Limits and restrictions on transactions on the Pan-African Payment and Settlement System (PAPSS) has been removed by the Central Bank of Nigeria.
Hassan Mahmud, CBN’s director of trade and exchange department also disclosed that the amount to be paid quarterly, has also been removed.
It read;
“Following the recent liberalization of the Nigerian Foreign Exchange Market and the Central Bank of Nigeria (CBN) initiatives to boost foreign exchange inflows, particularly through the facilitation of intra-Africa continental trade, we hereby revise our Circular Ref-TED/FEM/PUB/FPC/01/005 issued on July 25, 2023, on the above subject.
“Removal of all restrictions and limits on Pan African Payment and Settlement System (PAPSS), including US$20,000 and US$200,000 quarterly limits per Individual and authorised dealer banks (ADBs), respectively.
“Removal of the restrictions of ‘only’ Trade backed and inwards transactions. ADBs are allowed to source for FX for settlement of PAPSS transactions through the Nigerian Foreign Exchange Market with no recourse to the CBN.
“All export proceeds repatriated under PAPSS shall be subject to certification by the respective processing banks.”
PAPSS is a cross-border financial market infrastructure enabling payment transactions across Africa, bridging trade challenges in a continent with over 41 known currencies.
