The Central Bank of Nigeria (CBN) has introduced a new directive mandating full compliance with documentation requirements for all export transactions processed through the Pan-African Payment and Settlement System (PAPSS) that exceed $2,000 for individuals and $5,000 for corporate entities.
The directive, issued on Monday via a circular to Authorized Dealer Banks, is aimed at strengthening oversight of cross-border trade payments, ensuring proper repatriation of export proceeds, and aligning with Nigeria’s broader foreign exchange regulatory framework.
According to the apex bank, any export transaction surpassing the stipulated thresholds must now fulfill all documentation obligations outlined in the CBN Foreign Exchange Manual and other relevant regulatory circulars. For transactions below these limits, existing Know Your Customer (KYC) and Anti-Money Laundering (AML) documentation held by banks will remain sufficient.
The CBN emphasized that exporters whether individuals or companies will bear full responsibility for making all required regulatory documents available to facilitate seamless goods clearance by government agencies.
In a move expected to ease pressure on the central bank and improve transaction efficiency, the CBN also authorized commercial banks to independently source foreign exchange from the Nigerian Foreign Exchange Market to settle PAPSS transactions. This marks a notable shift from the previous arrangement that relied heavily on the CBN as a forex provider.
Additionally, the circular reaffirmed that all export proceeds received through PAPSS must undergo certification by the respective processing banks, reinforcing accountability and transparency in the repatriation process.
The changes are part of Nigeria’s broader push to enhance compliance, boost foreign exchange inflows, and deepen integration within the African Continental Free Trade Area (AfCFTA) through mechanisms like PAPSS.
