CBN announces the documentation requirements revised for Paps transactions

CBN announces the documentation requirements revised for Paps transactions

Abuja (Reporter Core) The Central Bank of Nigeria (CBN) has announced a documentation requirement for the transactions conducted through the Panofricano payment and regulation system (Paps) in Nigeria.

This was disclosed in a declaration issued by the interim director of the Apex bank, Corporate Communications, Mrs. Hakama Sidi Ali

The CBN said that the new initiative is part of its constant commitment to encourage intra-African trade seamlessly, financial inclusion and operational efficiency for Nigerians who engage in transfrontractary payments within Africa.

Launched by Afreximbank in collaboration with the African Union and the Afcfta secretariat (African Continental Free Trade (AFCFTA) in January 2022, Ponse acts as a payment platform and centralized regulation that allows instant, safe and efficient transactions throughout Africa.

By facilitating payments in local currencies, paps minimize dependence on third -party currencies, reduces transaction costs and supports the rapid expansion of exchanges pursuant to the FCCFTA.

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

The added key changes have an effect immediately and include the simplified documentation for low value transactions, which allow customers to now use Kyc and AML basic documents provided to their authorized banks for dealers for low -value transactions up to $ 2,000 and $ 5,000 equivalent to Naira for people and corporate bodies, respectively.

“For transactions above the thresholds, all the documentation established in the CBN changes manual and in related circulars it remains mandatory,” said the bank.

In addition, the CBN added that candidates are responsible for ensuring that all regulatory documents are available to facilitate the authorization of goods, as required by relevant government agencies.

“The authorized banks of retailers can now obtain in foreign currency for Paps settlements through the Nigerian change market, without resorting to the CBN.

“All the proceeds of exports repatriated through Paps must be certified by relevant processing banks.

“The central bank of Nigeria urges all the banks to adopt Paps and start the transactions of origin in line with this new policy.

“In addition, CBN encourages exporters, importers and individuals to familiarize yourself with the new requirements and exploit the dads for cross -border transactions within Africa,” says the declaration.