Regulatory Alerts2023-07-26 | TED/FEM/PUB/FPC/01/005Introduction of the Pan African Payments and Settlement System (PAPSS)
The Central Bank of Nigeria issues additional guidelines for the Pan African Payments and Settlement System (PAPSS), emphasizing trade-backed transactions with a limit of $20,000 per customer and $200,000 per authorized dealer bank per quarter. Authorized dealers must obtain CBN approval for USD cover before initiating PAPSS payments, and multiple applications through different banks are not permitted.
CENTRAL BANK OF NIGERIA Corporate Head Office Central Business District P.M.B. 0187, Garki, Abuja, FCT TRADE AND EXCHANGE DEPARTMENT 09 46237831 09 46237809 E-mail address: ted@cbn.gov.ng
Ted/Fem/Pub/Fpc/01/005
July 25, 2023 TO: ALL AUTHORIZED DEALERS RE: INTRODUCTION OF THE PAN AFRICAN PAYMENTS AND SETTLEMENT SYSTEM (PAPSS) the circular dated October 11, 2021 and referenced Further to TED/FEM/PUB/FPC/01/007 on the above subject, the Central Bank of Nigeria wishes to provide the following additional clarifications, for PAPSS transactions to be settled using CBN foreign exchange: e I.
That PAPSS transactions remain trade backed; = II.
That eligible payment mode shall be Bills for Collection.
III.
That the limit per customer shall be US$20,000.00 (Twenty Thousand US dollars) per quarter.
IV.
That the limit per Authorised Dealer Bank (ADB) shall be US$200,000.00 (Two Hundred Thousand US dollars) per quarter; V.
That multiple applications through different ADBs is not allowed.
VI.
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 on https://svp.tradesystem.gov.ng 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. BANK OF N Please ensure compliance.
O.S. NNAJI DIRECTOR TRADE AND EXCHANGE DEPARTMENT