CBN Eases Documentation Requirements For PAPSS Transactions
THECONSCIENCE NG reports that the Central Bank of Nigeria (CBN) has announced a major revision to the documentation requirements for transactions via the Pan-African Payment & Settlement System (PAPSS), aimed at promoting easier and more inclusive cross-border payments within Africa.
In a circular dated April 28, 2025, the CBN introduced simplified documentation for low-value PAPSS transactions. Individuals can now process transactions up to $2,000 using basic Know Your Customer (KYC) and Anti-Money Laundering (AML) documents, while corporates can do the same for transactions up to $5,000. Higher-value transactions will still require full documentation in line with the CBN Foreign Exchange Manual.
The CBN also authorized Dealer Banks to source foreign exchange for PAPSS settlements directly from the Nigerian Foreign Exchange Market, eliminating the need to rely on the CBN. Additionally, export proceeds repatriated through PAPSS must be certified by the processing banks.
The central bank urged banks, exporters, importers, and individuals to familiarize themselves with the new guidelines and utilize PAPSS to enhance cross-border trade efficiency.
Launched in January 2022 by Afreximbank, in collaboration with the African Union and AfCFTA Secretariat, PAPSS enables instant, secure, and cost-effective transactions across Africa by allowing payments in local currencies and reducing dependence on third-party currencies.
