BY Babajide Komolafe
Banks and electronic payment switch operators have shunned the Nigeria Central Switch (NCS) by refusing to route their e-payment transactions through the facility as directed by the Central Bank of Nigeria (CBN), thus making the facility dormant.

Managing Director, Nigeria Inter-Bank Settlement System (NIBBS), operator of NCS, Mr. Paul Lawal, during the monthly Information Value Chain (IVC) breakfast forum organised by Digital Jewels in Lagos, said the NCS’ purpose is to facilitate inter-connectivity and interoperability of electronic financial transaction switching in Nigeria.

According to Lawal, the Central Switch is supposed to serve as the national gateway for payment services in the country, adding that the CBN’s directive was that each bank should connect to the switch and other switches of choice.

However, Lawal lamented that, though all the banks and the payment switches in the country, such as Interswitch, were already connected to the Central Switch, they have not activated their lines. This, according to him, means that the banks have subscribed to the central switch but have to make use of its services, thereby making it somewhat dormant.

Lawal said as at today the banks are connected to NCS. “All switches are also connected to the central switch, but many of them have yet to go live. It is like when you buy a SIM card and you put it in your phone, you cannot start making calls until the network provider activates your card.

“This means that communication from that card will be routed through the network. As at now, they are all connected.  They are all tested. They can all work tomorrow morning, but many have not activated those lines.”

He says that the apathy towards the central switch might be because of the fear of changes on the part of all stakeholders. He, however, argued that the NCS was an enabler and not an inhibitor.

“The vision of the central switch is to achieve greater financial inclusion through a cashless economy, where the consumer can get instant services at very low rates because the centralised system has reduced costs, minimises financial wastes and significantly improves efficiency of industry targeted e-Payment schemes,” he adds.