ENLIGHTENMENT FORUM on the implementation of END-TO-END ELECTRONIC PAYMENT OF SUPPLIERS, TAXES, SALARIES & PENSIONS

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ENLIGHTENMENT FORUM on the implementation
ofEND-TO-END ELECTRONIC PAYMENT OFSUPPLIERS,
TAXES, SALARIES PENSIONS

• DECEMBER 13, 2011

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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

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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

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• SECTION 1
• Overview of NPSV

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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

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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)

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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

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• SECTION 2
• Overview of Suppliers, Taxes, Salaries
  Pensions e-Payment Initiative

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Suppliers, Taxes, Salaries Pensions Payments
Initiative

• What is End-to-End electronic Payment?
• Straight through, electronic processing of a
  payers instructions to effect payment to a
  beneficiarys bank account
• right from the comfort of your office

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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

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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

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• SECTION 3
• Complying with Suppliers, Taxes, Salaries
  Pensions e-Payment Directive

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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

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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

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Complying with the e-Payments Directive

• Simple Infrastructure Requirements
• Computer/laptop/iPad/etc.
• Internet or VPN Connectivity

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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.

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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

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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

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• SECTION 4
• Stakeholders
• Roles Responsibilities

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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

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• SECTION 5
• Responsibilities,
• Infractions Sanctions

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Infractions Sanctions

• Public Private Sector Organisations

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Infractions Sanctions

• Beneficiaries (Employees/Pensioners/Suppliers/Tax
  Agencies)

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Infractions Sanctions

• Deposit Money Banks

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Infractions Sanctions

• e-Payment Solution Providers

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Infractions Sanctions

• Other stakeholders

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• SECTION 6
• Benefits of e-Payment of Suppliers, Taxes,
  Salaries Pensions

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Some Benefits of e-Payment
JAMES DANJUMA 12/12/2011
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. 
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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.

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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
• Its nice to be in Governments good books!

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• SECTION 7
• Implementation
• Time Table

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Implementation Time Table

• Issuance of Guidelines by CBN
• August 2010
• Stakeholders Engagement Awareness Campaign
• January to December 2011
• Implementation Commencement
• January 2, 2012

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• SECTION 8
• Next Steps

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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

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• SECTION 9
• Summary

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Summary

• End-To-End Electronic Payment of
• Suppliers, Taxes, Salaries Pension commences
  Nationwide on
• January 2, 2012
• BE PREPARED

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For more Information

• Primary Contact Sam Okojere
• Email scokojere_at_cbn.gov.ng
• Phone [phone]
• Website www.cenbank.gov.ng

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Questions Answers
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THANK YOU