The Central Bank of Nigeria has issued a new directive mandating full documentation for all Pan-African Payment and Settlement System transactions involving export proceeds exceeding $2,000.
In a circular released by the apex bank on Monday, the move aims to tighten compliance with foreign exchange regulations and ensure proper clearance of goods.
According to the circular, “For transactions above USD2,000 and USD5,000 for individual and corporate, respectively, all documentation requirements stipulated in the CBN Foreign Exchange Manual and extant circulars shall apply.” This means individuals and corporations dealing in exports beyond the specified amounts will now need to adhere to stricter documentation protocols.
The updated rules also clarify that for transactions under $2,000 for individuals and $5,000 for corporate entities, the basic Know Your Customer and Anti-Money Laundering documentation already provided to Authorized Dealer Banks will suffice.
Additionally, the CBN stated that “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 also allowed Authorized Dealer Banks to source foreign exchange for the settlement of PAPSS transactions directly through the Nigerian Foreign Exchange Market, “without recourse to the CBN.”
This is expected to enhance the flexibility and efficiency of transactions, reducing reliance on the central bank.
The directive also reinforces the importance of certifying export proceeds under the PAPSS platform. The CBN emphasized that “all export proceeds repatriated under PAPSS shall be subject to certification by the respective processing banks.”
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