27 November 2009
analysis
Eleven months after the Federal government introduced the electronic payment system in all the Ministries, Departments and Agencies, Nigerians are yet to feel its advantage over the manual payment system it sought to replace.
It has been tales of delay payments and people are asking questions. Government said it is aware of the limitations of the system and has promise to seek lasting solution to it. This prompted the government to issue directives on the need for stakeholders to work together for a viable solution to the problems.
Many Nigerians have attributed delay in the payment of salaries and other forms of expenditure by the Federal Government such as execution of contracts to the new method of payment.
While acknowledging the limitations and problems associated with the e-payment, government still maintains that the system is better than the manual payment system.
E-payment is simply an electronic method of transferring funds rather than the usual way of carrying large sums of money that may lead to misappropriation.
It is a system that sought to eliminate problems associated with physical cash distribution. Technology for the payment system is permanent if properly managed by the operators and relevant government institutions.
The perceived gains and constraints of the system have prompted the proposed special legislative briefing and round table on Cyber Security Strategy organized by the National Assembly Anti Money Laundering and Cyber Security Coalition in conjunction with the Policy Analyses and Research Project (PARP). To make the briefing all inclusive, Federal Ministry of Finance and the Office of the Accountant General of the Federation (AGF) are involved too.
The theme of the conference, "Implementing the federal E-payment programme within safe and survivable environment," is to draw attention of the reality of the danger ahead of the new financial strategy if the cyber environment is not secured.
Participants at the legislative briefing will be drawn from the financial sector, the legislature, policy framework implementers and operators of the telecoms industry, believing that experts on the e-payment system would educate Nigerians on why the endorsed new method of payment is superior in the context of a corrupt nation, like ours.
Internet fraud in the country has caused so much damage to corporate organizations and individuals who have fallen victims of hackers especially through Mobile Telecommunication Networks over the years.
The Executive vice chairman of the Nigeria Communication Commission (NCC) Ernest Ndukwe, had at various fora, expressed confidence on the operators of the GSM in Nigeria. But as a regulator body in the industry, the commission is yet to convince the public that internet fraudsters have no collaborations with Mobile Networks.
The Accountant General of the Federation (AGF) Ibrahim Dankwabo, is expected to shed more light on what the e-payment system is all about and the success of its implementation within the confines of the Federal Ministries, Departments and Agencies during a two-day event slated for December 7 and 8.
The Accountant General Office is a major player in the implementation process of the e-payment system. The e-payment system was actually launched by the Accountant General of the Federation in January where he said that the concept was introduced by the Federal Government to reduce corruption in a public service with a view to achieving international best practices.
Commercial banks and the Central Bank of Nigeria (CBN) are the institutions responsible for the needed perfection in the e-payment system, which is presumed to be a veritable means of managing public funds.
Unfortunately, there is no enabling law to back up the implementation of the new federal payment system to guarantee and prescribe penalty for various attempts to sabotage the process of realizing needed results.
For a system like e-payment to succeed, it is economically and politically expedient to put in place a legal framework that will serve to protect the system within the context of the increasing wave of cyber crime.
The growth of information and communication technology in Nigeria started with the liberalization of the telecommunication sector. It opened up the markets for GSM operators and brought about competition in the sector.
Though it is lamentable that most rural communities do not have banks or micro finance located in their areas, even GSM network are lacking in some rural areas, this may constitute problems in the transfer of local funds.
The proposed legislative briefing will assemble speakers from the financial and telecom sectors to educate Nigerians on the success of the new federal payment system where issues of competence and failure shall be raised by Nigerians and solutions proffered to the effective implementation of the e-payment system.
It was learnt that experts in the two sectors as well as related areas of operation shall be on hand to create more awareness on questions bothering on the protection of our cyber environment for the sustainability of the electronic payment. It is hoped that this kind of workshop will educate operators so that delay presently noticed could be reduce to minimum.
The National Assembly Anti Money Laundering and Cyber Security Coalition has already commenced the process of enacting a cyber security law that will address all forms of internet crimes in the country permanently and Nigerians are eager to see the light of such a law soon.
The coordinator of the coalition Hon. Bassey Etim who is also deputy chairman House of Representatives Committee on Drugs, Narcotics and Financial Crimes, told journalists recently that there has to be a law on cyber security with the hope of establishing a cyber security commission in the nearest future.
He expressed fear over inadequate infrastructure to implement the e-payment system.
"In order to restore sanity, the National Assembly in the spirit of service to the nation is putting in place adequate legislative processes to combat cyber crime and other related ITC offences. This has also informed our resolve to continue to partner with major stakeholders to organize conferences and proffer lasting solution to some of the constraints associated with the deep economic sabotage", he said.
While the e-payment system is capable of preventing misappropriation of funds and reduce corruption, there are attendant negative implications where internet fraud is concern.
There is little doubt that cyber offences constitute threat to the new system and other investment opportunities in the industrial sector. Multi-nationals are scared of going into transactions electronically with Nigerians who are supposed to be partners in the sector.
The government should find a viable solution to the problems associated with e-payment as it is set to mark its one year anniversary.
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