CBN approves Payment Service Banks to sell Dollars

Nigeria to pay foreign debts before other obligations

The Central of Nigeria (CBN) last week approved the sale of dollars by Payment Service Banks (PSB).

This was contained in a supervisory framework for payment service banks released on the apex bank’s official website. PSB operators were given approval to sell foreign currencies, especially dollars, to authorised foreign exchange dealers among other items approved in the framework.

Other approvals given to the PSBs, include accepting deposits from individuals and small businesses, which shall be covered by the deposit insurance scheme; carry out payments and remittances (including inbound cross-border personal remittances) services through various channels within Nigeria.

The framework also provides for the unbanked population as it requires operators to leverage on technology to provide services that would be easily accessed by people in hard-to- reach areas of the country.

According to the apex bank, PSBs are to operate mostly in the rural areas and unbanked locations targeting financially excluded persons.

The CBN has also in the framework, given approval to PSBs to roll out agent networks with the prior approval of the apex bank.

Authorisation was also given to the PSBs to enter into direct partnership with card scheme operators to issue debit and pre-paid cards on its name which shall not be eligible for foreign currency transactions. They can also deploy Automated Teller Machines and Point of Sales devices in some of these areas.

PSBs are also authorised to operate electronic wallet and invest in Federal Government of Nigeria and CBN securities while also providing financial advisory services.

They are required to comply with relevant extant regulations and CBN’s guidelines which are issued periodically.

The framework provides guidelines on safety of consumers’ funds, corporate governance and risk management of the PSBs.


Author: Greg