Enhancing the support structure for

e-Governance

Presented by Rasheed Adegoke

@NCS Lagos IT Conference

Setting the stage…

Governance of E-Services

E-commerce

E-Governance

E-Government

Enhancing the support structure for e-Governance

E-commerce & E-Financial

services

PRESENTATION OUTLINE

� DEFINITIONS

� BUSINESS ARCHITECTURES FOR E-GOVERNMENT, E-COMMERCE AND ELECTRONIC FINANCIAL SERVICES

� FOCUS ON E-FINANCIAL SERVICES & THE CBN CASHLITE INITIATIVE

� GOVERNANCE STRUCTURE FOR E-COMMERCE, E-FINANCIAL SERVICES AND E-GOVERNMENT

� ENHANCING THE GOVERNANCE STRUCTURE & A ROLE FOR NCS

DEFINITIONSDEFINITIONS

DEFINITIONS

� E-Governance� the series or collection of activities, practices, policies and systems

that ensures successful application, usage and monitoring of ICT (Information & Communication Technology) within government and the public space

� E-Government� the application of ICT for delivering government services, exchange � the application of ICT for delivering government services, exchange

of information, integration of various stand-alone systems and services between government-to-customer (G2C), government-to-business (G2B), government-to-government (G2G) as well as back office processes and interactions within the entire government framework

� E-Commerce� trading in goods or services using virtual channels based on ICT

platforms such as Internet/Web, Mobile, EFT/e-Payment, etc.

BUSINESS ARCHITECTURES BUSINESS ARCHITECTURES

FOR E-GOVERNMENT, ETC

E-GOVERNMENT ARCHITECTURE

G2G

G2G

Central Government (FG)

BusinessesNGOs

Civil Society

G2BG2C

G2G

Local Government (SG/LG)

Citizens

Employees

G2E

E-COMMERCE ARCHITECTURE

E-FINANCIAL SERVICES ARCHITECTURE

Source: Virmati product brochure

FOCUS ON E-FINANCIAL SERVICES FOCUS ON E-FINANCIAL SERVICES

& THE CBN CASHLITE INITIATIVE

KEY ELEMENTS OF CASHLITE POLICY

OBJECTIVEOBJECTIVE

To drive development and modernization of our payment system

POLICY ACTIONSPOLICY

ACTIONS

Only CIT licensed companies is allowed to provide cash pick-

up services

SCOPE & LIMITS

SCOPE & LIMITS

The cash-policy applies to all accounts with

exception to Government revenue

ENVISAGED BENEFITS

ENVISAGED BENEFITS

For Consumers: Increased convenience; more service options;

reduced risk of cash-related crimes; cheaper access to

our payment system

To reduce the cost of banking services and

drive financial inclusion

To improve the effectiveness of

monetary policy in managing inflation and

driving economic growth

to provide cash pick-up services

3rd party chequesabove N150, 000 shall

not be eligible for encashment over the

counter

Fresh drive to improve security of online

transfer services and drive adoption

Government revenue generation account, Primary Mortgage

Institutions, Microfinance Banks and Embassies.

Cumulative daily cash withdrawals limits of

500,000 for Individuals and N3,000,000 for Corporate bodies.

Deposit limits have been removed.

reduced risk of cash-related crimes; cheaper access to (out-of-branch) banking

services, access to credit and financial inclusion.

For Corporations: Faster access to capital; reduced revenue leakage; and reduced cash handling

costs.

For Government:

Increased tax collections; greater financial inclusion;

increased economic development. Increased tax collections; greater financial

inclusion; increased economic development.

INTERIM GAINS OF CASHLITE DRIVE

Improvement of bank

Faster pace of POS penetration as merchants avoid cash deposit and cash-in-transit charges

Significant growth in migration of consumers to

non-cash channels for payments especially NIP

and POS

Improvement of bank services as efforts are

deployed to make electronic platforms more stable and scalable while

also reducing pressures on branch channels

GOVERNANCE STRUCTURE FOR E-GOVERNANCE STRUCTURE FOR E-

GOVERNMENT & E-COMMERCE

CURRENT POLICY FRAMEWORKS• Computer Security and Critical Information Infrastructure Protection Bill 2005 (Executive)

• The Cyber Security and Data Protection Agency (Establishment, etc) Bill 2008 (Hon. Bassey Etim)

• The Electronic Fraud Prohibition Bill 2008 (Senator Ayo Arise)

• The Nigeria Computer Security and Protection Agency Bill 2009 (Executive)

• The Computer Misuse Bill 2009 (Senator Wilson Ake)

• The Economic and Financial Crimes Commission Act (Amendment) Bill 2010 (Hon. AbubakarShehu Bunu’)

HarmonisedCybersecurityBill 2011

• Stipulates guidelines and standards, to address issues relating to technology solutions deployed to support e-banking services, and ensure that they meet the needs of consumers, the economy and international best practice in the areas of communication, hardware, software and security

• Recently released transaction limits for electronic banking channels based on level of implemented security features

CBN E-Banking Guidelines

•Regulatory framework addresses business rules governing the operation of mobile payment services in Nigeria.

• It specifies basic functionalities expected of any mobile payment service and solution in Nigeria.

• It sets the basis for regulation of mobile payments services offered at different levels and by diverse participants.

