An epayment system is a way of making transactions or paying for goods and services through an electronic medium, without the use of checks or cash. We use nigeria to exemplify a developing country that is increasingly pushing for adoption of a regulatory framework for epayment systems based on private ordering. Amending the central bank of nigeria act 1999 or other laws to clarify the finality of settlement. Business transactions has moved from manual form to electronic form, as online payment becomes underpin of systems of ecommerce and this has made the. Noncash payments, by contrast, involve the transfer of funds between accounts. Electronic paymenttransactions in nigeria epayment in. Receive up to 3 responses from the businesses that meet your need. Collections for public and private sectors in nigeria the regulation. This list of popular e payment services in nigeria will highlight some of the most popular online payment services providers in the country these service providers allow you make payments and receive payments online with ease. In the us, obep is an emerging payment method, and here, trustly has merged with paywithmybank to cover this market, seeking to create a seamless. The epayment providers association of nigeria eppan is a nonprofit organization representing the nigerian epayment industry and its body of stakeholders, with a holistic, result oriented approach to driving the growth of epayment industry in nigeria. Though, epayment may not be an entirely new concept in the nigerian business market, however, a cursory look at the epayment category in nigeria will reveal an emphasis on cardbased solutions with little penetration into the web and mobile processes xx. Impact of etaxation on nigerias revenue and economic. Related work the implementation of epayment system is dependent on the consumers behaviour.
An epayment rollout program in which 165,000 pos are expected to be deployed. Assessment criteria for epayment system adoption in nigeria in this paper, four types of assessment criteria were used to checkmate the users interest in adopting epayment 3, 12, 14and 17. This was followed in february 1997, with the introduction of a similar product called paycard, by diamond bank. We use nigeria to exemplify a developing country that is increasingly pushing for adoption of a regulatory framework for e payment systems based on private ordering. Impact of electronic payment system in the nigerian. Electronic payment channels in the nigeria banking sector and its impacts on national development tijani, j. The crux of this study is on the adoption of epayment system in nigeria. Its also called an electronic payment system or online payment system.
Today the atm, mobile, web, and pos are major epayment instruments currently in use in nigeria. Ayo1 and wilfred isioma ukpere2 1department of computer and information sciences, covenant university, p. Pdf electronic payment in cashless economy of nigeria. The central bank of nigeria the central bank of nigeria cbn has primary oversight of the payments system by virtue of the cbn act, as amended in 1999 the cbn, as with many other central banks, designs payments systems oversight based on criteria provided by the bank for international settlements. Answer a few questions so we can connect you with the right businesses. Some of these policy measures came with tremendous success despite the initial scepticisms of nigerians.
This study examined the impact of etaxation on nigeria s revenue and economic growth. In this chapter, we provide readers with an update on the latest regulatory, sector and market developments in these countries. This is a complete downloadable project materials on impact of electronic payment system in the nigerian financial institution from chapter one to five. Interestingly, in nigeria, epayment system is gaining prominence to the extent that users have now preferred to carry out monetary exchange without visiting brick and mortal banks. The study investigates the federal government of nigeria electronic payment system implementation and the constraints confronting it with a view to providing solutions to the constraints so identified. It is responsible for about 89% in volume of all epayment instruments since 2006 to 2008. From the study, it was found that atm dominated the penetration. Nigerians make n42trn epayment transactions in 6 months nbs. In our first edition of payment developments in africa, we explored the payment regulation in three key markets. A critical viewpoint 43 the governor of the central bank of nigeria embarked on bank recapitalization exercise as a strategic move to save the nigerian banking sector from incessant failure and collapse nwachuku, 2005 and gbolahan, 2005.
This helps in ensuring the effectiveness of stabilisation measures, keeps the currency in circulation clean and durable, and reduces the cost of cash management. However, in 20 under the directive of the cbn central bank of nigeria, nibss nigeria interbank settlement system plc developed the antifraud portal with a view of getting the banks to report their e payment frauds as it occurs. Pdf design of a secure unified epayment system in nigeria. Also, senior lecturer, faculty of law, kogi state university, anyigba, nigeria. The crux of this study is on the adoption of e payment system in nigeria. Interestingly, in nigeria, e payment system is gaining prominence to the extent that users have now preferred to carry out monetary exchange without visiting brick and mortal banks.
Open an electronic wallet and make quick online payments and withdraw funds at any time. Despite the governments resolve to place the country in the map of global electronic. The study investigates the federal government of nigeria electronic payment system implementation and. Agbonika josephine aladi achor commissioner, tax appeal tribunal, southeast zone, nigeria. On the home front, events over time have shown that the nigerian value exchange needs to be monitored, more secured and recorded by the regulatory authorities the central bank of nigeria cbn.
