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.
The CBN gave this directive in a review of documentation requirements for transactions conducted through the Pan-African Payment & Settlement System (PAPSS) in Nigeria, its spokesperson, Sidi Hakama, stated on Monday.
This initiative is part of CBN’s ongoing efforts to foster seamless intra-African trade, financial inclusion, and operational efficiency forNigerians engaging in cross-border payments within Africa.
Launched by Afreximbank in partnership with the African Union and the African ContinentalFree Trade Area (AfCFTA) secretariat in January 2022, PAPSS serves as a centralized payment and settlement platform that enables instant, secure, and efficient cross-border transactions throughout Africa.
By facilitating payments in local currencies, PAPSS is designed to minimize reliance on third-party currencies, reduce 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 PAPS transactions.
The apex bank made key changes including a simplified documentation for low-value transactions. “Customers may now use basic KYC and AML documents provided to their Authorised Dealer Banks (ADBs) for low-value transactions (USD2,000 and USD 5,000 equivalent in Naira for Individuals and corporate, respectively),” it stated.
For transactions above the thresholds, CBN said all documentation as stipulated in theCBN foreign exchange manual and related circulars remain mandatory.
Applicants are responsible for ensuring all regulatory documents are available to facilitate the clearance of goods, as required by relevant government agencies.
“Foreign Exchange Sourcing: Authorised Dealer Banks may now source foreign exchange for PAPSS settlements through the Nigerian Foreign Exchange Market (without recourse to the CBN),” she stated.
The apex bank said a export proceeds repatriation via PAPSS will be certified by the relevant processing banks.
The Central Bank of Nigeria urges all banks to adopt PAPSS and commence originating transactions in line with this new policy. It said the revised guidelines take effect immediately.
CBN encouraged exporters, importers,and individuals to familiarise themselves with the new requirements and leverage PAPSS for cross-border transactions within Africa.
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