NIGERIA Law and Practice Contributed by: Isa Alade, Seyi Bella, Ayodele Adeyemi-Faboya and Ayomikun Ogunkanmi, Banwo & Ighodalo
lenders. A facility agent is also appointed to col - lect interests and repayments from the borrower and distribute them to the syndicate, as well as monitor the borrower’s financial covenants and administer waivers and amendments to the loan documentation. From time to time, syndicated loans are also subject to prudential guidelines prescribed by the CBN.
Guidelines were issued to complement the then-subsisting IMTS Guidelines by facilitating foreign exchange transactions through mobile applications. The PAPSS Guidelines were issued with the objective of regulating cross-border payments within the African Continental Free Trade Agree - ment framework. The PAPSS Guidelines con - tained various limitations, such as transaction limits, which only apply to trade-backed and inward transactions. The PAPSS Guidelines were aimed at enabling innovation in cross-bor - der trade and access to new markets, thereby providing a simple process that reduces the complexities and costs of foreign exchange for cross-border transactions between African mar - kets and secures instant cross-border payment capabilities to their customers all over Africa. Interestingly, by a letter dated March 2024, the CBN removed the transaction limits on PAPSS for trade and payment services and permitted authorised dealer banks to source for foreign exchange for settlement of PAPSS transactions through the Nigerian Foreign Exchange Market with no recourse to the CBN. 6. Marketplaces, Exchanges and Trading Platforms 6.1 Permissible Trading Platforms The applicable and permissible platforms for trading securities in Nigeria depend on the type of security intended to be listed. The current trading platforms permissible for debt securities are the NGX and the FMDQ Securities Exchange Limited (FMDQ). Equity securities can be traded publicly on the NASD Plc (NASD OTC Securities Exchange) and NGX, whereas commodities can be traded on the AFEX Commodities Exchange Limited, the Lagos Commodities and Futures
5. Payment Processors 5.1 Payment Processors’ Use of Payment Rails
Payment processors and payment gateways in Nigeria often operate within existing payment rails established by the CBN, such as the Real Time Gross Settlement System. Within this sys - tem, payment processors and payment gate - ways (acting through settlement banks) can provide an avenue for real-time processing and settlement of transactions undertaken between customers and merchants. 5.2 Regulation of Cross-Border Payments and Remittances CBN regulates cross-border payments and remittances. It also issues licences to organisa - tions seeking to provide such services in Nigeria. The most relevant regulations in this respect are the Pan African Payment and Settlement Sys - tems (PAPPS) Guidelines (the “Reviewed IMTS Guidelines” ) and the Guidelines on International Mobile Money Remittance Services (the “IMMRS Guidelines” ). Specifically, the reviewed IMTS Guidelines pro - vide minimum standards and requirements for IMTOs, specify delivery channels for such mon - ey transfer operations and provide guidelines for implementing processes and flows of inter - national money transfer services. The IMMRS
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