ENUGU, Nigeria (VOICE OF NAIJA) – In a recent move, the Central Bank of Nigeria (CBN) has imposed restrictions on the Pan-African Payment and Settlement System (PAPSS) transactions conducted by authorized dealer banks (ADB).
The CBN’s circular, signed by Ozoemena Nnaji, the Director of Trade and Exchange, announces a cap of $200,000 per quarter for ADBs and $20,000 per quarter for individual customers.
Under the new regulations, transactions on PAPSS will be priced based on the CBN’s foreign exchange rates.
The circular also emphasizes that multiple applications through different ADBs will not be permitted.
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“To facilitate settlement of PAPSS transactions, authorized dealers must seek CBN’s approval for USD cover before initiating payments.
“The approval request should be submitted online,” the circular clarifies.
It further states that authorized dealer banks are allowed to maintain a USD settlement account with the PAPSS settlement bank for certain transactions, excluding those for which CBN would not provide foreign exchange.
PAPSS, as an international payment system and cross-border financial market infrastructure, plays a crucial role in enabling remittance payments and promoting trade between African countries.