The Central Bank of Nigeria has issued a directive requiring all banks in the country to integrate the Pan-African Payment and Settlement System and begin processing transactions under the new framework.

The move is aimed at enhancing intra-African trade and streamlining cross-border payment efficiency.

In a statement released on Monday, the CBN’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, said the mandate follows a comprehensive review of documentation requirements for PAPSS transactions in Nigeria.

The circular, referenced TED/FEM/PUB/FPC/001/006 and dated April 28, 2025, detailed the reforms, which are expected to encourage participation from banks, exporters, importers, and individual customers.

The CBN’s push for PAPSS adoption aligns with broader efforts to strengthen economic integration and financial connectivity within the continent.

Launched in January 2022 by Afreximbank in collaboration with the African Union and the AfCFTA Secretariat, the Pan-African Payment and Settlement System is a centralized platform designed to facilitate instant, secure, and efficient cross-border transactions across Africa.

PAPSS enables payments in local currencies, reducing dependence on third-party currencies like the U.S. dollar, lowering transaction costs, and supporting the growth of trade under the African Continental Free Trade Area.

According to the CBN, one of the major highlights of the new policy is the simplification of documentation for low-value transactions. Individuals conducting transactions up to $2,000 or its naira equivalent, and corporates up to $5,000 equivalent, can now use basic Know Your Customer and Anti-Money Laundering documents previously submitted to their Authorized Dealer Banks

For transactions exceeding these thresholds, all documentation requirements outlined in the CBN Foreign Exchange Manual and other applicable circulars remain mandatory.

The circular further emphasizes that applicants must ensure the submission of all necessary regulatory documents to the appropriate government agencies for goods clearance.

In a bid to encourage market-driven forex sourcing, the CBN also announced that Authorized Dealer Banks may now obtain foreign exchange for PAPSS settlements directly from the Nigerian Foreign Exchange Market, without needing to approach the CBN for funding.

In addition, the CBN mandated that all export proceeds repatriated via PAPSS must be duly certified by the processing banks to ensure compliance with existing export regulations.

The apex bank urged exporters, importers, and individuals to familiarise themselves with the revised requirements and leverage PAPSS for their cross-border transactions, noting that the initiative will enhance financial inclusion and operational efficiency.

The full circular and additional details on the revised documentation requirements are available on the official CBN website.

This latest move by the CBN underscores its commitment to fully integrating Nigerian banks and businesses into Africa’s evolving payment ecosystem.