CBN Unveils New Policy to Boost Intra-African Trade with Easier Cross-Border Payments
By Nasir Dambatta
In a bold move to drive seamless trade across African borders, the Central Bank of Nigeria (CBN) has announced revised documentation guidelines for transactions via the Pan-African Payment and Settlement System (PAPSS), a revolutionary financial platform designed to eliminate barriers in cross-border payments.
The new policy, effective immediately, simplifies documentation for low-value transactions—up to $2,000 for individuals and $5,000 for corporates—requiring only basic Know Your Customer (KYC) and Anti-Money Laundering (AML) documents previously submitted to their banks. Higher-value transactions will still adhere to existing foreign exchange guidelines.
“This initiative is part of our broader commitment to financial inclusion, operational efficiency, and the actualisation of the African Continental Free Trade Area (AfCFTA) goals,” the apex bank declared in a circular released on April 28, 2025.
PAPSS, launched in 2022 by Afreximbank in partnership with the African Union and the AfCFTA Secretariat, enables instant payments across Africa in local currencies. By cutting reliance on third-party currencies and reducing transaction costs, PAPSS is considered a game-changer in Africa’s journey toward economic integration.
The CBN also announced that Authorized Dealer Banks can now source foreign exchange for PAPSS settlements from the open Nigerian FX market—removing the previous requirement of going through the CBN. Additionally, export proceeds repatriated through PAPSS must be certified by processing banks.
The central bank called on all banks, exporters, importers, and individuals to embrace the revised system, which is expected to boost Nigeria’s trade volume and facilitate faster business dealings across the continent.
