NIBSS introduces direct debit management system
A new management program has been introduced by Nigeria Inter-Bank Settlement System (NIBSS) that will enable banks and utilities providers to process direct debits more efficiently.The Central Mandate Management System will give companies such as insurance and premium television providers the ability to deal with direct debit bill payments from subscribers easily, the Daily Trust reports.
It has been launched alongside the Central Bank of Nigeria's initiative to improve trust in direct debit payments among the country's public.
In a statement, NIBSS - which is equally owned by all of Nigeria's licensed banks and chaired by the Central Bank of Nigeria - said "all the 24 deposit money banks [in Nigeria] have accepted the Central Mandate Management System".
Managing Director at NIBSS Paul Lawal added it will "reduce the high rejection rates currently characterising the present paper-based mandate system".
The problems associated with the present setup have "discouraged" businesses from offering consumers further post-payment options, he added.