CBN Eases Documentation for Low-Value PAPSS Transactions
…Grants Banks FX Autonomy
By Patience Ikpeme
The Central Bank of Nigeria (CBN) has announced a revision of the documentation requirements for transactions conducted through the Pan-African Payment and Settlement System (PAPSS) within Nigeria.
The new regulations, effective immediately, aim to streamline cross-border payments within Africa, boost financial inclusion, and enhance operational efficiency for Nigerian traders and individuals.
Mrs. Hakama Sidi Ali, the Acting Director of Corporate Communications Department at the CBN, detailed the key changes in a statement released in Abuja on Monday. A significant aspect of the review involves simplified documentation for lower-value transactions. Individual customers can now utilize their basic Know Your Customer (KYC) and Anti-Money Laundering (AML) documents, previously provided to their Authorized Dealer Banks (ADBs), for transactions up to USD 2,000 or its Naira equivalent. Similarly, corporate entities can use these existing documents for transactions up to USD 5,000 or its Naira equivalent.
For transactions exceeding these thresholds, the CBN clarified that all documentation as stipulated in the CBN Foreign Exchange Manual and related circulars remains mandatory.
The CBN also placed responsibility on applicants to ensure all necessary regulatory documents are available to facilitate the clearance of goods, as mandated by relevant government agencies. This measure seeks to ensure compliance with existing trade regulations alongside the streamlined payment process.
In a move towards greater market autonomy, the CBN announced that Authorized Dealer Banks are now permitted to source foreign exchange for PAPSS settlements directly from the Nigerian Foreign Exchange Market, without requiring recourse to the CBN. This policy shift is expected to enhance the speed and efficiency of PAPSS transactions by allowing banks to manage their foreign exchange needs directly.
Regarding export proceeds, the CBN stipulated that all funds repatriated via the PAPSS platform must be certified by the relevant processing banks. This measure aims to ensure the proper tracking and accountability of export earnings flowing back into the Nigerian economy through the PAPSS system.
The CBN’s latest initiative aligns with its ongoing commitment to promote seamless intra-African trade and financial integration. PAPSS, 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 for instant, secure, and efficient cross-border payments across Africa.
By enabling transactions in local currencies, PAPSS reduces the reliance on intermediary currencies, lowers transaction costs, and supports the accelerated growth of trade under the AfCFTA framework.
The CBN formally outlined these key changes to the documentation requirements for PAPSS transactions in a recent circular, referenced TED/FEM/PUB/FPC/001/006, issued on April 28, 2025.
The Central Bank of Nigeria is actively encouraging all banks to adopt the PAPSS platform and commence originating transactions in accordance with this new policy framework. Furthermore, the CBN is urging exporters, importers, and individual users to familiarize themselves with the revised requirements and to leverage the benefits of PAPSS for their cross-border payment activities within the African continent.
This move signals a significant step towards fostering greater economic connectivity and trade efficiency across Africa.
