CBN limits transactions on PAPSS by dealer banks to $200,000

The Central Bank of Nigeria (CBN) has pegged the amount of dollars to be transacted on the Pan-African Payment and Settlement System (PAPSS), at $200,000 per quarter by authorised dealer bank (ADB) and $20,000 per quarter for a customer.

This was disclosed in a circular dated July 25, 2023, and signed by Ozoemena Nnaji, director of trade and exchange department of the CBN.

PAPSS is an international payment system and cross-border financial market infrastructure enabling remittance payment and trade between African countries.

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In June 2023, PAPSS signed a memorandum of understanding (MOU) with five African multinational commercial banking groups for seamless cross-border trade payments.

The banks include Access Bank Group, Ecobank Group, KCB Group, Standard Bank Group, and UBA Group. These significant partnerships aim to revolutionise the settlement of cross-border transactions across Africa, leveraging on the vast network of subsidiaries and representative offices across major economic centres across Africa.

These MOUs were signed on June 2023, at the opening ceremony of Afreximbank’s 30th anniversary and 30th annual meetings held in Accra, Ghana.

Mike Ogbalu III, chief executive officer of PAPSS, said, “these partnerships with Access Bank Group, Ecobank Group, KCB Group, Standard Bank Group, and UBA Group mark a significant milestone in the journey toward a more integrated and efficient African banking landscape.

By embracing PAPSS’ commercial bank settlement model, these banks are helping build a robust continental platform for fostering cross-border payments, thereby paving the way for financial inclusion and substantial continental economic development.”

These MOUs will be put into effect gradually in partnership with central banks in the countries where the five group banks operate. Customers of the banks in Africa will be informed through the usual channels of communication as soon as the service becomes available in their countries. PAPSS and the banks will be working towards making this service available towards year-end.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.