The Central Bank of Nigeria (CBN) Monday released the Nigerian Payment Systems Risk and Information Security Management Framework to guide the management of risks associated with payment systems in the country.
The CBN released the guidelines on its website and said one of the objectives of the framework was to identify and address sources of systemic risks within the Nigerian Payment System landscape.
The apex bank said it would help to establish sound governance arrangements to oversee the risk management framework by ensuring that risks were identified, monitored and treated.
According to CBN, the framework will help to establish clear and appropriate rules and procedures to carry out the risk-management objectives.
It stated that the framework would also help to employ the resources necessary to achieve the payments system’s risk management objectives; and integrate risk management into the decision making processes of the Scheme Boards and Working Groups under PSV 2020.
The CBN said: “This Framework is designed to guide the operators and users of the payment systems across Nigeria.
“These systems may be organised, located, or operated within Nigeria domestic payments, outside Nigeria offshore payments, or both cross-border payments and may involve currencies other than the Naira or non-Naira systems and multi-currency systems.
“The scope of the framework also includes any payment system based or operated in Nigeria that engages in the settlement of non-Naira transactions operating within Nigeria and those that operate across the Nigerian borders cross border payment systems, along with their infrastructure providers and the Payment Service Providers (PSPs) that make up these systems.
“This framework does not apply to arrangements for the physical movement of cash or systems for settling securities nor apply to market infrastructures such as trading exchanges, trade-execution facilities, or multilateral trade-compression systems.
“It is also not intended to apply to bilateral payment, clearing, or settlement relationships, where a payment system is not involved, between financial institutions and their customers, such as traditional correspondent banking and government securities clearing services.”