The Central Bank of Nigeria (CBN) has announced a major update to the documentation requirements for transactions under the Pan-African Payment and Settlement System (PAPSS).
In a statement issued by Hakama Sidi-Ali, Acting Director of Corporate Communications at the CBN, the review forms part of the apex bank’s broader efforts to enhance intra-African trade and promote financial inclusion across the continent.
According to Sidi-Ali, the adjustments are intended to boost operational efficiency for Nigerians conducting cross-border transactions within Africa. PAPSS, which was launched in January 2022 by Afreximbank in collaboration with the African Union and the African Continental Free Trade Area (AfCFTA) Secretariat, plays a central role in facilitating instant, secure, and efficient payments across Africa.
By enabling transactions in local currencies, PAPSS aims to minimise dependence on third-party currencies, lower transaction costs, and accelerate the growth of trade under the AfCFTA framework.
Sidi-Ali emphasised that exporters and importers must ensure all necessary regulatory documentation is available to support goods clearance processes as mandated by relevant government agencies.
She added, “Authorised Dealer Banks are now permitted to source foreign exchange for PAPSS settlements directly from the Nigerian Foreign Exchange Market without resorting to CBN funds.”
“All export proceeds repatriated through PAPSS must be duly certified by the relevant processing banks,” she further clarified.
The CBN has urged all banks to fully integrate PAPSS into their operations and begin initiating transactions following the new policy directives. Exporters, importers, and individuals are also encouraged to familiarise themselves with the new requirements to maximise the system’s potential.
A circular issued by the CBN on April 28 detailed the primary changes, including simplified documentation requirements for low-value transactions.
Under the new policy, individuals can now use basic Know Your Customer (KYC) and Anti-Money Laundering (AML) documents submitted to their Authorised Dealer Banks for transactions between $2,000 and $5,000 (or their naira equivalent).
However, for transactions exceeding these thresholds, complete documentation as outlined in the CBN Foreign Exchange Manual and related directives remains mandatory.
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