Nigeria’s PAPSS Cross-Border Transactions Drop 53% to ₦5.6bn

Nigeria’s use of the Pan-African Payment and Settlement System (PAPSS) declined sharply in the first half of 2025, with the value of cross-border payments processed through the platform falling by 53 per cent to ₦5.6 billion.

Data from the Central Bank of Nigeria shows that Nigerian participants completed 3,246 transactions on the PAPSS platform during the period, representing a 29 per cent drop compared with the previous half-year. Transaction value also declined significantly from ₦11.97 billion, pointing to reduced activity by Nigerian users on the continent-wide payment system.

The contraction highlights a pullback in cross-border settlement volumes despite Nigeria’s position as the largest participating country on the platform.

PAPSS was developed by the African Export-Import Bank in partnership with the African Union to enable real-time, low-cost cross-border payments in local currencies across Africa. The system is designed to reduce reliance on hard currencies, lower transaction costs, and support intra-African trade under the African Continental Free Trade Area framework.

Nigeria remains the most active participant in PAPSS by institutional coverage, with more than 22 local banks integrated into the system. These banks facilitate instant cross-border payments in local currency, allowing customers to transact seamlessly with counterparts across participating African countries.

Participating Nigerian banks include a broad mix of commercial, merchant, and non-interest lenders, reflecting the system’s growing footprint across the domestic banking sector.

In an effort to stimulate usage and deepen retail adoption, PAPSS, in collaboration with African Export-Import Bank and Mercury Payment Services, recently introduced the PAPSSCARD. The card is designed to enable fast, secure, and affordable retail payments across African borders.

Currently, most card-based payments in Africa are routed through global payment networks, resulting in higher transaction costs and limited control over payment data. PAPSSCARD processes transactions entirely within the continent, allowing value, data, and economic benefits to remain in Africa.

Industry stakeholders have described the card as a significant step in strengthening Africa’s financial infrastructure and promoting payment sovereignty. It is positioned as part of a broader effort to develop home-grown solutions that align with the continent’s trade patterns, economic realities, and long-term growth ambitions.

Despite the recent decline in transaction volumes, PAPSS remains a central pillar of Africa’s push for deeper financial integration and reduced barriers to cross-border trade, with expectations that adoption will improve as infrastructure, awareness, and confidence in the system continue to grow.