The Central Bank of Nigeria (CBN) has issued a new directive mandating stricter documentation for export transactions involving proceeds above $2,000 under the Pan-African Payment and Settlement System (PAPSS).
The announcement, made via an official circular released on Monday, aims to reinforce compliance with Nigeria’s foreign exchange regulations and streamline the clearance of export goods across borders. The circular stated that all export transactions exceeding $2,000 for individuals and $5,000 for corporate entities must now comply with comprehensive documentation requirements outlined in the CBN Foreign Exchange Manual and existing circulars.
This development signals a significant tightening of the regulatory framework for cross-border trade and payment settlements. For smaller transactions under $2,000 for individuals and under $5,000 for corporations, the existing Know Your Customer (KYC) and Anti-Money Laundering (AML) documentation already provided to Authorized Dealer Banks will remain sufficient.
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Importantly, the CBN clarified that the responsibility for providing regulatory documents to facilitate the clearance of goods now rests squarely with applicants. These documents must be made available as required by relevant government agencies, thereby placing a greater burden of compliance on exporters.
In a move that may ease the pressure on the apex bank, the CBN has authorized Dealer Banks to source foreign exchange for PAPSS-related settlements directly from the Nigerian Foreign Exchange Market, without requiring intervention from the CBN. This is expected to enhance transactional efficiency and reduce bottlenecks associated with forex access.
The CBN also underscored the importance of proper certification of export proceeds handled under PAPSS. All repatriated export proceeds must be verified and certified by the respective processing banks to ensure authenticity and traceability.
This policy update is part of the CBN’s broader efforts to improve transparency, secure Nigeria’s foreign exchange inflows, and support regional trade under the African Continental Free Trade Area (AfCFTA) framework.
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