The Central Bank of Nigeria (CBN) has given the greenlight to banks to source foreign exchange (FX) for Pan-African Payment and Settlement System (PAPSS) in Nigeria without its approval.
This is as it announced a major revision of the documentation requirements for transactions processed through the PAPSS in Nigeria.
This move underscores the CBN’s commitment to enhancing seamless intra-African trade, promoting financial inclusion, and improving operational efficiency for Nigerians participating in cross-border payments across the continent.
Launched by Afreximbank in partnership with the African Union (AU) and the African Continental Free Trade Area (AfCFTA) Secretariat in January 2022, PAPSS serves as a centralised payment and settlement platform that enables instant, secure, and efficient cross-border transactions throughout Africa.
By facilitating payments in local currencies, PAPSS minimises reliance on third-party currencies, reduces transaction costs, and supports the rapid expansion of trade under the AfCFTA.
In a recent circular referenced TED/FEM/PUB/FPC/001/006 issued on April 28, 2025, CBN outlined the key changes to the documentation requirements associated with PAPSS transactions.
The key changes take effect immediately, according to the CBN.
Changes to simplified documentation for low-value transactions will now see customers use basic KYC and AML documents provided to their Authorized Dealer Banks (ADBs) for low-value transactions ($2,000 and $5,000 equivalent in Naira for Individuals and corporate, respectively).
For transactions above the thresholds, all documentation as stipulated in the CBN Foreign Exchange Manual and related circulars remains mandatory.
It also noted that applicants are responsible for ensuring all regulatory documents are available to facilitate the clearance of goods, as required by relevant government agencies.
In terms of FX sourcing, Authorised Dealer Banks may now source foreign exchange for PAPSS settlements through the Nigerian Foreign Exchange Market (without recourse to the CBN).
The apex bank directed that all export proceeds repatriated via PAPSS shall be certified by the relevant processing banks.
The CBN then urged all banks to adopt PAPSS and commence originating transactions in line with this new policy, encouraging exporters, importers, and individuals to familiarise themselves with the new requirements and leverage PAPSS for cross-border transactions within Africa.