E-Business
NCS Must not Compete with Commercial Payment Schemes-Experts
Global e-payment experts who converged at the second E-Payment Providers Association of Nigeria (E-PPAN) Techno-Interactive conference in Lagos recently agreed among other issues that the Nigeria Central Switch (NCS) should not be a profit oriented concern.
To address the challenges of non-interoperability of payment schemes in the country, the Bankers Committee, in 2005, initiated the establishment of the NCS to be operated by the Nigeria Interbank Settlement System (NIBSS) and to connect all payment switches; hence, making it possible for banks customers to use their cards on all payment devices irrespective of the owner.
Mrs. Bridget Morris, Africa’s leading transaction switching expert, whose paper ‘Switching, Interoperability and Interconnectivity’ was presented by Mrs. Onajite Regha, CEO of E-PPAN argued that NCS as a transfer systems, which exist between the banks are ‘infrastructure’ companies and should not be for profit companies because in this scenario the owners and customers are the same entities, namely, the banks.
“I would suggest that Interswitch, ValueCard and eTranzact and others should really be categorised as Payment Service Providers or Payment ‘Schemes.’ They need to be ‘for profit’ entities. They are providing payment services and gateways into the main clearing and settlement systems. They are not guaranteeing settlement and finality of payment themselves”, she said.
She explained that often Central Banks set-up or own these interbank switches and operates them with nominal fees and not for profit. According to her many countries consider that Central Bank’s business is about monetary policy, interest and exchange rates, and not about operating switches; so the switch company is usually separated off and run by the retail banks. They focus on clearing and settling of retail payments which is considered to be the business of retail banks not Central Banks.
She however, commended Mr. Sanusi Lamido, governor of Central Bank of Nigeria (CBN) for making difficult and positive gains in consolidating the banking industry and tackling bad loan books. According to her, this ‘tough’ action is provoking much international admiration. “We need to do likewise in the payments industry. We, in Africa, need to be seen to adhere closely to ‘best practice’ wherever possible in order to convince the rest of the world of our credibility. Central EFT switches and retail payments clearing houses and RTGS systems are the assurances that foreign partners look for”, she submitted.
Mr. Kyari Abba Bukar, managing director of ValuCard Nigeria who chaired the events that brought together banks, payment scheme operators and the media said interoperability and interconnectivity is not only desirable but achievable in the system. However, he argued that achieving the objective rests on three critical pillars. These are common and appropriate understanding by all industry stakeholders of the concept of interoperability; common and appropriate understanding of the roles and functions of payment card industry players; and strict adherence to professionalism and the distinct responsibilities of the different players built on the concept of separation of roles.
He noted that NCS should connect to other switches in order to ensure that when an issuer and acquirer are connected to different switches, the NCS will switch transactions between the different switches. However, where primary switches exist, NCS should not see transactions between issuers and acquirers that are connected to the same primary switch, as that will translate to competition with primary switches.
Primary switches should not establish connection with each other. If such happens, it would amount to elimination of the central switch. “As a monopoly, a central switch must not promote any card or payment scheme or engage in processing and other services of other industry players,” he said.
However, Mr. Akeem Lawal, chief technology & operations officer at Interswitch said it is imperative for industry stakeholders to determine the standards, rules, regulations and enforcement procedures for the management of the NCS before it commences operations. He maintained that interoperability and interconnectivity of payment scheme differs from country to country, depending on the history and development of the payment systems.
Lessons from other Countries
Nigeria CommunicationsWeek findings revealed that different country achieved interoperability and interconnectivity of their payment system in peculiar manners, depending on the history and growth of the system.
South Africa
The big four banks (Nedbank, absa, Standard Bank and First National Bank) have a central switch called BANKSERV through which they connect to VISA and MasterCard. The smaller banks either use BANKSERV or connect through local third party processors.
Canada
In Canada, there is a proliferation of different payment switches with direct interconnect amongst payment schemes
France
France operates a classic model of a central switch. All banks in the country connect to a central switch and card network known as Carte Bancaire. Most banks connect to VISA and MasterCard through this network while some banks connect directly.
United States
In the United States, there is a proliferation of payment schemes with bilateral interconnect agreements among them. No attempt has been made to implement a central switch.
In his own contribution, Mr. Adesola Adeyiga, head strategy and new business at eTranzact insist that the buy-in of all players is one of the critical factors for successful implementation of NCS. Other factors he listed include minimum standard for integration, regulation, dispute resolution management, across switch transactions settlement standard and transaction charges and fees.
Mr. Francis Ebuechi, CEO of Chams Switch, however, warned that NCS should not be seen as competing with existing switches. The roles for switches, issuers, financial institutions, Independent Service Operators (ISOs) and central switch should be clearly defined.
However, stakeholders at the conference were unhappy that NIBBS, the operators of the NCS were not present. “It is a shame that operators of the NCS who typically should be here to answer attendees’ questions in order to fuller understanding of the strategy, objectives and visions, were absent. An operator should be where its customers are and especially in a forum like this where your customers will be sitting. I think it is a big indictment on the part of that organisation”, head of E-Business of one of the big banks who was also at the meeting, said.
Federal government has inaugurated the Electronic Pharmacy Regulation Platform (E-Pharmacy) to enhance the safety of online healthcare services.
Pic credit….healthreporters.info
The platform, championed by the Pharmacy Council of Nigeria (PCN), is designed to regulate digital pharmaceutical services and improve public health outcomes.
Inaugurating the platform, Prof. Ali Pate, coordinating minister of Health and Social Welfare, said the initiative signified Nigeria’s commitment to building a world-class regulatory environment.
