The Central Bank of Nigeria (CBN) has directed all banks operating in the country to adopt the Pan-African Payment and Settlement System (PAPSS) and commence originating transactions under the new framework, as part of efforts to deepen intra-African trade and improve cross-border payment efficiency.
According to a statement on Monday by Mrs Hakama Sidi Ali, the CBN’s Acting Director of Corporate Communication, this directive follows the CBN’s recent announcement of a significant review of documentation requirements for PAPSS transactions in Nigeria.
In a circular referenced TED/FEM/PUB/FPC/001/006, issued on April 28, 2025, the apex bank outlined key changes aimed at promoting greater participation by banks, exporters, importers, and individuals.
Launched in January 2022 by Afreximbank in partnership with the African Union and the African Continental Free Trade Area (AfCFTA) Secretariat, PAPSS serves as a centralized platform that enables instant, secure, and efficient cross-border transactions across Africa.
It allows for payments to be made in local currencies, thereby reducing reliance on third-party currencies like the U.S. dollar, minimizing transaction costs, and supporting the expansion of trade under the AfCFTA.
The CBN’s latest move signals a push to fully integrate Nigerian banks and businesses into Africa’s evolving payment ecosystem.
Overall, the adoption of PAPSS is expected to make cross-border payments more accessible, efficient, and cost-effective for Nigerian businesses and individuals engaging within the African continent.