The Central Bank of Nigeria (CBN) has imposed restrictions on dollar transactions through the Pan-African Payment and Settlement System (PAPSS).
According to a circular signed by Dr. Ozoemena Nnaji, the director of the Trade and Exchange department at CBN, authorized dealer banks (ADBs) can only transact up to $200,000 per quarter, while customers are limited to $20,000 per quarter
Furthermore, the circular states that transactions will be priced based on the CBN’s foreign exchange rates.
The apex bank noted that multiple applications through different ADBs are not allowed, saying, “For settlement of PAPSS transactions by CBN, authorized dealers shall obtain the approval of CBN for USD cover before initiating payments on PAPSS. The request for approval will be submitted online.
“Please note that authorized 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 serves as a global payment system and cross-border financial market infrastructure, facilitating seamless remittance payments and trade transactions among African nations.
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 authorized Dealer Bank (ADB) shall be $200,000 per quarter.”
