CBN revised documentation requirements for PAPSS transactions

In an effort to foster a smooth intra-African trade, financial inclusion, and operational efficiency for Nigerians involved in cross-border payments in Africa, the Nigerian central bank (CBN) has announced a significant review of the documentation requirements for transactions through the Pan-African Payment & Settlement System (PAPSS) in Nigeria.

This was announced in a circular dated April 28, 2025 by Bank Apex entitled “Review of Documentation Requirements for Papss Transactions in Nigeria” signed by Dr. Musa Narcoji, Director, Ministry of Trade & Exchange, CBN

Under the revised documentation, this allows individuals and companies to use the basic documents of Know Customer (KYC) and anti-money laerunding (AML) for transactions up to $ 2,000 and $ 5,000.

Launched by Afreximbank in a partnership with the African Union and the African Secretariat of the African Continental Freedom of Freedom (AFCFTA) in January 2022, PAPSS functions as a centralized payment and settlement platform that enables safe, safe and efficient cross -border transactions throughout Africa.

By facilitating payments in local currencies, PAPS minimizes dependence on third -party currencies, reducing transaction costs, and supporting rapid trade expansion under AFCFTA.

According to a circular, high -value transactions will still require full documentation as described in the CBN foreign exchange manual.

CBN also stated that the Official Dealer Bank (ADB) can now find foreign exchange for the settlement of PAPSS directly from the Nigerian foreign exchange market, without relying on CBN.

In addition, the export results discharged through PAPS must be certified by the processing bank.

Bank Apex urged all banks, exporters, importers, and individuals to familiarize themselves with new guidelines and utilize PAPS for smooth cross -border transactions throughout Africa.

By: Babajide Okeowo

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