CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND OF THE STUDY

An information system (IS) can be viewed essentially as a social system with some technological elements (Land, 1994; Soriyan, et al. 2001). This indicates a shift from an initial techno-centric focus to a more integrated technology, management, organization and social focus (Elliot and Avison, 2005). It also emphasizes the application of technologies and the interactions between people and organizations and the technology. These interactions, the processes or order needed and the governance structure based on defined regulatory framework for the interactions, may be significant in the application of technologies and economic activities (North, 1991). This study views these interactions, governance structure and regulatory framework as institutional arrangements (North, 1991), and examines their contributions or limitations in the development of Electronic Payments System (EPS).

Nigeria payment system has been predominantly cash-based for both positive and negative reasons: positive because of its instant convertibility to other forms of value without intermediation of any financial institution and negative because of its anonymity and un-traceability in unethical transactions. Electronic payment was introduced because government was inundated with allegations of corruption in the Federal Civil Service. The Federal Government through its treasury circular reference No TRY/A8 & B8/2008 of 22nd October, 2008 directed that payments from all funds from it be made electronically as from 1st January, 2009. The policy has been condemned by all and sundry for lack of planning, inefficiencies and delay in the payment for goods and services, hence this article extends and contributes to the body of knowledge to assess the implementation and constraints of the system with a view to proffering solutions to them.