CBN removes limits on PAPSS for trade payment services

However, in the latest circular, the CBN said all limits and
restrictions on PAPSS, including the amount to be paid quarterly, have been
removed.

“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,” the circular reads.

 “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.”

The apex bank also said all documentation requirements
stipulated in the foreign exchange manual and extant circulars will continue to
apply.