CBN introduces new payment system

The Central Bank of Nigeria (CBN) has introduced a new payment system called Real-Time Gross settlement (RTGS) system as part of efforts to implement Payment System Vision (PSV) 2020 strategy.


CBN’s Deputy Governor (Operations), Mr. Tunde Lemo, made this known while briefing journalists on Thursday in Abuja.

The News Agency of Nigeria reports that Lemo, who is expected to proceed on retirement on January 11, said that CBN put live operations to the new system on December 16, 2013.

He said the new RTGS was integrated with Scrip less Security Settlement System (SSSS) and would replace the old payment system in use since seven years ago.

“The SSSS, on the other hand, is a new initiative to issue, manage and settle government and other money market securities processed as electronic records in a Central Securities Depository (CSD) system.”

He explained that the RTGS was an inter bank payment infrastructure that was facilitating the real time settlement of electronic funds transfers on gross and irrevocable basis.

Lemo said that RTGS was built on swift standards to allow for safer, easier and faster inter connectivity with other payment system infrastructure both locally and internationally.

“It serves as the nucleus of the national payment system, as all payments finally settle in central bank money through settlement accounts maintained for designated financial institutions.”

On SSSS, he said it would facilitate the electronic management of the entire life cycle of securities transactions.

He said the system would manage the primary and secondary market securities and facilitate efficient open market operations.