Central bank releases framework to address payment system


The Central Bank of Nigeria on Monday released the Nigerian Payments System Risk and Information Security Management Framework to guide the management of risks associated with the payments system in Nigeria.

The framework which had already been approved by the apex bank became imperative in order to identify and address sources of systemic risks within the Nigerian payments system landscape.

Some of the risks that the framework is expected to address are systemic risks; credit risk; liquidity risk; operational risk; compliance, legal and regulatory risk, settlement risk and information security risk.

The framework is also meant to establish sound governance arrangements to oversee the risk management framework by ensuring that risks are identified, monitored, treated; and establish clear and appropriate rules and procedures to carry out the risk management objectives.

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Other objectives of the framework are to employ the resources necessary to achieve the payments system’s risk management objectives and integrate risk management into the decision making processes.’

The apex bank said the framework would guide the operators and users of the payment systems across Nigeria.

It said these systems may be organized, located, or operated within Nigeria (domestic payments), outside Nigeria (offshore payments), or both (cross-border payments) and may involve currencies other than the Naira.