The Central Bank of Nigeria(CBN) has limited the number of dollars to be transacted on the Pan-African Payment and Settlement System (PAPSS) to $200,000 per quarter by authorised dealer bank (ADB) and $20,000 per quarter for a customer.
This was stated in a circular signed by the CBN director, Trade and Exchange department, Dr Ozoemena Nnaji issued to all authorised dealers in the country. According to the circular, transactions would be priced based on CBN’s foreign exchange.
The apex bank noted that multiple applications through different ADBs are not allowed, saying, “for settlement of PAPSS transactions by CBN, authorised dealers shall obtain the approval of CBN for USD cover before initiating payments on PAPSS. The request for approval shall be submitted online.
“Please note that authorised dealer banks are allowed to maintain a USD settlement account with the PAPSS settlement bank to settle PAPSS transactions, for which CBN would not provide foreign exchange,” the circular reads.
PAPSS is an international payment system and cross-border financial market infrastructure enabling remittance payment and trade between African countries.
The circular stated that, “PAPSS transactions remain trade backed; that eligible payment mode shall be Bills for Collection; that the limit per customer shall be $20,000 00 per quarter. That the limit per Authorised Dealer Bank (ADB) shall be $200,000 per quarter.”
