Nigeria’s use of the Pan‑African Payment and Settlement System (PAPSS), a continent‑wide payments platform developed by the African Export‑Import Bank (Afreximbank) and the African Union, fell sharply in the first half of 2025.
The Central Bank of Nigeria (CBN), Nigeria’s apex bank, disclosed the decline in its Financial Stability Report for the period ending June 30, 2025.
Okay News reports that Nigerian participants processed N5.6 billion worth of cross‑border transactions on PAPSS in H1 2025, a 53% drop from the previous half‑year. The platform recorded 3,246 transactions, down 29% from 4,600 in the preceding six months.
The CBN’s bulletin showed transaction value fell from N11.97 billion in the prior half‑year, signalling a marked pullback by Nigerian users from the intra‑African payment rail. Analysts say the decline may reflect lower trade flows, currency preferences, or slower adoption among corporate and retail users.
PAPSS was created to enable real‑time, low‑cost cross‑border payments in local currencies across Africa, supporting the African Continental Free Trade Area (AfCFTA). By allowing instant payment, pre‑funding and net settlement, the system aims to reduce dependence on hard currencies and lower transaction costs for businesses and consumers.
Nigeria remains the top participating country on PAPSS, with more than 22 Nigerian banks integrated into the system. Major participants include First Bank of Nigeria Ltd., UBA Group, Access Bank Plc, Zenith Bank Plc, Ecobank Nigeria, and others that facilitate instant cross‑border transfers in local currency.
In 2024, PAPSS, Afreximbank and Mercury Payment Services introduced the PAPSSCARD, a retail payment card designed to route transactions within Africa. PAPSSCARD aims to keep transaction value and data on the continent, cutting fees and reducing reliance on global card networks.
At the Abuja launch, Mike Ogbalu III, CEO of PAPSS, described the card as “more than just a payment tool,” calling it a symbol of financial independence and a practical, home‑grown solution for African trade and payments. He said the initiative aligns with how the continent trades, lives and grows.
Policymakers and banks will watch whether renewed outreach, merchant acceptance and user education can reverse the H1 decline. Restoring momentum on PAPSS could boost intra‑African trade and help Nigeria capture more value from regional commerce.
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