The Central Bank of Nigeria (CBN) has introduced major changes to the documentation requirements for transactions conducted through the Pan-African Payment and Settlement System (PAPSS) in Nigeria, with the goal of boosting trade across the continent.
This development was disclosed in a statement issued on Monday by the bank’s acting spokesperson, Hakama Sidi Ali.
According to the CBN, the move is part of its broader efforts to streamline intra-African trade, expand financial inclusion, and enhance the efficiency of cross-border transactions for Nigerians.
In a circular dated April 28, 2025 (Reference: TED/FEM/PUB/FPC/001/006), the apex bank detailed the adjustments, notably easing documentation for low-value transactions. Under the new policy, customers conducting transactions up to the equivalent of $2,000 for individuals and $5,000 for corporate organizations can simply use the basic Know Your Customer (KYC) and Anti-Money Laundering (AML) documents they have already provided to their Authorised Dealer Banks (ADBs).
However, for transactions that surpass these limits, full compliance with documentation requirements outlined in the CBN Foreign Exchange Manual and related guidelines remains compulsory.
The CBN also emphasized that applicants must ensure that all necessary regulatory documents are available to enable the proper clearance of goods by relevant government agencies.
Furthermore, the bank announced that Authorised Dealer Banks are now permitted to source foreign exchange for PAPSS settlements independently through the Nigerian Foreign Exchange Market, without seeking CBN’s intervention. Additionally, export proceeds processed via PAPSS must be validated by the respective processing banks.
“The CBN calls on all banks to embrace PAPSS and begin originating transactions under the new framework. Exporters, importers, and individuals are also encouraged to acquaint themselves with the updated requirements and make use of PAPSS for conducting cross-border transactions within Africa,” the statement read.
PAPSS, which was officially launched in January 2022 by Afreximbank in collaboration with the African Union and the African Continental Free Trade Area (AfCFTA) Secretariat, serves as a centralized platform designed to facilitate instant, secure, and efficient cross-border payments across the African continent.