Oginni simon oyewole 20 in the study electronic payment system and economic growth. If you have been following the startup ecosystem in nigeria, you are probably inundated with news about fintechs and their activities on a daily basis. A total of 375,000 pos and 75,000 atms will be deployed by december 2015. Design of a secure unified epayment system in nigeria. The central bank of nigeria plans to sell n1tn worth of treasury bills in the fourth quarter of the year across three instruments. The arrival of the internet has taken electronic payments and transactions to. The rise of electronic devices has also made electronic banking in nigeria, a rising trend. Nigeria so as to place it on the right path in tune with global trends. Over the years, electronic payment system, often referred to as e payment system has grown to become the most acceptable process of settlement of financial transactions in all sectors of nations. The results of the analysis indicate the presence of epayment systems in the bank, which enjoys impressive acceptability, due to its ease of use and.
Nigeria is a major economy in the world and certainly a leader on the african continent. The automatic teller machine atm is the most widely used epayment instrument in nigeria. The changing environment of bank management in nigeria has impacted much on the number of services and risk which nigerian banks face. However, many of the nigerian banks adopted electronic banking system in the early 2000s. The security risks and environmental hazards in port harcourt sent office rents to its lowest in. People now stay comfortably in their homes and perform a banking transaction using electronic devices without increasing road traffic. An assessment of epayment infrastructures towards an. An empirical evaluation of different electronic payment channels in. Data was derived from the repositories of nigeria interbank settlement system nibss and the central bank of nigeria cbn. The payment system of a country plays a crucial role in its economy.
No country can exist in isolation as an island, trade wise. Nibss epayment fact sheet was developed by nibss enterprise intelligence unit for the purpose of sharing industry information that would facilitate innovation and growth in nigeria s epayments industry with nibss ebillspay, bill payment just got easier, pay your utility bills conveniently and with ease, requires no card or pin. Pdf epayment technology effect on bank performance in. Pdf epayment and its sustainable development in the nigerian. Dataset for electronic payment performance in nigerian.
Journal of internet banking and commerce, august 2006, vol. The impact of central bank of nigeria cashless policy in. Pdf epayment system is increasingly becoming a daring means of payments in todays business world. Recently, the cbn came out with two laudable agenda the islamic banking noninterest banking and the cashless economyepayment systembabalola,2008. An empirical assessment of the operational efficiency of. The genesis of corruption in nigeria might not really be associated with a particular period. In nigeria, usage of mobilebased payment systems has increased due to wide access to mobile phones as a payment form, both on the customer usage side and acceptance merchant side. Electronic banking has reduced dependence on certain locations before performing certain banking transactions. Further development of a secured unified epayment system. A critical viewpoint 43 the governor of the central bank of nigeria embarked on bank recapitalization exercise as a strategic move to save the nigerian banking sector from incessant failure. The core aim of this research proposal is to investigate empirically the effect of the e payment system cloud accounting on economic development in nigeria. There is no significant relationship between electronic payment and banking services delivery in nigeria rp 2 delivery in nigerian banks. List of popular epayment services in nigeria online dailys.
Nigeria national id card nid summary at the may 20 world economic forum on africa, the nigerian national identity. The arrival of the internet has taken electronic payments and transactions to an exponential growth level. Epayment system cloud accounting and economic development. While electronic payment system enjoys prominence in nigeria, evidence of its contribution to economic growth has not been empirically established. The role of taxation in promoting economic growth in nigeria is not fully felt, and optimal tax is not been realized that can engine economic growth primarily because of its poor administration. Top 10 online payment processing platforms in nigeria. The challenges of online payment in nigeria punch newspapers.
Igbunu richard department of computer science, school of sciences, college of physical education, mosogar, delta state. Further development of a secured unified epayment system in nigeria. Rents either stayed or declined to remain competitive. The study is motivated by the apparent low level of satisfaction with the level of epayment system in nigeria. Pdf this research paper looks at the effect of epayment transactions employing both volume and value of digital instruments currently. Evaluate the degree of usage of epayment in nigeria determine solutions to the identified constraints in epayment system implementation. The revamp of technology systems that manage retail epayment instruments is a common trend across emerging countries. Atm should properly be managed while government agencies should ensure efficient telecommunication service delivery. Executive summary payment developments in africa volume 2 3. A noncash payment instrument is therefore the means by which a payer gives its. However, in 20 under the directive of the cbn central bank of nigeria, nibss nigeria interbank settlement system plc developed the antifraud portal with a view of getting the banks to report their e.
