The Central Bank of Nigeria (CBN) has announced a major review of the documentation requirements for transactions conducted through the Pan-African Payment and Settlement System (PAPSS) in Nigeria.
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The move, aimed at promoting seamless intra-African trade, financial inclusion, and operational efficiency, will make it easier for Nigerians engaging in cross-border payments within Africa.
Launched in January 2022 by Afreximbank in collaboration with the African Union and the African Continental Free Trade Area (AfCFTA) Secretariat, PAPSS serves as a centralized platform enabling instant, secure, and efficient cross-border transactions across the continent.
In a statement issued by Hakama Sidi Ali (Mrs.), Acting Director of Corporate Communications, the CBN noted that PAPSS facilitates payments in local currencies, thereby reducing reliance on third-party currencies, lowering transaction costs, and supporting trade expansion under the AfCFTA.
According to a circular referenced TED/FEM/PUB/FPC/001/006 and dated April 28, 2025, the apex bank outlined the following key changes:
- Simplified Documentation for Low-Value Transactions: Customers can now use basic Know Your Customer (KYC) and Anti-Money Laundering (AML) documents already provided to their Authorized Dealer Banks (ADBs) for low-value transactions — up to $2,000 for individuals and $5,000 for corporates (or equivalent in naira).
- Full Documentation for High-Value Transactions: Transactions exceeding these thresholds must still comply with documentation requirements as stipulated in the CBN Foreign Exchange Manual and related circulars.
- Applicant Responsibility: Applicants must ensure all necessary regulatory documents are available for the clearance of goods, as required by relevant government agencies.
- Foreign Exchange Sourcing: Authorized Dealer Banks are now permitted to source foreign exchange for PAPSS settlements directly from the Nigerian Foreign Exchange Market without recourse to the CBN.
- Certification of Export Proceeds: All export proceeds repatriated via PAPSS must be certified by the relevant processing banks.
The CBN urged all banks to fully adopt PAPSS and begin originating transactions in line with the new policy. It also encouraged exporters, importers, and individuals to familiarize themselves with the updated requirements and leverage PAPSS for cross-border transactions within Africa.
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