The Central Bank of Nigeria, CBN, has announced a significant revision of the documentation requirements for transactions conducted through the Pan-African Payment and Settlement System, PAPSS, in Nigeria, aimed at facilitating trade within the continent.
This was contained in a statement released by the apex bank's acting spokesperson, Hakama Sidi Ali, on Monday.
This initiative forms part of the CBN’s ongoing commitment to foster seamless intra-African trade, enhance financial inclusion, and promote operational efficiency for Nigerians engaging in cross-border payments within Africa.
In a circular referenced TED/FEM/PUB/FPC/001/006, issued on 28 April 2025, the CBN outlined key changes to the documentation requirements associated with PAPSS transactions, including simplified documentation for low-value transactions. Customers may now use basic Know Your Customer, KYC, and Anti-Money Laundering, AML documents provided to their Authorised Dealer Banks, ADBs, for low-value transactions, set at the equivalent of USD 2,000 for individuals and USD 5,000 for corporate entities in naira.
For transactions exceeding these thresholds, all documentation stipulated in the CBN Foreign Exchange Manual and related circulars remains mandatory.
Regarding the responsibilities of applicants, the CBN explained that they must ensure all regulatory documents are available to facilitate the clearance of goods, as required by the relevant government agencies.
Additionally, the CBN stated that Authorised Dealer Banks may now source foreign exchange for PAPSS settlements through the Nigerian Foreign Exchange Market, without recourse to the CBN. All export proceeds repatriated via PAPSS must be certified by the relevant processing banks.
“The Central Bank of Nigeria urges all banks to adopt PAPSS and commence originating transactions in line with this new policy. In addition, CBN encourages exporters, importers, and individuals to familiarise themselves with the new requirements and leverage PAPSS for cross-border transactions within Africa,” the apex bank stated.
Recall that PAPSS was launched by Afreximbank, in partnership with the African Union and the African Continental Free Trade Area, AfCFTA Secretariat, in January 2022, to serve as a centralised payment and settlement platform that enables instant, secure, and efficient cross-border transactions throughout Africa.
