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The Central Bank of Nigeria (CBN) has introduced new guidelines for Pan-African Payment and Settlement System (PAPSS) transactions involving export proceeds. According to the circular, individuals and corporations dealing in exports exceeding $2,000 and $5,000, respectively, will need to adhere to stricter documentation protocols.
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The CBN stated, “For transactions above USD 2,000 and USD 5,000 for individual and corporate, respectively, all documentation requirements stipulated in the CBN Foreign Exchange Manual and extant circulars shall apply.” However, for transactions under the specified amounts, basic Know Your Customer and Anti-Money Laundering documentation already provided to Authorized Dealer Banks will suffice
The CBN also emphasised the importance of regulatory compliance, stating, “Applicants shall be responsible for ensuring that regulatory documents are made available to facilitate the clearance of goods (as may be requested by the relevant government agencies).” This ensures that all necessary paperwork is in place for the smooth clearance of goods across Nigeria’s borders.
In another significant change, the central bank has allowed authorised dealer banks to source foreign exchange for PAPSS transactions directly through the Nigerian foreign exchange market, “without recourse to the CBN”. This move is expected to enhance the flexibility and efficiency of transactions, reducing reliance on the central bank.
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Jonathan Nwokpor
