IN a move aimed at promoting smoother intra-African trade and enhancing financial inclusion, the CBN has announced major changes to the documentation needed for the Pan-African Payment and Settlement System (PAPSS transactions).
According to a circular dated April 28, 2025, the CBN has introduced simplified procedures for low-value PAPSS transactions.
Individuals can now complete transactions up to USD 2,000, and corporations up to USD 5,000, by providing only basic Know Your Customer (KYC) and Anti-Money Laundering (AML) documentation.
However, transactions above these limits must still meet full documentation requirements as specified in the CBN’s Foreign Exchange Manual.
Additionally, the CBN announced that Authorized Dealer Banks (ADBs) are now permitted to independently source foreign exchange for PAPSS settlements directly from the Nigerian Foreign Exchange Market, removing the previous dependency on the CBN.
Export proceeds processed through PAPSS must be verified and certified by the banks handling the transactions.
The CBN encouraged banks, exporters, importers, and individuals to familiarize themselves with the updated guidelines and take full advantage of PAPSS for efficient cross-border payments across Africa.
Launched in January 2022 by Afreximbank in collaboration with the African Union and the AfCFTA Secretariat, PAPSS provides a centralized platform for secure, instant, and cost-effective cross-border transactions across African nations. By facilitating transactions in local currencies, PAPSS reduces reliance on foreign currencies, cuts transaction costs, and supports the growth of trade under the African Continental Free Trade Area (AfCFTA).
