The Central Bank of Nigeria issued a circular revising documentation requirements for transactions conducted through the Pan-African Payment & Settlement System (PAPSS) in Nigeria, with immediate effect. The update introduces simplified documentation for low-value transactions and changes how authorized dealer banks source foreign exchange for PAPSS settlement. For individuals and corporates, transactions up to USD2,000 and USD5,000 equivalent in NGN, respectively, may now rely on basic know-your-customer and anti-money laundering documents already provided to authorized dealer banks, while transactions above these thresholds must continue to meet the full documentation requirements under the Central Bank of Nigeria Foreign Exchange Manual and related circulars. Applicants remain responsible for ensuring regulatory documents required for clearance of goods are available to relevant government agencies, authorized dealer banks may source foreign exchange for PAPSS settlements through the Nigerian Foreign Exchange Market without recourse to the CBN, and export proceeds repatriated via PAPSS must be certified by the relevant processing banks. The CBN urged banks to adopt PAPSS and begin originating transactions under the revised requirements, and encouraged exporters, importers and individuals to familiarise themselves with the updated rules.
Central Bank of Nigeria 2025-04-28
Central Bank of Nigeria revises PAPSS documentation rules with simplified KYC for transactions up to USD2,000 and USD5,000
The Central Bank of Nigeria revised documentation for the Pan-African Payment & Settlement System (PAPSS), simplifying low-value transactions. Individuals and corporates can use basic KYC and AML documents for transactions up to USD2,000 and USD5,000 equivalent in NGN, respectively, while higher amounts need full documentation. Authorized dealer banks can source foreign exchange for PAPSS settlements through the Nigerian Foreign Exchange Market, and export proceeds must be certified by processing banks.