The Pan-African Payment and Settlement System has welcomed a new circular from the Central Bank of Nigeria, which simplifies the documentation requirements for PAPSS transactions in the country.

This move is expected to enhance the efficiency of cross-border payments and further promote financial integration across Africa.

By working with central banks, PAPSS helps minimize payment risks and provides a secure payment and settlement service across the continent.

Commercial banks and licensed payment service providers across the region can now connect as ‘participants’ in the system.

PAPSS was first introduced by Afreximbank and the African Union at the 12th Extraordinary Summit of the AU in Niamey in 2019, where it was adopted as a key tool for implementing the African Continental Free Trade Agreement.

The policy announced on April 28, 2025 by the CBN, sets, a statement by the PAPSS management, set the stage for faster, more cost-effective, and more inclusive participation by Nigerians and Nigerian businesses, especially Small and Medium Enterprises involved in intra-African commerce under the AfCFTA.

The Chief Executive of PAPSS, Mike Ogbalu III, praised the CBN’s decision as a transformative milestone. He highlighted that this bold policy initiative will make it easier than ever for banks, businesses, and entrepreneurs to connect, trade, and process payments.

“Today marks a transformational milestone for Nigerian commerce and for the larger vision of African economic integration. We are grateful to the Central Bank of Nigeria for its unwavering support and vision in propelling Nigeria towards seamless intra-African payments under the AfCFTA.

“This bold policy move by the CBN will empower banks, businesses, and entrepreneurs to connect, trade, and pay more easily than ever before. The directive removes excess paperwork from a large number of transfers, empowering Nigerian businesses to participate more freely in the African Continental Free Trade Area by utilising our secure, local currency-based platform.

“We also expect Nigerian banks to begin integrating PAPSS into their digital platforms such as mobile apps and online banking in the near future, promoting even wider adoption.

“PAPSS is at the forefront of the African advancement towards a truly borderless African economy and achieving the ultimate goal of economic self-determination. We encourage all stakeholders across the continent to follow in Nigeria’s footsteps, embrace PAPSS, and become part of the transformation that will define the way Africa does payments and accelerate the realisation of the African Continental Free Trade Area goals,” he stated.

The organization stated that with the new announcement, individuals and businesses in Nigeria will now be able to make PAPSS transactions more efficiently, with fewer delays caused by paperwork.

Only basic KYC (Know Your Customer) and AML (Anti-Money Laundering) documents are required for clearance of payments under $2,000 (for individuals) and $5,000 (for corporates) per month, making it easier for Nigerian SMEs to trade across Africa under the AfCFTA, with fewer heavy documentation barriers than ever before, it added.

The announcement also enables commercial banks to source foreign exchange for PAPSS transactions through Nigeria’s Foreign Exchange market.

“As PAPSS continues to expand across Africa — with 16 countries, 14 payment switches, and more than 150 commercial banks now connected, including 22 banks in Nigeria — the streamlined requirements will eliminate barriers and encourage broader use of our secure, instant, local currency-based platform,” the statement added.