Nigeria’s participation in the Pan-African Payment and Settlement System (PAPSS) recorded a sharp decline in the first half of 2025.
The value of cross-border transactions processed through the platform fell by 53 per cent to N5.6 billion, according to the Central Bank of Nigeria’s (CBN) Financial Stability Report for June 30, 2025.
The number of transactions also dropped 29 per cent, with Nigerian participants settling 3,246 payments compared with 4,600 in the previous half-year. Transaction value declined from N11.97 billion, reflecting a noticeable pullback by Nigerian users from the continent-wide payment platform.
PAPSS, developed by the African Export-Import Bank (Afreximbank) in collaboration with the African Union, enables real-time, low-cost cross-border payments in local currencies. The system supports instant payment, pre-funding, and net settlement, aiming to reduce dependence on hard currencies, lower transaction costs, and boost intra-African trade under the African Continental Free Trade Area (AfCFTA).
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Nigeria is the top participating country, with over 22 banks integrated into PAPSS. These include First Bank of Nigeria, UBA Group, Access Bank, Stanbic IBTC, Sterling Bank, Wema Bank, Keystone Bank, LOTUS Bank, ProvidusBank, Polaris Bank, Union Bank, Jaiz Bank, Zenith Bank, Fidelity Bank, Optimus Bank, Coronation Merchant Bank, Parallex Bank, TAJBank, FSDH Merchant Bank, Ecobank Nigeria, FBNQuest, and Unity Bank.
Last year, PAPSS, in collaboration with Afreximbank and Mercury Payment Services, introduced the PAPSSCARD to facilitate fast, secure, and affordable retail payments across African borders. Unlike most African card payments that are routed through global systems, resulting in higher fees and loss of data control, the PAPSSCARD keeps value, data, and economic benefit within Africa.
Speaking at the launch in Abuja, PAPSS CEO Mike Ogbalu III described the card as “more than just a payment tool; it is a powerful symbol of progress and a bold step towards financial independence.” He added that the card demonstrates Africa’s ability to create practical, home-grown solutions that align with how the continent trades, lives, and grows.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