Recently, the cbn came out with two laudable agenda the islamic banking noninterest banking and the cashless economy e payment systembabalola,2008. Financial system strategy 2020 central bank of nigeria. Epayment technology effect on bank performance in emerging economiesevidence from nigeria. Abstract the crux of this study is on the adoption of epayment system in nigeria. The nations electronic payment epayment system landscape has risen to a. The strides in information and communication technology ict makes e. Nonetheless, benjamin 2007 asserted that corruption in nigeria can be traced back to the colonial era when nigerians were bribed with different foreign goods in exchange for local products in exchange for slaves. This can be viewed as a positive contributory factor. No card or payment scheme shall compel any issuer or acquirer to send any transaction outside nigeria for the purpose of processing, authorization or switching, if the transaction is at an atm or at any acceptance device in nigeria and the issuer is a nigerian bank or any other. In nigeria, over the years most of these incidents have gone unreported. Exempting transactions in approved rtgs systems from a possible zero hour ruling ensuring that approved multilateral netting arrangements cannot be set aside amending the central bank of nigeria act 1999 or other.
We argue that although technical standards and selfregulation by the financial industry are important, the law is an. I must state that there are a number of issues that must be dealt with by the nigerian e payment companies which include that fact fraud must be. In the course of this study, two research propositions were formulated in null forms that will be tested to achieve the objectives of the study. In the year 1986, societe generale bank of nigeria sgbn introduced online, realtime banking within its 5 branches in lagos metropolis. Further development of a secured unified e payment system in nigeria. The automatic teller machine atm is the most widely used e payment instrument in nigeria. Impact of electronic payment system in the nigerian financial institution uthman saheed february 28, 2019 bankingfinance project topics materials this is a complete downloadable project materials on impact of electronic payment system in the nigerian financial institution from chapter one to five. Electronic payments in nigeria is a relatively new phenomenon. In this article we are going to talk about electronic payment system in nigeria, effect of e payments system to nigerian banks, impact of epayment in nigeria and also problems of epayment system in nigeria. The use of electronic payment systems provide a lot of benefits to its users but despite these, the nigeria economy is still regarded as cashbased where majority of its people prefer to carryout daily transactions with cash. The problems and prospects of etransaction the nigerian.
The epayment system, if well implemented will help achieve the cbns objective of expanding, deepening and modernizing the payment system in nigeria and also galvanize the cbn in ensuring that nigeria ranks among the top 20 economies of the world in line with the nations vision 2020 aspirations. Further development of a secured unified epayment system in. Even after some tax policies the tax authority has put in place over the few years such as the e payment scheme, tax identification number. Legal aspects of epayment in government by adeniji kazeem following the recent introduction of electronic payment systems in the nigeria such as automated teller machines atms, electronic funds transfer eft and internet banking, it is safe to say that we are gradually moving to a cashless society. Some customers have at least two atm cards depending on the. I must state that there are a number of issues that must be dealt with by the nigerian epayment.
The core aim of this research proposal is to investigate empirically the effect of the epayment system cloud accounting on economic development in nigeria. The new policy by central bank of nigeria cbn on cashless system of payment has raised a lot of concern to the growth of nigerian economy, with the objective. Impact of electronic payment system in the nigerian financial. Given that the purpose of introducing electronic tax system is to improve revenue collection which will in turn improve the countrys economic growth, the study empirically examined how the implementation of etaxation in 2015 has affected tax revenue, federally collected revenue and taxtogdp ratio. All atm transactions in nigeria shall be processed by a nigerian company.
Payment systems and financial innovation in nigeria nigeria. The regulation is a revision of the guidelines on electronic payment of salaries, pensions, suppliers and taxes in nigeria 2014, and is intended to guide the endtoend electronic payment of salaries, pensions and other remittances, suppliers and revenue collections in. Aug 22, 2017 home news nigerians make n42trn epayment transactions in 6 months nbs. This dataset gives a breakdown of transactions both in volume and values for eight different epayment channels authorized and adopted for settlement by all banks in nigeria. Guidelines on operations of electronic payment channels in nigeria. Nigerians make n42trn epayment transactions in 6 months. Electronic paymenttransactions in nigeria epayment in nigeria. Problems and prospects of electronic banking in nigeria. It is responsible for about 89% in volume of all e payment instruments since 2006 to 2008.
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