CBN revises documentation requirements for PAPSS transactions

In a bid to foster seamless intra-African trade, financial inclusion, and operational efficiency for Nigerians engaging in cross-border payments within Africa, 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.

This was announced in a circular dated April 28, 2025 by the apex bank titled “Review Of Documentation Requirement For PAPSS Transactions In Nigeria” signed by Dr Musa Narkoji, Director, Trade & Exchange Dept, CBN

Under the revised documentation, it allows individuals and corporates to use basic Know Your Customer (KYC) and Anti-Money Laundering (AML) documents for transactions up to $2,000 and $5,000 respectively.

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.

According to the circular, high-value transactions will still require full documentation as outlined in the CBN Foreign Exchange Manual.

The CBN also stated that Authorized Dealer Banks (ADBs) can now source foreign exchange for PAPSS settlements directly from the Nigerian Foreign Exchange Market, without relying on the CBN.

Additionally, export proceeds repatriated via PAPSS must be certified by the processing banks.

The apex bank urged all banks, exporters, importers, and individuals to familiarize themselves with the new guidelines and leverage PAPSS for seamless cross-border transactions across Africa.

By: Babajide Okeowo

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