President Bola Tinubu, on Friday, urged African countries to embrace the Pan-African Payment and Settlement System (PAPSS) for deeper financial integration across the continent.
He made the call at the Afreximbank 32nd Annual Meetings, attended by Nairametrics.
He urged all African countries to embrace the technology.
“I urge all Africans, all African nations, to embrace PAPSS because deeper financial integration strengthens our collective resilience,” he said.
President’s Remarks
Highlighting Oramah’s impact on Nigeria, Tinubu stated that the nation has benefited from over $52 billion in support directed into energy, agriculture, infrastructure, manufacturing, healthcare, and creative industry sectors, citing flagship projects such as the Dangote Refinery and the African Medical Center of Excellence.
- He maintained that this development embodies confidence in Nigeria’s future and Africa’s potential, adding that the partnership that established Afreximbank excels beyond capital.
- The president added that Nigeria’s formal approval of the Pan-African Payment and Settlement System (PAPSS) is a significant step toward financial independence.
He thanked Oramah for his leadership in the initiative, saying PAPSS enables cross-border trade in local currencies, reduces reliance on foreign exchange, and promotes economic stability.
He also called on Africa to strengthen financial support to Afreximbank to scale its transformational impact.
- He said a united and purposeful Africa can define its destiny.
“Together, we are launching the Africa Energy Bank in Abuja, with $5 billion in initial capital to finance Africa’s energy transition, leveraging gas, renewables, and clean technologies,” he added.
- He assured that Nigeria’s collaboration with Africa is expanding in both scope and ambition.
More Insight on PAPSS
In his remarks earlier, Oramah said one of the greatest barriers to intra-African trade has been the lack of efficient cross-border payment systems, which have caused leakages of around $5 billion annually.
- He stressed that the Pan-African Payment and Settlement System (PAPSS), championed by Afreximbank in partnership with the AfCFTA Secretariat and African Union Commission (AUC), is integrating the 42 payment systems that exist in Africa, enabling real-time payments in local currencies.
“PAPSS eliminates the need for currency conversion through external intermediaries, saving billions in transaction costs annually. The system is supported by a $3 billion clearing and settlement fund from Afreximbank. PAPSS has onboarded about 160 commercial banks and operates in 16 countries, with many more underway,” he added.
- According to him, PAPSS is now beginning to gradually deliver on its fundamental purpose of serving as the continental payment rail that would foster innovation and overall continental payment efficiency.
“In this regard, an African Currency Marketplace was launched and is now fully operational. This marketplace allows for the trading of African currencies, creating a window for the repatriation of trapped funds in different African countries,” he said, highlighting that the bank recently launched PAPSS Credit and Debit Cards in partnership with Mercury and Discover.
“Holders of the cards can spend their national currencies in the 16 countries where PAPSS is enabled today. With PAPSS, distinguished ladies and gentlemen, we have opened many possibilities,” he said.
For instance, he added that with PAPSS, stakeholders can bring more liquidity to capital markets, as it will enable an Egyptian to buy stocks on the Nigerian Stock Exchange using Egyptian pounds; a Kenyan entity can issue bonds listed on the Nairobi Stock Exchange, and a Ghanaian can invest in it using Ghanaian cedis.
- He said that gradually, Africa will achieve convergence in its capital and financial markets, paving the way for a single currency one day in the future.
- He appreciated the 16 countries that have connected to PAPSS and are driving its phenomenal growth, and urged those in the process to expedite their participation.
What to Know
In April 2025, the Central Bank of Nigeria (CBN) directed all banks operating in the country to adopt the Pan-African Payment and Settlement System (PAPSS) and commence originating transactions under the new framework, as part of efforts to deepen intra-African trade and improve cross-border payment efficiency.
- The CBN’s move signaled a push to fully integrate Nigerian banks and businesses into Africa’s evolving payment ecosystem.
- By encouraging the use of PAPSS, the regulator aims to strengthen intra-African trade flows, reduce the cost and time associated with cross-border transactions, and lower Nigeria’s dependence on foreign currencies like the dollar for regional trade.
- For banks, this means adjusting their payment infrastructure to originate and process PAPSS transactions in compliance with the new documentation rules.
Exporters and importers will also benefit from faster transaction settlements in local currencies, but must ensure they comply with simplified and full documentation requirements depending on transaction size.
Overall, the adoption of PAPSS is expected to make cross-border payments more accessible, efficient, and cost-effective for Nigerian businesses and individuals engaging within the African continent.
