CBN Revises Documentation Requirements For PAPSS Transactions

By Oluwakemi Kindness

The Central Bank of Nigeria (CBN) has announced a significant review of the documentation requirements for transactions conducted through the Pan-African Payment & Settlement System (PAPSS) in Nigeria.

According to a statement by the Bank on Monday, 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

Launched by Afreximbank in partnership with the African Union and the African Continental Free Trade Area (AfCFTA) Secretariat in January 2022, PAPSS serves as a centralized payment and settlement platform that enables instant, secure, and efficient cross-border transactions throughout Africa.

By facilitating payments in local currencies, PAPSS minimizes reliance on third-party currencies, reduces transaction costs, and supports the rapid expansion of trade under the AfCFTA.

In a recent circular referenced TED/FEM/PUB/FPC/001/006 issued on April 28, 2025, CBN outlined the key changes to the documentation requirements associated with PAPSS transactions.

The apex bank announced that under the Simplified Documentation for Low-Value Transactions: Customers may now use basic Know Your Customer (KYC) and Anti-Money Laundering (AML) documents provided to their Authorized Dealer Banks (ADBs) for low-value transactions (USD2,000 and USD 5,000 equivalent in Naira for Individuals and corporate, respectively).

It however, announced that for transactions above the thresholds, all documentation as stipulated in the its Foreign Exchange Manual and related circulars remain mandatory.

CBN noted that applicants are responsible for ensuring that all regulatory documents are available to facilitate the clearance of goods, as required by relevant government agencies.

it said Authorized Dealer Banks may now source foreign exchange for PAPSS settlements through the Nigerian Foreign Exchange Market (without recourse to the CBN).

It also directed that all export proceeds repatriated via PAPSS shall be certified by the relevant processing banks.

While announcing that the key changes take immediate effect, CBN urged all banks to adopt PAPSS and commence originating transactions in line with this new policy.

In addition, it encouraged exporters, importers, and individuals to familiarise themselves with the new requirements and leverage PAPSS for cross-border transactions within Africa.