The Central Bank of Nigeria has announced a major review of the documentation requirements for transactions conducted through the Pan-African Payment and Settlement System in Nigeria.
The CBN said the action is part of its continuous efforts to foster financial inclusion, facilitate smooth intra-African trade, and increase operational efficiency for Nigerians making cross-border payments within Africa.
Launched by Afreximbank in collaboration with the African Union and the African Continental Free Trade Area Secretariat in January 2022, PAPSS serves as a centralized platform for instant, secure, and efficient cross-border transactions across the continent.
The system enables payments in local currencies, decreasing reliance on third-party currencies, lowering transaction costs, and speeding trade growth within the AfCFTA framework.
In a circular referenced TED/FEM/PUB/FPC/001/006 issued on April 28, 2025, the CBN outlined the key changes now effective for PAPSS transactions.
The apex bank said: “Simplified Documentation for Low-Value Transactions: For low-value transactions (USD 2,000 for individuals and USD 5,000 for corporations, respectively), customers can now use basic KYC and AML documents that are given to their Authorised Dealer Banks (ADBs).
“For transactions above the thresholds, all documentation as stipulated in the CBN Foreign Exchange Manual and related circulars remain mandatory.”
The CBN also clarified the responsibilities of applicants, saying:
“Applicants are responsible for ensuring all regulatory documents are available to facilitate the clearance of goods, as required by relevant government agencies.”
On the sourcing of foreign exchange, the apex bank explained:
“Authorized Dealer Banks may now source foreign exchange for PAPSS settlements through the Nigerian Foreign Exchange Market (without recourse to the CBN).”
The bank also stressed how export revenues should be handled, stating that “all export proceeds repatriated via PAPSS shall be certified by the relevant processing banks.”
All banks were instructed by the CBN to implement PAPSS and start initiating transactions in accordance with the new policy right away.
Additionally, it urged individuals, importers, and exporters to become acquainted with the most recent regulations and use PAPSS for their international business in Africa.