The Central Bank of Nigeria (CBN) has announced new measures aimed at simplifying documentation requirements for transactions conducted through the Pan-African Payment and Settlement System (PAPSS).
In a circular issued on Monday, April 28, 2025, the apex bank disclosed that individuals making PAPSS transactions up to $2,000 and corporate entities up to $5,000 will now be allowed to use existing Know Your Customer (KYC) and Anti-Money Laundering (AML) documents already submitted to their banks. This move is expected to facilitate smoother and faster cross-border payments within Africa.
However, the CBN clarified that transactions exceeding these limits would still require full documentation, in line with the provisions of the CBN Foreign Exchange Manual and other extant regulations.
In a further bid to ease operations, the CBN has granted Authorized Dealer Banks (ADBs) permission to source foreign exchange for PAPSS settlements directly from the Nigerian Foreign Exchange Market without prior approval from the CBN. This is aimed at improving liquidity and speeding up the settlement process for cross-border transactions.
The central bank also stressed that export proceeds repatriated via PAPSS must be certified by the processing banks to ensure compliance with regulatory standards.
The reforms align with ongoing efforts to boost intra-African trade, enhance financial integration, and support the objectives of the African Continental Free Trade Area (AfCFTA). PAPSS, launched in January 2022 by Afreximbank in collaboration with the African Union, provides a centralized platform for instant and secure cross-border payments across the continent, reducing reliance on third-party currencies and lowering transaction costs.
The CBN urged banks, exporters, importers, and individuals involved in cross-border trade to familiarize themselves with the revised guidelines and take full advantage of the PAPSS platform.
