The Central Bank of Nigeria’s April CBNUPDATE bulletin highlighted a package of recent policy communications and supervisory actions, led by revised documentation requirements for transactions through the Pan-African Payment and Settlement System (PAPSS) and a renewed compliance push across bureau de change operators and banks. It also reiterated key parameters of the ongoing banking-sector recapitalisation programme and reported improvements in external buffers and the balance of payments. Under a 28 April 2025 circular, individuals and businesses making PAPSS payments up to USD 2,000 and USD 5,000 respectively can rely on standard Know Your Customer and Anti-Money Laundering documentation already held by their banks, while larger transactions still require full documentation under the Central Bank of Nigeria Foreign Exchange Manual and prior directives. Authorised dealer banks can source foreign exchange for PAPSS settlements directly from the Nigerian Foreign Exchange Market, and export proceeds repatriated via PAPSS must be certified by processing banks. Separately, the Central Bank of Nigeria launched “mystery shopping” exercises to test Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Financing obligations by bureau de change operators, and reminded deposit money banks and other financial institutions to keep sanctions compliance programmes aligned with legal and regulatory requirements, warning that breaches may attract enforcement. On recapitalisation, a regulatory presentation set minimum paid-up capital thresholds at NGN 500 billion for international banks, NGN 200 billion for national banks and NGN 50 billion for regional and merchant banks, measured as paid-up capital plus share premium only, within an implementation window running from April 2024 to March 2026. The bulletin also cited a 2024 balance of payments surplus of USD 6.83 billion and net foreign exchange reserves of USD 23.11 billion at end-2024, alongside gross reserves of about USD 40.2 billion.
Central Bank of Nigeria 2025-05-16
Central Bank of Nigeria eases Pan-African Payment and Settlement System documentation and begins mystery shopping AML checks
The Central Bank of Nigeria's April bulletin outlined revised documentation requirements for transactions via the Pan-African Payment and Settlement System (PAPSS) and emphasized compliance for bureau de change operators and banks. It detailed recapitalisation thresholds for banks and reported a 2024 balance of payments surplus of USD 6.83 billion and net foreign exchange reserves of USD 23.11 billion. The bulletin also highlighted exercises to test compliance with Anti-Money Laundering and related obligations.