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Regulations For Bill Payments, Direct Debit Out – CBN



The Central Bank of Nigeria (CBN) has released revised regulations for bill payments and direct debit scheme in the country. The regulations, according to the apex bank, are part of its efforts to promote sound financial system in Nigeria, issue guidelines and facilitate the development of an efficient and effective payments system in Nigeria. The regulation for direct debit schemes recognizes the existing and emerging multichannel options (Online platforms, Instant Payments etc.) applied for direct debit instructions in Nigeria.

CBN said the provisions of the regulation were harmonised with developments in the payments system since the release of the previous version released in 2017. Direct debit is a cashless form of financial settlement which facilitates recurring payments. It permits the originator of the instruction, known as biller to collect amounts due from a payer through the payer’s bank by leveraging an instruction or mandate provided by the payer. The regulation on bill payment covers payments on various channels and any platform that seeks to integrate the payment side of commercial activity and merchant aggregators in Nigeria. The payment methods include cheques, cards, direct debit, instant payments, and automated clearing house, amongst others.