CBN Revises Regulation for Direct Debit Scheme


In the exercise of the powers conferred on the Central Bank of Nigeria (CBN) under Sections 2(d), 33 (1)(b) and 47(2) of the CBN Act 2007 to promote sound financial system in Nigeria, issue guidelines and facilitate the development of an efficient and effective payments system in Nigeria, the CBN hereby issues this Regulation for Direct Debits Schemes in Nigeria, 2017.

This Regulation recognizes the existing and emerging multi-channel options (Online platforms, Instant Payments etc.) applied for direct debit instructions in Nigeria. In addition, the provisions of this Regulation are harmonized with developments in the payments system since the release of the previous version.

Direct debit is a cash-less form of financial settlement which facilitates recurring payments. It permits the originator of the instruction, known as ’’Biller’’, to collect amounts due from a payer through the Payer’s bank by leveraging an instruction or mandate provided by the payer. An entity wishing to participate as a Biller in the Direct Debit scheme will typically contact its bank or payment service provider. The service may be deployed on channels provided by the Biller through its bank or Payment Service Provider.


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