A circular signed by Hassan Mahmud, the director of the trade and exchange department, revealed that the Central Bank of Nigeria (CBN) has eliminated restrictions on trade and payment services transactions through the Pan African Payment and Settlement System (PAPSS).
The decision to remove these limits comes after the recent liberalization of the Nigerian Foreign Exchange Market, part of the CBN’s efforts to enhance foreign exchange inflows and support intra-African continental trade.
According to the circular, the previous restrictions, including the $20,000 and $200,000 quarterly limits per Individuals and Authorised Dealer Banks (ADBs) on the PAPSS, have been lifted. Additionally, the requirement for transactions to be ‘ONLY’ trade backed and inwards has also been removed.
Previously, in July 2023, the CBN had set a limit of $200,000 per quarter for authorised dealer banks (ADBs) and $20,000 per quarter for individual customers on the PAPSS.
PAPSS serves as a cross-border financial market infrastructure that facilitates payment transactions across Africa.
Over the past two months, the CBN has rolled out various policies aimed at stabilizing the Naira and strengthening the Nigerian economy.