The Central Bank of Nigeria (CBN) has made a significant move to boost trade and payment services transactions on the Pan African Payment and Settlement System (PAPSS) by removing all limits previously placed on such transactions. This decision, as outlined in a recent circular signed by Hassan Mahmud, director of the trade and exchange department, comes in the wake of the CBN’s efforts to enhance foreign exchange inflows and promote intra-Africa continental trade.

In a bid to further liberalize the Nigerian Foreign Exchange Market, the CBN has taken steps to remove restrictions and limits on the PAPSS, including the previous caps of US$20,000 and US$200,000 per quarter for individuals and Authorised Dealer Banks (ADBs) respectively. Additionally, the requirement for trade transactions to be backed by inward transactions has also been lifted.

This development follows the apex bank’s decision in July 2023 to set limits on dollar transactions on the PAPSS at $200,000 per quarter for ADBs and $20,000 per quarter for customers. The PAPSS serves as a vital cross-border financial market infrastructure that facilitates payment transactions across Africa, promoting seamless trade and economic integration on the continent.

Over the past few months, the CBN has rolled out a series of policies aimed at strengthening the Naira and bolstering the Nigerian economy. These measures, coupled with the recent removal of limits on PAPSS transactions, are expected to further stimulate economic growth and enhance financial stability in Nigeria.

With these latest developments, the CBN is demonstrating its commitment to fostering a conducive environment for trade and investment, both within Nigeria and across the African continent. The removal of restrictions on PAPSS transactions signifies a significant step towards promoting financial inclusivity and driving economic prosperity in the region.

As the CBN continues to implement progressive policies to support the Nigerian economy, the future looks promising for businesses and individuals looking to engage in cross-border trade and payment transactions. The decision to remove limits on PAPSS transactions is a clear indication of the CBN’s proactive approach towards enhancing financial connectivity and promoting economic development in Nigeria and beyond.