With eight months to the deadline, banks are already gearing up for compliance with the new uniform accounting system recently introduced by the Central Bank of Nigeria (CBN).

In a circular issued to the 24 commercial banks by the banking and payment system department of the CBN and dated July 14, the banks were given a nine month compliance period to migrate to the new system, which ends on April 2011.

To be known as the Nigerian Uniform Bank Account Number (NUBAN) system, the aim is to standardise account numbers in banks in order to eliminate delays that come with filling wrong account numbers for clearance.

Under the new format, every bank is required to create and maintain a NUBAN code for every customer account in its customer records database, which should be the only account number to be used at all interfaces with a bank customer. The Central Bank said the new format is in line with international best practice and is expected to enhance the e-payment system.

“We expect every bank to maintain their present account numbers and use them for their internal operations only as from the effective date of NUBAN, but every such account number would have to be mapped to a NUBAN code as an alternate account number,” the bank said in the circular. The new number format will comprise 13 digits which includes the three-digit bank code and a 10-digit NUBAN code.

Banks’ compliance

Moshood Isamotu, Afribank spokesperson, said the bank had put in place modalities to meet the deadline. “We have started implementing, even though we have a nine month period. Our technology platform is flexible and can accommodate such change,” he said. He added that Afribank would comply with the CBN directive and begin to issue compliant account numbers to its customers as soon as possible.

Frank Barde, head of corporate affairs of Union Bank of Nigeria Plc, said the bank was still studying the directive and would ensure that its customers are carried along. “We have nine months to comply. We will look at the document and follow up as directed by the CBN,” he Barde said. Intercontinental Bank on its part said the deadline period gives it enough time to ensure compliance. “We are understudying and looking at the implementation within the timeline given by the central bank,” said a source in the bank who spoke off record.

Migration

The Central Bank said banks are to submit their comprehensive migration plan to the new system one month from the release of the circular. Compliance monitoring will commence six months from the release of the circular. “Any infractions to the dictates and stringent timelines provided in this document shall attract severe sanctions as may be determined by the Central Bank of Nigeria from time to time,” the circular stated.

The bank noted that the upsurge in automated direct credit was as a result of the January 2009 directive that all ministries, departments, and agencies should replace all forms of cheque payments with electronic payments, hence the need to adopt a new cheque number system to make clearing and settlements of cheques less cumbersome.

“As the Automated Clearing House volume increased, so have complaints of banks and bank customers resulting from the incidents of abuse of the clearing system.”

The Central Bank said the change would enable Nigeria to fully comply with the 10-digit Account Number structure required by the West Africa Monetary Institute (WAMI) towards the economic integration of ECOWAS countries.