* E-payments in Nigeria: Improved efficiency amid stiffer regulations
The Federation Account Allocation Committee (FAAC) disbursed the sum of N714.81 billion to the three tiers of government in August 2018 from the revenue generated in July 2018.
The amount disbursed comprised of N597.97 billion from the Statutory Account, N79.81 billion from Valued Added Tax (VAT), N12 billion additional distribution funds from NNPC and N25.03 billion FOREX distribution.
Federal government received a total of N298.29 billion from the N714.81 billion. States received a total of N183.77 billion and Local governments received N138.96 billion. The sum of N49.78 billion was shared among the oil producing states as 13 percent derivation fund while N25 billion was transferred to Excess crude Account (ECA).
Revenue generating agencies such as Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Department of Petroleum Resources (DPR) received N4.42 billion, N9.32 billion and N5.27 billion respectively as cost of revenue collections.
Further breakdown of revenue allocation distribution to the Federal Government of Nigeria (FGN) revealed that the sum of N242.42 billion was disbursed to the FGN consolidated revenue account; N5.44 billion shared as share of derivation and ecology; N2.72 billion as stabilization fund; N9.15 billion for the development of natural resources; and N6.17 billion to the Federal Capital Territory (FCT) Abuja.
Meanwhile, the Nigeria Inter-Bank Settlement System (NIBSS) recently released its e-payment fact sheet for the first half of the year. As at June 2018, the total number of active individual banking customers accelerated to 67.7 million from 59 million recorded as at December 2017.
Furthermore, the number of corporate and individual accounts inched higher by 25 percent and 9.5 percent to 7.5 million and 102.1 million respectively between December 2017 and June 2018. What’s more, the volume of cheques processed by the agency over the first half of the year, diminished by 10.6 percent to 4.7 million units when compared to the same period last year, while the volume of transactions via NIP (Internet Banking, Mobile ATM, POS, USSD, and bank branches) platforms spiked by 105 percent to 36.9 million.
Meanwhile, the Central Bank if Nigeria (CBN) recently issued regulations for the efficient operation of instant electronic funds transfer services in Nigeria effective 2nd October 2018. Among others, the regulation requires that banks and other providers of e-funds transfer services must submit an annual enterprise risk management framework to the CBN, maintain an approved robust anti-fraud management framework, permit transfers from all its services channels and are liable to a sanction of N10,000 per item for every failed NIP transaction not reversed to the customer’s account within 24 hours.
Analysts at United Capital however Juxtaposing the data trend with the freshly released CBN regulation and sanctions, they expect financial services institutions to ramp up the efficiency of their electronic platforms for service delivery, hence, ultimately adding value to customers.