The Central Bank of Nigeria (CBN) has eliminated transaction limits on trade and payment services via the Pan African Payment and Settlement System (PAPSS). This decision, outlined in a circular signed by Hassan Mahmud, Director of the Trade and Exchange Department, follows the recent liberalization of the Nigerian Foreign Exchange Market. It aligns with the CBN’s initiatives aimed at enhancing foreign exchange inflows, particularly by facilitating intra-African continental trade.
The circular 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 the Pan African Payment and Settlement System, including the previous US$20,000 and US$200,000 quarterly limits per Individuals and Authorised Dealer Banks (ADBs), respectively. Additionally, the restrictions of ‘ONLY’ trade backed and inwards transactions are also removed.”
In July 2023, the apex bank had set the transaction limit for dollars on the PAPSS at $200,000 per quarter for authorized dealer banks (ADBs) and $20,000 per quarter for customers.
PAPSS serves as a cross-border financial market infrastructure facilitating payment transactions across Africa. Over the past two months, the Central Bank of Nigeria has introduced several policies to fortify the Naira and bolster the Nigerian economy.
