CBN removes limit on PAPSS for trade payment services

The Central Bank of Nigeria (CBN) has removed limits placed on trade and payment services transactions on the Pan African Payment and Settlement System (PAPSS).

PAPSS is a cross-border, financial market infrastructure enabling payment transactions across Africa.

The CBN disclosed this in a circular signed by Hassan Mahmud, director, trade and exchange department.

This followed the recent liberalzation of the Nigerian Foreign Exchange Market and the CBN initiatives to boost foreign exchange inflows, particularly through the facilitation of intra-Africa continental trade.

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In July 2023, the apex bank pegged the amount of dollars to be transacted on the PAPSS at $200,000 per quarter by authorised dealer bank (ADB) and $20,000 per quarter for a customer.

“We hereby revise our Circular – RefTEO/FEM/PUB/FPC/011005 issued on July 25, 2023, on the above subject, as follows: removal of ail 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.

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 repatriation under PASS shall be subject to certification by the respective processing banks, and all documentation requirements stipulated in the CBN foreign exchange manual and extant circulars shall continue to apply.

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.