From Adanna Nnamani, Abuja
The Central Bank of Nigeria (CBN) has announced a revision to the documentation requirements for transactions conducted through the Pan-African Payment and Settlement System (PAPSS) in Nigeria.
In a circular on Monday, which was signed by its Ag. Director, Corporate Communications, Hakama Ali, the apex bank said the review is part of its efforts to enhance intra-African trade, financial inclusion, and operational efficiency for Nigerians engaging in cross-border payments within Africa.
PAPSS, launched in January 2022 by Afreximbank in partnership with the African Union and the African Continental Free Trade Area (AfCFTA) Secretariat, is a centralized platform that facilitates instant, secure, and efficient cross-border transactions in local currencies across the continent.
It aims to minimize dependence on third-party currencies, lower transaction costs, and support the growth of trade under the AfCFTA framework.
According to the CBN, the key changes now effective include simplified documentation requirements for low-value transactions.
Individuals transacting up to USD2,000 equivalent in naira, and corporates transacting up to USD5,000 equivalent, may now rely on basic Know Your Customer (KYC) and Anti-Money Laundering (AML) documents previously provided to their Authorized Dealer Banks (ADBs).
For transactions exceeding these thresholds, full documentation requirements as outlined in the CBN Foreign Exchange Manual and related circulars will still apply.
The CBN also noted that applicants remain responsible for ensuring all necessary regulatory documents are in place to facilitate the clearance of goods as mandated by relevant government agencies.
Furthermore, the circular stated that ADBs are now permitted to source foreign exchange for PAPSS settlements through the Nigerian Foreign Exchange Market without recourse to the CBN. It also stipulated that all export proceeds repatriated through PAPSS must 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. In addition, CBN encourages exporters, importers, and individuals to familiarise themselves with the new requirements and leverage PAPSS for cross-border transactions within Africa.
For further details, please refer to the official circular on the CBN website,” the document added.
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