The Central Bank of Nigeria (CBN) has announced revised documentation requirements for transactions conducted through the Pan-African Payment and Settlement System (PAPSS) in Nigeria.
In a statement signed by its Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, the apex bank said the initiative is part of its ongoing efforts to foster seamless intra-African trade, financial inclusion, and operational efficiency for Nigerians engaging in cross-border payments within Africa.
Among the key changes, which take immediate effect, is the directive allowing all Authorized Dealer Banks (ADBs) to source foreign exchange for PAPSS settlements through the Nigerian Foreign Exchange Market without recourse to the CBN.
According to the statement: “The Central Bank of Nigeria (CBN) is pleased to announce a significant review of the documentation requirements for transactions conducted through PAPSS in Nigeria. This initiative is part of CBN’s ongoing commitment to foster seamless intra-African trade, financial inclusion, and operational efficiency for Nigerians engaging in cross-border payments within Africa.”
Launched in January 2022 by Afreximbank, in partnership with the African Union and the African Continental Free Trade Area (AfCFTA) Secretariat, PAPSS serves as a centralized platform that enables instant, secure, and efficient cross-border transactions across Africa.
By facilitating payments in local currencies, PAPSS reduces reliance on third-party currencies, lowers transaction costs, and supports the rapid expansion of trade under the AfCFTA.
The CBN, in a circular referenced TED/FEM/PUB/FPC/001/006 issued on April 28, 2025, outlined the following key changes:
Simplified Documentation for Low-Value Transactions: Customers may now use basic Know Your Customer (KYC) and Anti-Money Laundering (AML) documents provided to their Authorized Dealer Banks for low-value transactions—up to $2,000 for individuals and $5,000 equivalent in Naira for corporate entities.
For transactions above these thresholds, all documentation stipulated in the CBN Foreign Exchange Manual and related circulars remains mandatory.
Responsibility of Applicants: Applicants are responsible for ensuring that all necessary regulatory documents are available to facilitate the clearance of goods, as required by relevant government agencies.
Foreign Exchange Sourcing: Authorized Dealer Banks may now independently source foreign exchange for PAPSS settlements through the Nigerian Foreign Exchange Market.
Export Proceeds Certification: All export proceeds repatriated via PAPSS must be certified by the relevant processing banks.
The CBN urged all banks to 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 take advantage of PAPSS for cross-border transactions within Africa.
For further details, stakeholders are advised to consult the official circular available on the CBN website at https://www.cbn.gov.ng.
