Abstract
In January 2012, the Nigeria Apex Bank, Central Bank of Nigeria (CBN) rolled out guidelines for the transition of Nigeria’s mainly cash-based economy and payment system to cashless and electronic payment (e-payment) system ending over 50 years of mainly cash-based operated economy and payment system. This announcement elicited mixed reactions firstly excitement due to the enormous benefits this transition will impact on Nigeria economy and at the same time elicited panic due to unpreparedness of the economy to transit successfully to electronic payment in a system hitherto filled with bobby trap of security challenges. Ten months later after the introduction of the policy, only a handful of the major stakeholders are fully compliant mainly because of the complexity and the high prohibitive cost of implementation of CBN adopted security framework, the Payment Card Industry Data Security Standard (PCI DSS). This paper surveys the security challenges facing the full implementation of the cashless epayment policy of Nigeria and at the end introduced an enhanced modified security framework for Nigeria’s cashless economy that may be easier and cheaper to implement by the majority of the stakeholders after studying the loopholes in the current Nigeria epayment system models.
Highlights
In January 2012, Central Bank of Nigeria (CBN), the Nigerian apex bank rolled out guidelines for the switching of Nigeria’s payment system which was hitherto largely cashbased to cashless and electronic payment system
The investigations have shown that the security models of an epayment system must be studied and understood before a data security framework is adopted for it
This study have revealed why the CBN adopted data security framework, the Payment Card Industry Data Security Standard (PCI DSS), failed to attract wide acceptability and compliance in Nigeria’s epayment system
Summary
In January 2012, Central Bank of Nigeria (CBN), the Nigerian apex bank rolled out guidelines for the switching of Nigeria’s payment system which was hitherto largely cashbased to cashless and electronic payment system. This cost is highly prohibitive in Nigeria; only commercial banks and perhaps the electronic payment switching companies can afford this cost. Apart www.ijacsa.thesai.org (IJACSA) International Journal of Advanced Computer Science and Applications, Vol 3No. 11, 2012 from the cost of implementation and maintenance, it costs additional expenses for a merchant or any other stakeholder to send his/her staff for training on how to implement PCI DSS Another major reason for non-compliance to PCI DSS in Nigeria is the issue of complexity of implementation. It was argued that fines were imposed by the originators on merchants even where there was not clear case of fraud, that the real intentions of the PCI DSS originators is to make profits from fines they impose on merchants[4]
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