CBN Unveils Revised Documentation Requirements for PAPSS Transactions

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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.
A statement signed by
Hakama Sidi Ali (Mrs.)
CBN’s Acting Director, Corporate Communications, dated April 28, 2025, explained that the 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, the statement added.

According to the CBN, “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.”

The statement recalled that 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.

It highlighted the following key changes take effect immediately:

. Simplified Documentation for Low-Value Transactions: Customers may now use basic KYC and 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);

. For transactions above the thresholds, all documentation as stipulated in the
CBN Foreign Exchange Manual and related circulars remain mandatory;

. Responsibility of Applicants: Applicants are responsible for ensuring all regulatory
documents are available to facilitate the clearance of goods, as required by relevant
government agencies;

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

. Export Proceeds: All export proceeds repatriated via PAPSS shall be certified by the
relevant processing banks.

The CBN, therefore, urged all banks to adopt PAPSS and commence originating
transactions in line with this new policy.

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

The CBN said for further details can be got via its official circular on its website
(https:www.cbn.gov.ng).