By Babajide Komolafe
Nigeria recorded N5.6 billion in cross-border transactions under the Pan-African Payment and Settlement System (PAPSS) in the first half of 2025, H1’25, a 53 percent drop from N11.97 billion recorded in the corresponding period of 2024, H1’24.
The Central Bank of Nigeria, CBN, disclosed this in its Financial Stability Report, June 30th, 2025, which also showed that Nigerian participants settled 3,246 transactions on PAPSS during the period (H1’25) representing a 29 per cent decline from the 4,600 recorded in H1’24.
Industry experts indicated that the development highlights a 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, is designed to facilitate real-time, low-cost cross-border payments in local currencies across Africa. The system enables instant payment, pre-funding and net settlement, with the aim of reducing dependence on hard currencies, lowering transaction costs and boosting intra-African trade under the African Continental Free Trade Area (AfCFTA).
Nigeria is the top participating country in PAPSS with over 22 Nigerian banks, including are integrated with the Pan-African Payment and Settlement System (PAPSS) facilitating instant cross-border payments in local currency.
These include First Bank of Nigeria Ltd., UBA Group, Access Bank Plc, Stanbic IBTC, Sterling Bank, Wema Bank Plc., Keystone Bank Limited, LOTUS Bank, ProvidusBank, Polaris Bank Ltd., Union Bank of Nigeria, Jaiz Bank Plc, Zenith Bank Plc, Fidelity Bank PLC, Optimus Bank, Coronation Merchant Bank, Parallex Bank, TAJBank Ltd., FSDH Merchant Bank, Ecobank Nigeria, FBNQuest, and Unity Bank Plc.
Last year, in a bid to enhance transactions on the platform, PAPSS in collaboration with African Export-Import Bank (Afreximbank), and Mercury Payment Services (MPS), introduced the PAPSSCARD. The card enables fast, secure, and affordable retail payments across African borders. Today, most African card payments are routed through global systems causing increased fees and loss of data control. By processing transactions entirely within the continent, PAPSSCARD keeps value, data, and economic benefit in Africa.
Speaking at the launch in Abuja, Mike Ogbalu III, CEO of PAPSS, described PAPSSCARD as a major advancement in the continent’s financial architecture, noting that it is “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 reflects Africa’s ability to create practical, home-grown solutions that align with how the continent trades, lives, and grows.
John Bosco Sebabi, Acting CEO of PAPSSCARD, added that the new payment offering will unlock benefits for a wide range of stakeholders, from corporates and banks to merchants and individuals. He said that the PAPSSCARD card would “reduce costs for public institutions, support innovation across the financial sector, and expand access to secure, modern payment tools for people and businesses across the continent.”
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