The Central Bank of Nigeria (CBN) on Monday introduced new compliance measures mandating full documentation of export proceeds exceeding $2,000 for individuals and $5,000 for corporate entities for transactions processed through the Pan-African Payment and Settlement System (PAPSS).
The directive reinforces the apex bank’s commitment to strengthening foreign exchange monitoring and ensuring transparency in cross-border trade.
Under the new framework, all transactions above the stipulated thresholds must meet documentation standards outlined in the CBN Foreign Exchange Manual and existing regulations.
The CBN stated that basic Know Your Customer and Anti-Money Laundering documents will remain sufficient for transactions below $2,000 for individuals and $5,000 for corporates.
However, higher-value transactions must now be fully supported by regulatory paperwork to facilitate the clearance of goods through relevant government agencies.
In a move aimed at increasing flexibility, the CBN also authorized banks to source foreign exchange directly from the Nigerian Foreign Exchange Market for the settlement of PAPSS transactions without seeking approval from the apex bank.
Furthermore, the directive requires processing banks to certify all export proceeds repatriated under the PAPSS platform, adding an additional layer of scrutiny to the repatriation process.
The latest measures signal a tightening of compliance standards around Nigeria’s cross-border payment system as authorities seek to stabilize the foreign exchange market and reinforce oversight of export earnings.
Industry analysts believe the decision to decentralize forex sourcing for PAPSS settlements could enhance transaction speed and reduce bottlenecks while the documentation requirement is expected to curb underreporting of export proceeds.
Financial institutions and exporters have been advised to review their transaction processes to align with the updated regulatory expectations and avoid disruptions in payment settlements.
