The Central Bank of Nigeria (CBN) has introduced updated documentation requirements for transactions carried out via the Pan-African Payment and Settlement System (PAPSS) in Nigeria.
In a statement issued on Monday, April 28, by its Acting Director of Corporate Communications, Hakama Sidi Ali, the apex bank indicated that this initiative is part of its continuous efforts to promote smooth intra-African trade, enhance financial inclusion, and improve operational efficiency for Nigerians involved in cross-border payments across Africa.
Naija News reports that one of the significant changes, which takes effect immediately, is the instruction permitting all Authorised Dealer Banks (ADBS) to obtain foreign exchange for PAPSS settlements directly from the Nigerian Foreign Exchange Market without needing to consult 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.”
Initiated in January 2022 by Afreximbank in collaboration with the African Union and the African Continental Free Trade Area (AfCFTA) Secretariat, PAPSS functions as a centralised platform that facilitates immediate, secure, and efficient cross-border transactions throughout Africa.
By allowing payments in local currencies, PAPSS minimises dependence on third-party currencies, reduces transaction costs, and promotes the swift growth of trade under the AfCFTA.
The Central Bank of Nigeria (CBN), in a circular referenced TED/FEM/PUB/FPC/001/006 issued on April 28, 2025, highlighted several significant updates: Simplified Documentation for Low-Value Transactions: Customers can now utilize basic Know Your Customer (KYC) and Anti-Money Laundering (AML) documents submitted 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 exceeding these limits, all documentation required by the CBN Foreign Exchange Manual and related circulars remains obligatory. Responsibility of Applicants: It is the responsibility of applicants to ensure that all necessary regulatory documents are available to facilitate the clearance of goods, as mandated by relevant government agencies.
Foreign Exchange Sourcing: Authorised Dealer Banks are now permitted to 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 appropriate processing banks.
The CBN has urged all banks to embrace PAPSS and commence originating transactions in accordance with the new policy.
Additionally, exporters, importers, and individuals are encouraged to familiarise themselves with the updated requirements and leverage PAPSS for cross-border transactions within Africa.
For more information, stakeholders are advised to refer to the official circular available on the CBN website at https://www.cbn.gov.ng.
