The Central Bank of Nigeria (CBN) has announced changes to the foreign exchange sourcing and documentation requirements for transactions conducted through the Pan-African Payment and Settlement System (PAPSS) in Nigeria.
These updates are aimed at facilitating smoother and more efficient cross-border transactions within Africa.
According to a statement on Monday by Hakama Sidi Ali (Mrs.), Acting Director of Corporate Communications, Authorised Dealer Banks (ADBs) are now permitted to source foreign exchange for PAPSS settlements directly from the Nigerian Foreign Exchange Market, eliminating the need for recourse to the CBN.
This measure is expected to improve liquidity and enhance the speed of settlement processes for cross-border payments.
The revised guidelines are contained in the “Revised Documentation Requirements for PAPSS,” issued in Abuja, and take immediate effect.
Other key provisions introduced include the certification of all export proceeds repatriated via PAPSS by the relevant processing banks. This requirement aims to maintain regulatory compliance and ensure transparency in international trade transactions.
Furthermore, a new, simplified documentation process has been introduced for low-value transactions. Individuals undertaking transactions up to $2,000 (or its equivalent in naira) and corporate entities with transactions up to $5,000 can now rely on basic Know-Your-Customer (KYC) and Anti-Money Laundering (AML) documents previously submitted to their banks.
However, transactions exceeding these thresholds must comply fully with documentation requirements as stipulated in the CBN Foreign Exchange Manual and related circulars.
In addition, applicants are now expected to ensure that all regulatory documents required for the clearance of goods are readily available. This responsibility shift is designed to expedite trade processing and strengthen accountability among cross-border traders.
According to Mrs. Sidi Ali, these adjustments are part of CBN’s ongoing efforts to promote seamless intra-African trade, drive financial inclusion, and enhance operational efficiency for Nigerians participating in cross-border transactions within the continent.
PAPSS, launched in January 2022 by the African Export-Import Bank (Afreximbank) in collaboration with the African Union and the African Continental Free Trade Area (AfCFTA) Secretariat, operates as a centralized platform for payment and settlement of transactions across Africa.
By enabling payments in local currencies, the system reduces dependency on third-party currencies, lowers transaction costs, and supports the rapid expansion of trade activities under the AfCFTA framework.
The CBN, through a circular referenced TED/FEM/PUB/FPC/001/006 dated April 28, 2025, detailed these changes and encouraged banks across the country to fully adopt PAPSS for originating transactions.
Exporters, importers, and individuals have been advised to familiarize themselves with the new requirements and leverage the opportunities provided by PAPSS to carry out efficient, secure, and cost-effective cross-border payments within Africa.
The latest directive is expected to strengthen Nigeria’s participation in the continental trade framework and boost economic integration efforts across African markets.
