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.
According to a press release, the review is part of the, “CBN’s ongoing commitment to foster seamless intra-African trade, financial inclusion, and operational efficiency for Nigerians engaging in cross-border payments within Africa.”
Citing a circular on the subject which the apex bank issued to Authorised Dealer Banks and the General Public, on Monday, that outlined the key changes to the documentation requirements associated with PAPSS transactions, the statement said that, henceforth, for simplified documentation for low-value transactions, “Customers may now use basic Know-Your-Customer (KYC) and Anti-Money Laundering (AML) documents provided to their Authorized Dealer Banks (ADBs) for low-value transactions (USD2,000 and USD 5,000 equivalent in naira for Individuals and corporate, respectively).”
It, however, said that: “For transactions above the thresholds, all documentation as stipulated in the CBN Foreign Exchange Manual and related circulars remain mandatory.”
On responsibility of applicants, the statement said: “Applicants are responsible for ensuring all regulatory documents are available to facilitate the clearance of goods, as required by relevant government agencies.”
The statement also said that Authorized Dealer Banks, “may now source foreign exchange for PAPSS settlements through the Nigerian Foreign Exchange Market (without recourse to the CBN).”
In addition, it stated that: “All export proceeds repatriated via PAPSS shall be certified by the relevant processing banks.”
The CBN in the statement urged all banks to adopt PAPSS and commence originating transactions in line with the new policy. The apex bank also encouraged exporters, importers, and individuals to familiarise themselves with the new requirements and leverage PAPSS for cross-border transactions within 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 centralized payment and settlement platform that enables instant, secure, and efficient cross-border transactions throughout Africa. By facilitating payments in local currencies, PAPSS minimizes reliance on third-party currencies, reduces transaction costs, and supports the rapid expansion of trade under the AfCFTA.
