Nigeria’s PAPSS payments drop 53% to N5.6bn — CBN

Nigeria’s cross-border payment transactions on the Pan-African Payment and Settlement System (PAPSS) fell by 53 per cent to N5.6 billion in the first half of 2025, the Central Bank of Nigeria (CBN) has revealed in its Financial Stability Report.

According to the report, Nigerian users executed 3,246 transactions on the platform during the period, down from 4,600 in the previous half-year — a 29 per cent decline. Transaction values also dropped sharply from N11.97 billion, reflecting reduced participation by Nigerian banks and businesses in the continent-wide payment system.

PAPSS, developed by the African Export-Import Bank (Afreximbank) in partnership with the African Union, is designed to facilitate seamless real-time cross-border payments in local African currencies. The system seeks to reduce transaction costs, minimize dependence on foreign currencies, and promote intra-African trade under the African Continental Free Trade Area (AfCFTA) framework.

Nigeria continues to lead in participation, with over 22 banks connected to the platform. Major players include FirstBank, Access Bank, UBA, Zenith Bank, Stanbic IBTC, and Fidelity Bank. These institutions enable instant and cost-effective cross-border transactions, reinforcing Nigeria’s position as a central hub in Africa’s financial integration efforts.

To encourage wider usage, PAPSS introduced the PAPSSCARD last year in collaboration with Afreximbank and Mercury Payment Services. The card is aimed at enabling secure and affordable retail payments across African borders while keeping the processing and data within the continent — a move that counters the traditional reliance on international payment networks, which often incur high fees and result in the loss of critical financial data.

Speaking at the Abuja launch of the PAPSSCARD, CEO Mike Ogbalu III described it as a “major step toward Africa’s financial independence.” He highlighted that the card is more than just a payment tool; it is a symbol of the continent’s capacity to develop home-grown solutions that align with Africa’s trade patterns, lifestyles, and economic growth ambitions.

Ogbalu further emphasized that initiatives like PAPSS and PAPSSCARD are crucial for building a stronger African financial ecosystem. By keeping transaction value and data within Africa, the continent retains greater control over its economic resources, strengthens financial inclusion, and supports local businesses engaging in cross-border trade.

As African economies continue to integrate under AfCFTA, platforms like PAPSS are expected to play a key role in driving intra-African trade, reducing dependency on foreign currencies, and creating a more robust, transparent, and efficient payment infrastructure. For Nigeria, maintaining leadership in the system not only boosts its financial sector but also strengthens the country’s influence in shaping continental trade policies and digital payment innovations.

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