*The Central Bank of Nigeria urges all banks, exporters, importers, and individuals to familiarise themselves with the new guidelines and leverage the Pan-African Payment and Settlement System for seamless cross-border transactions across Africa

Gbenga Kayode | 绿帽献妻

In its bid to foster seamless intra-African trade, financial inclusion, and operational efficiency for Nigerians, the Central Bank of Nigeria (CBN) has announced a significant review of the documentation requirements for transactions conducted through the Pan-African Payment & Settlement System (PAPSS) in Nigeria.

Afreximbank launched in partnership with the African Union and the African Continental Free Trade Area (AfCFTA) Secretariat January 2022.

According to CBN, PAPSS serves as a centralised payment and settlement platform that enables instant, secure, and efficient cross-border transactions throughout the continent.

绿帽献妻 reports the PAPSS initiative is part of CBN鈥檚 ongoing commitment to fostering seamless intra-African trade, financial inclusion, and operational efficiency for Nigerians engaging in cross-border payments on the African continent.

The CBN, in a circular dated April 28, 2025, announced the simplified documentation for low-value PAPSS transactions.

The aim is to allow individual consumers and corporates to use basic KYC and AML documents for transactions up to USD 2,000 and USD 5,000 respectively.

The Bankers’ Bank, however, noted that higher-value transactions would still require full documentation as outlined in the CBN Foreign Exchange Manual.

The Bank also stated that Authorised Dealer Banks (ADBs) could then source Foreign Exchange (Forex) for PAPSS settlements directly from the Nigerian Foreign Exchange Market, without relying on the CBN.

Besides, export proceeds repatriated via PAPSS must be certified by the processing banks, the circular noted.

The banking sector regulator also urged all banks, exporters, importers, and individuals to familiarise themselves with the new guidelines and leverage PAPSS for seamless cross-border transactions across Africa.

By facilitating payments in local currencies therefore, PAPSS minimises reliance on third-party currencies, reduces transaction costs, and supports the rapid expansion of trade under the AfCFTA, the Bank noted.