CBN Lifts the PAPSS Trade Payment Services Cap

CBN Lifts the PAPSS Trade Payment Services Cap
CBN headquarters

Limits on trade and payment services transactions on the Pan African Payment and Settlement System (PAPSS) have been lifted by the Central Bank of Nigeria (CBN).

Payment transfers throughout Africa are made possible by the cross-border financial market infrastructure known as PAPSS.

This was revealed by the CBN in a circular that the director of the trade and exchange department, Hassan Mahmud, signed.

This came after the CBN’s efforts to increase foreign exchange inflows, especially by facilitating intra-African commerce, and the recent liberalisation of the Nigerian foreign exchange market.

The amount of money that can be traded on the PAPSS is set by the apex bank in July 2023 at $200,000 for authorised dealer banks (ADB) and $20,000 for customers per quarter.

“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 the Pan African Payment and Settlement System, including US$20,000 and US$200,000 quarterly limits per Individuals and Authorised Dealer Banks (ADBs), respectively, and removal of restrictions on ‘ONLY’ trade-backed and inwards transactions.

With no need to turn to the CBN, ADBs are permitted to source foreign exchange for PAPSS transaction settlement through the Nigerian Foreign Exchange Market.

The export proceeds repatriation process under PASS is contingent upon certification by the corresponding processing banks. The CBN foreign exchange manual and current circulars’ documentation requirements will remain applicable.

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