General Legal Framework
There is no law that explicitly and exclusively deals with Payment systems in Nigeria. Rather, the CBN Act, as amended in 1999 gives the Bank the implicit powers to oversee and regulate the payments system. Section 41 of the CBN Act provides that "it shall be the duty of the CBN to facilitate the clearing of cheques and credit instruments for banks carrying on business in Nigeria and for this purpose, the bank shall at any appropriate time and in conjunction with other banks establish clearing houses in premises provided by the Bank in such places as the Bank may consider necessary". Section 17 provides that "the Bank shall have the sole right of issuing currency notes and coins throughout Nigeria--". Also, the Nigeria Deposit Insurance Corporation (NDIC) in exercising its' responsibilities as provided by NDIC Act of 1988 complements the supervisory function of the CBN in the nation's payment system. The extent of this responsibility is the insuring of all deposit liabilities of banks in order to protect depositors against bank failure and instill public confidence in the system. Also the Nigerian Stock Exchange plays a dominant role in the Nigerian Payments and Settlement landscape as the trading in equities is conducted via the floor of the exchange based on encompassing laws and regulations.
Read more about this topic: Central Bank Of Nigeria
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