Nigeria recorded ₦5.6 billion in cross-border transactions on the Pan-African Payment and Settlement System (PAPSS) in the first half of 2025, marking a 53% decline from the ₦11.97 billion recorded in the same period of 2024. The figures were disclosed by the Central Bank of Nigeria (CBN) in its Financial Stability Report as of June 30, 2025.
The report also showed that Nigerian participants completed 3,246 transactions on the platform in H1 2025, a 29% drop from the 4,600 transactions recorded in H1 2024. Industry observers say this trend suggests a noticeable pullback by Nigerian users from the continent-wide payment system.
PAPSS, an initiative of Afreximbank in collaboration with the African Union, was designed to enable real-time, low-cost cross-border payments in local currencies across Africa. The goal is to reduce reliance on foreign currencies, lower transaction costs, and promote intra-African trade under the African Continental Free Trade Area (AfCFTA).
Interestingly, Nigeria remains the largest participant on the platform, with over 22 Nigerian banks integrated into the system. These include major institutions such as First Bank, UBA, Access Bank, Zenith Bank, Fidelity Bank, Union Bank, Stanbic IBTC, Sterling Bank, Wema Bank, Jaiz Bank, and others, all positioned to facilitate instant cross-border settlements in local currencies.
To further improve adoption, PAPSS, Afreximbank, and Mercury Payment Services recently introduced the PAPSSCARD, a retail payment card aimed at keeping transaction value and data within Africa rather than routing payments through global systems. PAPSS officials described the card as a step toward financial independence and a practical solution for businesses, banks, and individuals across the continent.
Despite these efforts, the sharp decline in Nigeria’s PAPSS transaction value and volume raises questions about adoption challenges, user confidence, and the broader realities of cross-border trade and payments within Africa.
