THE Central Bank of Nigeria (CBN) has announced a significant review of the documentation requirements for transactions conducted through the Pan-African Payment & Settlement System (PAPSS) in Nigeria.
This initiative, the apex bank said, is part of its ongoing commitment to foster seamless intra-African trade of a $3.3 billion market share, financial inclusion, and operational efficiency for Nigerians engaging in cross-border payments within Africa.
In a circular dated Monday, April 28, 2025, and signed by its Acting Director of Communications, the CBN introduced simplified documentation for low-value PAPSS transactions, allowing individuals and corporates to use basic Know Your Customer (KYC) and Anti-Money Laundering (AML) documents for transactions up to $ 2,000 and $5,000, respectively.
“The higher-value transactions will still require full documentation as outlined in the CBN Foreign Exchange Manual,” the CBN said.
The apex bank also stated that authorised dealer banks (ADBs) can now source foreign exchange for PAPSS settlements directly from the Nigerian Foreign Exchange Market, without relying on the CBN, adding that,” Export proceeds repatriated via PAPSS must be certified by the processing banks.
It further urged all banks, exporters, importers, and individuals to familiarize themselves with the new guidelines and leverage PAPSS for seamless cross-border transactions across Africa.
Launched by Afreximbank in partnership with the African Union and the African Continental Free Trade Area (AfCFTA) Secretariat in January 2022, PAPSS serves as a centralised payment and settlement platform that enables instant, secure, and efficient cross-border transactions throughout Africa.
The ICIR reports that by facilitating payments in local currencies, PAPSS minimises reliance on third-party currencies, reduces transaction costs, and supports the rapid expansion of trade under the AfCFTA.
The apex bank’s review of policy signals a push to fully integrate Nigerian banks and businesses into Africa’s evolving payment ecosystem.
For some economic watchers, the adoption of PAPSS is expected to make cross-border payments more accessible, efficient, and cost-effective for Nigerian businesses and individuals engaging within the African continent.
“It is estimated that the continent would be saving about $5 billion in payment transactions costs with the adoption of the PAPSS platform,” a development economist, Celestine Okeke told The ICIR.
The ICIR reported in February 2022 that the pan-African payment platform was anticipated to help reduce dollarisation, saving $5 billion on transaction costs for Africans.
At the time, analysts told The ICIR that PAPSS would facilitate trade beyond borders without resorting to the dollar as an intermediary currency.
“PAPSS was a major positive development for trade facilitation and trade integration, especially within the context of AfCTA,” an economist, Muda Yusuf, who heads the Centre for the Promotion of Private Enterprises (CPPE), told The ICIR.
“It is thus bringing a significant value to the African Continental Free Trade Area. An efficient and seamless payments system is necessary for the acceleration of the economic integration process,” he added.
He stressed that the ECOWAS common currency agenda would complement the AFREXIM initiative.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.