensions Initiative3. Complying with e-Payment Directives4. Stakeholders’ Roles & Responsibilities5. Responsibilities, Infractions & Sanctions 6. Some Benefits of e-payment 7. Implementation Time Table 8. Next Steps9. Summary Payment Systems Vision 2020

  4. SECTION 1: Overview of NPSV Payment Systems Vision 2020

  5. Overview of National Payments Systems Vision 2020 National Payments Systems Vision 2020 • CBN in collaboration with key stakeholders in the Nigerian Payments community developed the National Payments Systems Vision 2020 (NPSV 2020) • NPSV 2020 is a sub-set of the Financial Systems Strategy 2020 (FSS 2020) Global Objective of NPSV 2020 To develop a payment system that is nationally utilized and internationally recognized Payment Systems Vision 2020

  6. Realising NPSV 2020 For ease of implementation, NPSV 2020 was broken into 11 distinct initiatives • Person to Person • Consumer Bills Payment • Government Suppliers • Taxes • Salary & Pensions • Securities Settlement • Cards • RTGS • Cheques & ACH • Legal • West African Monetary Zone (WAMZ) Payment Systems Vision 2020

  7. Suppliers, Taxes, Salaries & Pensions Payments Initiative 3 of the initiatives with similar target audiences and execution approaches have been harmonized to become the NPSV 2020 Suppliers, Taxes, Salaries & Pension e-Payment initiative Focus of the Harmonised Initiative: The development and operation of an enduring framework for end-to-end electronic payment of Suppliers, Taxes, Salaries and Pensions Payment Systems Vision 2020

  8. SECTION 2: Overview of Suppliers, Taxes, Salaries & Pensions e-Payment Initiative Payment Systems Vision 2020

  9. Suppliers, Taxes, Salaries & Pensions Payments Initiative What is End-to-End electronic Payment? Straight through, electronic processing of a payer’s instructions to effect payment to a beneficiary’s bank account … right from the comfort of your office Payment Systems Vision 2020

  10. Suppliers, Taxes, Salaries & Pensions Payments Initiative End-to-End electronic Payment of Suppliers, Taxes, Salaries & Pensions Seamless, straight through, electronic processing and payment of ALL FORMS of Suppliers, Taxes, Salaries & Pensions directly into beneficiary bank accounts and electronic remittance of associated schedules with real time feedback and status monitoring of payments by public and private sector organisations in Nigeria … right from the comfort of your office Payment Systems Vision 2020

  11. Suppliers, Taxes, Salaries & Pensions Payments Initiative e-Payment Initiative Scope: All Public & Private Sector Organisations who need to pay: Suppliers: All organisations Taxes: All Organisations Salaries: Organisations with 50 staff & above Pensions: Organisations with 50 staff/pensioners & above *Contributory Pension & Pensioners Payment Systems Vision 2020

  12. SECTION 3: Complying with Suppliers, Taxes, Salaries & Pensions e-Payment Directive Payment Systems Vision 2020

  13. Complying with the e-Payments Directive CBN has worked with various stakeholders over the last couple of years to ensure adoption of e-Payment is as easy as A-B-C Payment Systems Vision 2020

  14. Payment Systems Vision 2020

  15. Complying with the e-Payments Directive • Presidential Directive - January 01, 2009 • Pilot Implementation (e-manual) • Manual Mandates & Schedules allowed • Nationwide Stakeholders Engagement • Full-fledged Implementation • No Manual Cheques, Mandates, or Schedules • Compliance Monitoring Payment Systems Vision 2020

  16. Complying with the e-Payments Directive • Simple Infrastructure Requirements • Computer/laptop/iPad/etc. • Internet or VPN Connectivity Payment Systems Vision 2020

  17. CBN Approved e-Payment solution – What to look out for • Approved by CBN • Available for use at customer premises • Transparent Tariffs and charges • Supports multi-bank operations • Clear issues/dispute resolution processes • Open to CBN for online monitoring & Supervision CBN will not recommend any e-Payment solution. Our concern is compliance of approved solutions with recommended standards. Payment Systems Vision 2020

  18. CBN approved e-Payment solution - What to look out for • Comprehensive Functionality • End-to-end processing from your office • No CD, Flash disk or email transmission of data • Approval Work-flow • Replicates your existing payment approval processes • Account Details Validation • Account details are tied to account owner/No Duplicate owners • Robust Security • Role-Based security • System Access based only user role • Value-Based Security • Supports Amount Approval limits • Soft, Hard or Biometric token • Combination of: Unique User profile, Transaction Specific ID, Biometric Validation, etc. Payment Systems Vision 2020

