The Central Bank of Nigeria (CBN) has announced new documentation guidelines for transactions conducted through the Pan African Payment and Settlement System (PAPSS), aimed at improving the ease of cross-border payments across Africa.
In a statement issued by Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications, the apex bank described the move as part of its broader effort to promote intra-African trade, enhance financial inclusion, and strengthen operational efficiency for Nigerians engaging in regional transactions.
Okay.ng reports that PAPSS, launched in January 2022 by Afreximbank in collaboration with the African Union and the African Continental Free Trade Area (AfCFTA) Secretariat, was designed to serve as a centralized platform for instant and secure cross-border payments across the continent. The system enables transactions in local currencies, reducing the need for third-party currencies and lowering transaction costs.
In a recent circular referenced TED/FEM/PUB/FPC/001/006, issued on April 28, 2025, the CBN detailed the revised documentation rules for PAPSS-related payments.
According to the circular, one of the key changes includes simplified documentation for low-value transactions, allowing customers to use basic Know Your Customer (KYC) and Anti-Money Laundering (AML) documents already provided to their Authorized Dealer Banks (ADBs).
The new thresholds are set at USD 2,000 equivalent in Naira for individuals and USD 5,000 equivalent in Naira for corporate entities. For transactions exceeding these amounts, the documentation requirements stipulated in the CBN Foreign Exchange Manual and related circulars remain applicable.
The statement further clarified: “Applicants are responsible for ensuring all regulatory documents are available to facilitate the clearance of goods, as required by relevant government agencies.
“Authorized Dealer Banks may now source foreign exchange for PAPSS settlements through the Nigerian Foreign Exchange Market (without recourse to the CBN).
“All export proceeds repatriated via PAPSS shall be certified by the relevant processing banks. The Central Bank of Nigeria urges all banks to adopt PAPSS and commence originating transactions in line with this new policy. In addition, CBN encourages exporters, importers, and individuals to familiarise themselves with the new requirements and leverage PAPSS for cross-border transactions within Africa.”
