CBN removes limit on PAPSS payment services

The Central Bank of Nigeria, CBN, has removed limits placed on trade and payment services transactions on the Pan African Payment and Settlement System, PAPSS.

The CBN disclosed this in a circular signed by Hassan Mahmud, director of the trade and exchange department.

This followed the recent liberalisation of the Nigerian Foreign Exchange Market, in line with CBN’s initiatives to boost foreign exchange inflows, particularly through the facilitation of intra-Africa continental trade.

The circular reads: “We hereby revise our Circular – RefTEO/FEM/PUB/FPC/011005 issued on July 25, 2023, on the above subject, as follows: removal of ail restrictions and limits on Pan African Payment and Settlement System including US$20,000 and US$200,000 quarterly limits per Individuals and Authorised Dealer Banks (ADBs), respectively, removal of the restrictions of ‘ONLY’ trade backed and inwards transactions.”

In July 2023, the apex bank pegged the amount of dollars to be transacted on the PAPSS at $200,000 per quarter by authorised dealer bank, ADB, and $20,000 per quarter for a customer.

PAPSS is a cross-border financial market infrastructure enabling payment transactions across Africa.

In the last two months, the Central Bank of Nigeria has implemented several policies to strengthen the Naira and the Nigerian economy.