In a circular released last week, the Central Bank of Nigeria (CBN) extended the scope of settlement banks in the country. Settlement of net clearing obligations arising from the Central Securities Clearing System (CSCS), Cheques, Cards, National Electronic Fund Transfer (NEFT), Automated Clearing House ACH, NIBSS Instant Payment ( NIIP) shall be through the account of settlement banks only.
Settlement banks are expected to update their agency agreements with non settlement banks. Merchant banks, that don’t have a settlement bank are expected to appoint a settlement bank and inform the CBN with a copy of the letter from the settlement bank, accepting tos settle them.
Here is a copy of the circular.