Pate noted that pharmacy regulation had faced significant challenges for over three decades but expressed optimism that the new platform would strengthen oversight and accountability.
He said the initiative would enable evidence-based monitoring of pharmaceutical practices while supporting innovation and investment in the health sector.
“This launch is a testament to our collective commitment to advancing technology in the service of health, safety and human dignity.
“It is a decisive step to ensure that pharmaceutical practice in Nigeria aligns with national and global health priorities, reflecting the realities of the 21st century.
“It enables the country to adopt evidence-based approaches to monitoring and protecting public health while supporting innovation and investment,” he said.
The minister added that the platform would help establish a safe, accessible and well-regulated national e-pharmacy ecosystem driven by digital technology.
Earlier, Alhaji Ibrahim Ahmed, registrar/chief executive officer of PCN, said the need to regulate online pharmacy operations became more urgent during the COVID-19 pandemic.
Ahmed said the pandemic accelerated the adoption of digital tools and e-commerce in healthcare, exposing longstanding inefficiencies in pharmaceutical supply chains, particularly in Africa and Nigeria.
“This has led to the increasing adoption of digitised distribution of essential medicines through cost-effective and technology-enabled models.
“For decades, PCN has regulated pharmacy education, training, practice and business in Nigeria. However, as the world shifts towards digital solutions, access to medicines has evolved.
“The Electronic Pharmacy Regulations 2026 provide a comprehensive legal and technical framework for the registration, licensing, operation and oversight of digital pharmaceutical services,” he said.
He added that the framework would ensure that ethical standards and patient safety are not compromised in the delivery of online pharmaceutical services.
Olugbenga Agboola, CEO, Flutterwave, has announced plans to establish Anambra State as the company’s hub for Nigeria’s South East, leveraging a fresh banking license from the Central Bank of Nigeria (CBN) to boost local fintech and businesses.
Flutterwave
Agboola made the disclosure yesterday in Awka during a meeting with Anambra tech community leaders, hosted alongside Dr. Stanley Uzochukwu, CEO, Stanel Group and proprietor, Delborough Hotel.
He highlighted Flutterwave’s status as Africa’s leading payment system, born in Nigeria, with infrastructure powering companies nationwide.
“We want Anambra to be our hub for the entire South East,” Agboola said. “We’ll deploy our systems, fees, infrastructure, and POS terminals to every small business and large firm here, making our services the top consumer choice.”
Agboola pledged a massive impact program for Anambra entrepreneurs to foster global platforms from the state, enabled by the new license for faster growth.
For a decade, Flutterwave has facilitated payments, but now aims to empower South East businesses through partnerships, POS access, loans, and value for SMEs.
“We’re partnering on a huge impact program launching soon—impacting the tech community with technology, financing, and lending to create more millionaires from this city,” he added.
The National Environmental Standards and Regulations Enforcement Agency (NESREA), in collaboration with the Africa Carbon Management Technology & Innovation (ACMTI) and the Clean Energy Ministerial Carbon Capture, Utilisation and Storage Initiative (CEM-CCUS), has launched a Carbon Capture, Utilisation and Storage (CCUS) Initiative Platform in Nigeria.
Speaking at the launch in Port Harcourt, Rivers State, Prof. Innocent Barikor, the Director-General of NESREA, described the project as a major milestone in Nigeria’s journey toward environmental sustainability, climate resilience, and industrial transformation.
Barikor explained that the CCUS solution provides an economically viable pathway for industrial decarbonisation by enabling the capture, storage, and utilisation of carbon in sectors such as beverage production, cement manufacturing, chemicals and fuels, enhanced oil recovery, and agriculture.
“We need to reduce carbon in the atmosphere to acceptable levels. Its utilisation offers opportunities to capture and store carbon and deploy it for industrial purposes. We are building a circular economy—turning environmental challenges into economic opportunities in line with regulatory provisions,” he said.
He noted that the CCUS Platform is a collaborative ecosystem designed to bring together key stakeholders, including government institutions, industry leaders, academia, technology developers, development partners, and investors.
Also speaking, the Vice-Chancellor of the University of Port Harcourt, Prof. Owunari Georgewill, commended NESREA for the initiative, describing it as a practical mechanism for coordination, innovation, and action toward Nigeria’s 2035 climate targets and broader energy transition goals.
He added that the university is well-positioned to host the CCUS initiative, noting that its Energy Technology Institute has developed credible expertise in energy transition-related fields critical to the success of CCUS in Nigeria.
On his part, the Coordinator of ACMTI and Facilitator of the Carbon Technology Innovation Platform (CTIP), Dr. Richard Victor Osu, said the vision is to position Nigeria as a regional leader in carbon management technologies while contributing meaningfully to Africa’s climate commitments and global decarbonisation efforts.
Osu explained that Port Harcourt was selected due to its potential as a CCUS hub, adding that the platform will focus on advancing research and innovation, building technical capacity, promoting public-private partnerships, attracting investment, and fostering collaboration with international research and technology partners.
Juho Lipponen of the CEM-CCUS Initiative assured that the organisation would support Nigeria in prioritising CCUS in clean energy discussions, strengthening carbon management deployment programmes, boosting partnerships, facilitating financing solutions, and promoting positive narratives around carbon utilisation.
The event attracted participants from the United States, France, Brazil, Canada, the United Arab Emirates, and the United Kingdom, who shared insights on the initiative.
Also in attendance were representatives of the National Oil Spill Detection and Response Agency (NOSDRA), the National Council on Climate Change (NCCC), the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), the Rivers State Ministry of Environment, as well as private sector stakeholders and development partners.
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