Cbn Simplifies Papss Transaction Requirements To Boost Intra-african Trade

The Central Bank of Nigeria CBN has introduced significant updates to the documentation requirements for transactions. This is intended to be carried out via the Pan-African Payment Settlement System also known as PAPSS. This important policy shift is aimed at making cross-border payments within Africa faster, more efficient, and more accessible for Nigerians. The announcement is in a circular dated April 28, 2025 TED/FEM/PUB/FPC/001/006, signed by Hakama Sidi Ali Ag. Director, Corporate Communications at the Central Bank of Nigeria.

The document shows the Apex Bank in Nigeria's broader commitment to deepening intra-African trade, promoting financial inclusion, and driving operational efficiency across the financial sector.

PAPSS is an initiative of Afreximbank in partnership with the African Union and the African Continental Free Trade Area AfCFTA Secretariat. It provides a centralised platform that enables instant, secure, and cost-effective cross-border transactions across the African continent. It allows payments in local currencies, PAPSS significantly reduces reliance on third-party currencies and lowers transaction costs. This key step is essential in realising the full potential of AfCFTA.

Under the new guidelines, individuals and businesses will benefit from simplified procedures for low-value transactions. Customers making transactions up to USD 2,000 individuals and USD 5,000 corporates equivalent in Naira can now use basic Know Your Customer KYC and Anti-Money Laundering AML documents already provided to their Authorised Dealer Banks ADBs.

For transactions exceeding these thresholds, full documentation as specified in the CBN Foreign Exchange Manual and related circulars remains mandatory. Additionally, customers are responsible for ensuring that all regulatory documents required for the clearance of goods by other government agencies are complete and available. These changes are designed to make cross-border payments smoother while maintaining regulatory compliance.