HIGHLIGHTS OF THE CENTRAL BANK OF NIGERIA’S SUPERVISORY FRAMEWORK FOR PAYMENT

On the 8th of July 2021, the Central Bank of Nigeria (“CBN”) issued a Supervisory Framework for Payment
Service Banks (“the Framework”) to strengthen their financial inclusion, ensure adequate consumer
protection and streamline their day-to-day operations with a view to promoting transparency in their
activities.
Prior to the Framework, the CBN issued its Guidelines for the Licensing and Regulation of Payment Service
Banks (PSBs) in 2018 (revised 2020) with a view to ensuring that 80% of adults eligible to hold bank
accounts in Nigeria have access to financial services by the end of 2020. The revised Guidelines aims at
ensuring that PSBs leverage on mobile and digital services to boost access to financial services for low-
income earners and the unbanked segments of the population. The key objective of the PSBs is to enable
high-volume, low-value transactions in remittance services, micro-savings and withdrawal services in a
secured technology-driven environment, particularly in the rural areas.
This article highlights significant provisions in the Framework.