.jpg)
The Central Bank of Nigeria (CBN) has revised its guidelines for transactions conducted through the Pan-African Payment and Settlement System (PAPSS), aiming to enhance intra-African trade and streamline cross-border payments.
Key Revisions to PAPSS Transaction Guidelines
-
Removal of Transaction Limits: The CBN has eliminated the previous quarterly transaction caps of $20,000 for individuals and $200,000 for Authorized Dealer Banks (ADBs), allowing for greater flexibility in cross-border trade payments.
-
Expanded Transaction Scope: The restriction limiting PAPSS transactions to only trade-backed and inward transactions has been lifted. This change broadens the range of permissible transactions under PAPSS.
-
Foreign Exchange Sourcing: ADBs are now permitted to source foreign exchange for PAPSS transactions directly from the Nigerian Foreign Exchange Market without requiring prior approval or cover from the CBN.
-
Continued Documentation Requirements: Despite these liberalizations, all existing documentation requirements as stipulated in the CBN's Foreign Exchange Manual and related circulars remain in effect. Export proceeds repatriated under PAPSS must be certified by the respective processing banks.
These adjustments are part of the CBN's broader strategy to liberalize the Nigerian Foreign Exchange Market and bolster foreign exchange inflows by facilitating seamless intra-African trade.
