The Central Bank of Nigeria (CBN) on Monday issued a revised requirements for documentation of transactions conducted through the Pan-African Payment &
Settlement System (PAPSS) in Nigeria.
The fresh procedures, which followed a significant review of the previous requirements, 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 by Afreximbank in partnership with the African Union and the African Continental Free Trade Area (AfCFTA) Secretariat in January 2022, PAPSS serves as a centralized payment and settlement platform that enables instant, secure, and efficient cross-border transactions throughout Africa.
By facilitating payments in local currencies, PAPSS minimizes reliance on third-party currencies, like dollars, pounds and euros; reduces transaction costs, and supports the
rapid expansion of trade under the AfCFTA.
In a recent circular referenced TED/FEM/PUB/FPC/001/006 issued on April 28, 2025, CBN
outlined the key changes to the documentation requirements associated with PAPSS
transactions.
Highlights of the key changes which take immediately effect, include simplified documentation for low-value transactions.
Under the revised arrangement, customers may now use basic
know-your-customer (KYC) and anti-money laundering (AML) documents provided to their Authorized Dealer Banks (ADBs) for low-value transactions ($2,000 and $5,000 equivalent in Naira for Individuals and corporate, respectively).
For transactions above the thresholds, the revised procedures requires that all documentation stipulated in the
CBN Foreign Exchange Manual and related circulars remain mandatory.
On the responsibility of applicants, the new guidelines requires applicants to be responsible for ensuring all regulatory documents are available to facilitate the clearance of goods, as required by relevant government agencies, like the Nigeria Customs Service (NCS).
The sourcing for foreign exchange for PAPSS settlements transactions through the Nigerian Foreign Exchange Market, the new guidelines stated, may be by Authorized Dealer Banks without recourse to the CBN.
On export proceeds, the new guidelines said all export proceeds repatriated via PAPSS shall be certified by the
relevant processing banks.
Urging all banks to adopt PAPSS and commence originating
transactions in line with this new policy, the CBN encouraged exporters, importers,
and individuals to familiarise themselves with the new requirements and leverage PAPSS as the most effective platform for cross-border transactions within Africa.
