The Central Bank of Liberia (CBL), in collaboration with the International Finance Corporation (IFC), has convened the first National Payments Council (NPC) meeting in Monrovia on July 18, 2024.
The Council aims to promote cooperation, dialogue, and consensus among National Payment System participants, ensuring a cohesive strategy for the payment sector’s evolution in Liberia.
Key to this effort, the NPC will enable structured dialogue between market players, the CBL as the regulatory body, and various government entities, including the Liberia Telecommunication Authority and the Ministries of Posts and Telecommunications, and Finance and Development Planning.
The Council will regularly convene to discuss developments in the payment ecosystem, aligning progress with a shared vision for a robust financial framework.
During the meeting, the NPC Charter was officially introduced, and the Council’s leadership, along with various committees and working groups, were announced.
The CBL’s Executive Governor was named Chairperson, with a Ministry of Finance and Development Planning representative as Co-chair.
These entities are charged with leading strategic efforts vital to the payment system’s success. Participants were also briefed on the governance and operational structure of the NPC, preparing them to effectively support the Council’s goals.
Recalling past efforts, in September 2022, the IFC evaluated the Automated Clearing House (ACH) for its suitability in the Liberian market, leading to recommendations for market-level enhancements to boost ACH use and promote a self-regulating market.
The IFC’s involvement is part of the broader Digital Financial Services (DFS) Liberia project, a collaborative effort by the IFC and the World Bank aimed at refining financial and digital finance regulations and services in Liberia.
In addition to the assessment, the IFC aided in establishing the NPC’s structure and operations and continues to support the implementation and monitoring of market interventions, all contributing to an effective payment system integral to enhancing financial services for the underserved and vulnerable.
The Executive Governor, Aloysius Tarlue, lauded the participants for their dedication, innovative spirit, and drive towards digitizing Liberia’s financial system, emphasizing the imperative for Liberia, as Africa’s oldest independent nation, to keep pace with global advancements.
He also recognized the support from various donors, including the World Bank, African Development Bank, UNDP, and IFC, in the development of Liberia’s payment system.
“The collaborative framework of the NPC is a blueprint for innovation and progress in Liberia’s payment systems,” said Nuzhat Anwar, IFC Resident Representative for Liberia and Sierra Leone.
She added that the IFC’s support in this initiative, “reflects our ongoing dedication to improving access to financial services, thereby empowering businesses and individuals across the nation.”
This inaugural session brought together a broad spectrum of stakeholders from the public and private sectors involved in payment systems.
The NPC’s operational blueprint, the NPC Charter, received approval from the CBL’s Board of Governors on July 9, 2020.
The CBL was established in 1999, as the successor of the erstwhile National Bank of Liberia, as an independent monetary authority of Liberia.
The CBL has the statutory mandate of conducting the monetary of policy of Liberia, licensing, regulating and supervising bank- and non-bank financial institutions as well as oversee the Payments System Act of Liberia.
IFC, a member of the World Bank Group is the largest global development institution focused on the private sector in emerging markets.
The group works in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries.
In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises.