CBN Mobile Payments Guidelines

• Provides the framework for the adopted Information Technology (IT) Standards and Governance for the Nigerian Financial Services Industry and stipulates standards (with roadmap for compliance) for Data Centres (TIA 942), Business continuity (ISO22301/25999), IT Security (ISO 27001/2), IT Governance (COBIT, ISO38500), IT Service Management (ISO 20000), IT Solutions Development (CMMi, PMBok/Prince2), Systems Interfaces (ISO 8583, ISO 20022), etc.

CBN IT Standards Blueprint

•Recognition of electronic communication and admissibility of electronically generated evidence

Evidence Act 2011

• Establishment of the EFCC with responsibilities for investigation, coordination and adoption of measures to prevent or curb crimes related to money laundering, advanced fee fraud, counterfeiting, computer & credit card fraud, futures market fraud, fraudulent encashment of negotiable instruments, contract scam, etc.

Electronic & Financial Crimes Commission Act

CURRENT ENABLING INFRASTRUCTURE

Payment Infrastructure

Payment Infrastructure

NIBSS (National Switch and POS Transaction

Aggregator)

Banking Industry Shared

Service initiative

Banking Industry Shared

Service initiative

Good progress in shared payment

infrastructure and improvements in cash

Government IT Shared Service

(Galaxy Backbone)

Government IT Shared Service

(Galaxy Backbone)

Good conceptual framework but needs policy instrument to

compel usage by various

Growing middle class & Youth

population with Online affinity

Growing middle class & Youth

population with Online affinity

E-Commerce

Interswitch (Payment switching)

CBN RTGS (RealtimeGross Settlement

System)

Other payment switches and

transaction aggregators

infrastructure and improvements in cash

management/ distribution

infrastructure

Ongoing work on shared services for

Data centers/Disaster

Recovery, Power and Network

infrastructure

compel usage by various government agencies

who are still interested in “owning IT

procurement”

Need to invest in skills and infrastructure to enable Galaxy play its

role

E-Commerce explosion

Citizen Journalism

Crowd sourcing

Cloud Services and Online Content

Generation

ANALYSIS OF CYBERSECURITY LAW

Coverage

• provide an effective, unified and comprehensive legal framework for the prohibition, prevention, detection, prosecution and punishment of cybercrimes in Nigeria

Challenges/Gaps

• Key cybersecurity bill NOT yet passed into law

• Gaps still exist in the provisions as coverage is not given to issues relating to adoption of cloud services including data sovereignty and

• Enhance cybersecurity and the protection of computer systems and networks, electronic communications; data and computer programs, Intellectual property and privacy rights

services including data sovereignty and ownership of data/content or liability of content authors e.g. for citizens participating in e-journalism

• Untested electronic evidence act (many do not even know it exists)

ANALYSIS OF CBN E-GUIDELINES

Coverage

• Broad coverage including major channels within scope

• Provide guidance on process standards,

Challenges/Gaps

• Structure and capacity for monitoring and enforcement of standards compliance

• Awareness amongst user community for • Provide guidance on process standards, governance practices and interfaces for interchange of information

• Provide guidance on security and business continuity standards to be complied with by banks

• Awareness amongst user community for appropriate use and safeguard especially against phishing and other social engineering attacks

• Cooperation with NCC and other telecomms regulators to facilitate coordinated policies across industries

OTHER OPPORTUNITIES & CHALLENGES

Opportunities

• Adoption of SFIA (Skills Framework for the Information Age) as reference for IT skills development within FSI provides a good foundation for standardizing continuing education curriculum

Challenges/Issues

• Growing skills gap in key areas of the ICT sector as more people move towards operations & support and drift away from development continuing education curriculum

for IT professionals

• Improved collaboration between the Town (business/practitioners) and the Gown (academia) to create an enduring supply stream for industry while also facilitating sustainable funding for academia

drift away from development and technical innovation

• Poor linkage between theoretical foundations in academic curricula and skills requirement for the business environment

ENHANCING E-GOVERNANCE ENHANCING E-GOVERNANCE

STRUCTURE & A ROLE FOR NCS

KEY ACTIONS REQUIRED AND NCS’ ROLE

Action Category

Key Stakeholders Actions

Close legislative gaps• National Assembly• NCS• CBN, EFCC, NCC

� Create a power lobby to facilitate the speedy passing into law of the relevant legislative instruments especially the harmonisedcybersecurity law (updated to cater for cloud, data ownership/sovereighty, etc)

� Aligning CE programmes with relevant skills

Pushing E-Government adoption

• NCS• Ministry of CommTech• Consumer Protection Agency

• Citizens

� NCS should lead advocacy and lobby to drive key Government services online to eliminate bottlenecks and increase citizens access/ satisfaction (registration {land, birth, death, etc}, licensing, revenue payments, etc)

Skills gap within industry

• NCS• CBN (FSI skills framework)

• Universities/Polytechnics• IT Service Providers

� Aligning CE programmes with relevant skills framework (e.g. SFIA)

� Work with academia on curriculum updates� Incorporate non-technical IT Leadership

contents into NCS CE curriculum and build training capacity for IT Governance, ISO standards, etc.

OTHER ROLES FOR NCS

Action Category

Key Stakeholders Actions

Improving collaboration with CBN, Ministry of CommTech on key initiatives

•NCS• CBN• Ministry of CommTech

� Collaborate with CBN towards better implementation of IT standards in banks

� Collaborate with Ministry of CommTech in key initiatives such as Techlaunchpad and Demo Africa

Champion greater participation by industry IT practitioners in NCS

• NCS

� Facilitate creation of professional special interest groups or forum (e.g. CIO Forum, Financial Services Forum, Telecommunication Forum, Data Center Management SIG, etc)