By Bolaji Peters (SIWES student, Polytechnic Iresi)
The Central Bank of Nigeria has directed commercial banks to disconnect non-deposit-taking financial institutions, such as switches, payment solution service providers, and super agents, from the Nigerian Inter-Bank Settlement System Instant Payment Outward System.
This directive stems from a violation of the CBN’s Electronic Payment Guidelines, prohibiting the inclusion of non-deposit-taking entities as beneficiaries.
Emphasizing compliance, the CBN underscores that only financial institutions with valid deposit-taking licenses are eligible to receive funds.
The directive pertains to the NIP Outward Transfer channels, aligning with regulatory guidelines and emphasizing the necessity for entities in the payment ecosystem to obtain specific licenses from the CBN for lawful operation and ongoing regulatory oversight.
