The Central Bank of Nigeria (CBN) has announced the removal of limits on trade and payment services transactions on the Pan African Payment and Settlement System (PAPSS), marking a significant stride in enhancing intra-African trade.
In a circular signed by Hassan Mahmud, Director of the Trade and Exchange Department, the CBN disclosed the decision, citing recent measures to liberalize the Nigerian Foreign Exchange Market. This move aligns with the CBN’s broader initiatives aimed at bolstering foreign exchange inflows and fostering trade within the African continent.
The circular, which revises a previous directive issued in July 2023, states: “We hereby revise our Circular – RefTEO/FEM/PUB/FPC/011005 issued on July 25, 2023, on the above subject, as follows: removal of all 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.”
Previously, the CBN had imposed restrictions on transactions conducted through the PAPSS, limiting authorised dealer banks (ADBs) to transact $200,000 per quarter and individual customers to $20,000 per quarter.
The Pan African Payment and Settlement System (PAPSS) serves as a crucial cross-border financial market infrastructure, facilitating payment transactions across the African continent.