  19. CBN approved e-Payment solution - What to look out for • Reporting • Audit Trail • Records of ALL activities of each user • Unique Transaction Reference • Each transaction must be uniquely identified • Transactions Status Monitoring • Status available to you at any time without calling your bank • Notifications/Advice • Send payment notice to beneficiary • Historical Reports • Online Reports must be available on transactions for minimum 3 years Payment Systems Vision 2020

  20. SECTION 4: Stakeholders’ Roles & Responsibilities Payment Systems Vision 2020

  21. Stakeholders’ Roles & Responsibilities • Public & Private Sector Organisations • Suppliers/Employees/Pensioners/Labour Unions • OAGF/States’ Accountant General • FIRS/States Board of Internal Revenue • Deposit Money Banks • e-Payment Solution Providers • PENCOM/Pension Fund Administrators/Custodians • Professional Bodies/Audit, Tax, Consulting Firms • Corporate Affairs Commission • CBN Payment Systems Vision 2020

  22. SECTION 5: Responsibilities, Infractions & Sanctions Payment Systems Vision 2020

  23. Infractions & Sanctions Public & Private Sector Organisations Payment Systems Vision 2020

  24. Infractions & Sanctions Beneficiaries (Employees/Pensioners/Suppliers/Tax Agencies) Payment Systems Vision 2020

  25. Infractions & Sanctions Deposit Money Banks Payment Systems Vision 2020

  26. Infractions & Sanctions e-Payment Solution Providers Payment Systems Vision 2020

  27. Infractions & Sanctions Other stakeholders Payment Systems Vision 2020

  28. SECTION 6: Benefits of e-Payment of Suppliers, Taxes, Salaries & Pensions Payment Systems Vision 2020

  29. Some Benefits of e-Payment JAMES DANJUMA12/12/2011 Robbers kill one, cart millions away from micro finance bank Dare devil robbers last weekend attacked a micro finance bank in Batsari Council Area of Katsina State, killing one person and carting away millions of naira. The stolen money, which was deposited earlier in the day, was for the payment of salaries of state workers in the area. Payment Systems Vision 2020

  30. Some Benefits of e-Payment • Safety of funds & lives • No undue attention, bullion vans, security escorts, etc. • Improved operational efficiency • Reduction in manual processes and associated errors • Make Payments at anytime from anywhere • weekday/weekend/public holiday/day/night • Monitoring of Transactions every step of the way • No need to call account officer or wait endlessly • Comprehensive Payment Records Database • Tax Payers, Suppliers, Employees, Pensioners, etc. Payment Systems Vision 2020

  31. Some Benefits of e-Payment • Reduced cost of consummating transactions • Saves time, effort, stationery, stress, etc. • Improved transparency & accountability • Historical records of every single transaction • Easily increase IGR • Effortless collection of different taxes & revenue • You are in good company • Many public & private sector organisations have already embraced e-payment • Promoted & Backed by Government • It’s nice to be in Government’s good books! Payment Systems Vision 2020

  32. SECTION 7: Implementation Time Table Payment Systems Vision 2020

  33. Implementation Time Table Issuance of Guidelines by CBN • August 2010 Stakeholders Engagement & Awareness Campaign • January to December 2011 Implementation Commencement • January 2, 2012 Payment Systems Vision 2020

  34. SECTION 8: Next Steps Payment Systems Vision 2020

  35. Next Steps • Contact a CBN approved provider OR your bank for an e-Payment solution TODAY • Provide basic e-Payment infrastructure • Activate selected e-Payment solution • Train relevant staff on use of new system • Commence use of your e-Payment system • STOP manual cheques/mandates/schedules for payment of suppliers, taxes, salary & pension • Endorse compliance charter & send copy to CBN Payment Systems Vision 2020

  36. Payment Systems Vision 2020

  37. SECTION 9: Summary Payment Systems Vision 2020

  38. Summary End-To-End Electronic Payment of Suppliers, Taxes, Salaries & Pension commences Nationwide on January 2, 2012 …BE PREPARED Payment Systems Vision 2020

  39. For more Information Primary Contact: Sam Okojere Email: scokojere@cbn.gov.ng Phone: 08037850757 Website: www.cenbank.gov.ng Payment Systems Vision 2020

  40. Questions & Answers Payment Systems Vision 2020

  41. THANK YOU Payment Systems Vision 2020

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