Abuja, April 29, 2025 – The Central Bank of Nigeria (CBN) has announced the review of the foreign exchange sourcing and documentation requirements for transactions through the Pan-African Payment and Settlement System (PAPSS) in Nigeria.
It said the review was to facilitate smoother and more efficient cross-border transactions within Africa.
Hakama Sidi Ali, the CBN Acting Director of Corporate Communications, announced the new development in a statement on Monday.
The statement said Authorized Dealer Banks (ADBs) were now permitted to source foreign exchange for PAPSS settlements directly from the Nigerian Foreign Exchange Market, eliminating the need for recourse to the CBN.
The CBN said the measure was expected to improve liquidity and enhance the speed of settlement processes for cross-border payments.
According to the bank, other key provisions introduced include the certification of all export proceeds repatriated via PAPSS by the relevant processing banks. This requirement aims to maintain regulatory compliance and ensure transparency in international trade transactions.
Furthermore, a new, simplified documentation process has been introduced for low-value transactions.
Individuals undertaking transactions up to $2,000 (or its equivalent in naira) and corporate entities with transactions up to $5,000 can now rely on basic Know-Your-Customer (KYC) and Anti-Money Laundering (AML) documents previously submitted to their banks. However, transactions exceeding these thresholds must comply fully with documentation requirements as stipulated in the CBN Foreign Exchange Manual and related circulars.
In addition, applicants are now expected to ensure that all regulatory documents required for the clearance of goods are readily available.
The CBN said this responsibility shift was designed to expedite trade processing and strengthen accountability among cross-border traders.
It said these adjustments were part of its ongoing efforts to promote seamless intra-African trade, drive financial inclusion, and enhance operational efficiency for Nigerians participating in cross-border transactions within the continent.
The bank said it had detailed these changes in a circular referenced TED/FEM/PUB/FPC/001/006 dated April 28, 2025, and advised banks across the country to fully adopt PAPSS for originating transactions.
It advised exporters, importers, and individuals to familiarize themselves with the new requirements and leverage the opportunities provided by PAPSS to carry out efficient, secure, and cost-effective cross-border payments within Africa.
