The Central Bank of Nigeria (CBN) has issued a directive revising documentation requirements for transactions conducted through the Pan-African Payment and Settlement System (PAPSS).
In the circular, the apex bank announced that all export proceeds exceeding $2,000 for individuals and $5,000 for corporates must now comply with full documentation as outlined in the CBN Foreign Exchange Manual and existing circulars.
CBN hopes to tighten regulatory oversight and ensure transparency in cross-border transactions with this directive.
“For transactions above USD2,000 and USD5,000 for individual and corporate, respectively, all documentation requirements stipulated in the CBN Foreign Exchange Manual and extant circulars shall apply,” the statement read.
- Advertisement -
Conversely, low-value transactions—those below the $2,000 and $5,000 thresholds—will benefit from simplified documentation. Basic Know Your Customer (KYC) and Anti-Money Laundering (AML) documentation, already submitted to Authorized Dealer Banks (ADBs), will suffice for such cases.
The directive also places the onus on applicants to ensure that all regulatory documents required for the clearance of goods are readily available to relevant government agencies, so as to avoid delays in customs and improve the efficiency of trade processes.
Significantly, the CBN now permits Authorized Dealer Banks to independently source foreign exchange for PAPSS settlements through the Nigerian Foreign Exchange Market, eliminating the need for direct reliance on the central bank.
Also, the CBN emphasized that export proceeds repatriated via PAPSS must be certified by the processing banks, reinforcing their roles in tracking trade revenues and promoting transparency.
The PAPSS is a platform launched in 2022 by Afreximbank in partnership with the African Union and the AfCFTA Secretariat. PAPSS enables instant, secure, and efficient cross-border transactions using local currencies, thereby reducing dependence on foreign currencies and cutting transaction costs.
- Advertisement -
The CBN urges all stakeholders—including banks, exporters, importers, and individuals—to familiarize themselves with the updated requirements and leverage PAPSS to enhance financial inclusion, trade facilitation, and economic integration across Africa.
