The Federal Government has called for the development of a cross-border payment card that would allow transactions between African currencies without requiring conversion through the U.S. dollar or other third-party currencies.

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, made the proposal while receiving a delegation from Mastercard in Abuja on Tuesday, highlighting the need for more efficient payment infrastructure to support intra-African trade under the African Continental Free Trade Area (AfCFTA).

Currently, most cross-border card transactions within Africa are routed through intermediary currencies such as the U.S. dollar, resulting in multiple conversions and additional transaction costs.

For example, when a Nigerian cardholder makes a purchase in Ghana, the transaction is typically converted from Ghanaian cedis to U.S. dollars before being converted again into naira, using prevailing exchange rates.

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What they are saying

Speaking during the meeting, Oyedele said Africa’s payment ecosystem has an opportunity to leapfrog traditional systems by enabling direct currency-to-currency settlements across the continent.

  • “We hope that, for example, we have a payment card that you can use to pay from naira to Kenyan shillings, to South African rand, without a third currency. And we know you can make it possible,” he told the Mastercard delegation.

According to the minister, eliminating the need for intermediary currencies would improve efficiency and strengthen economic integration among African countries.

Oyedele also urged Mastercard to play a leading role in expanding access to credit cards in Nigeria, noting that access to consumer credit remains limited even among high-income earners and senior government officials.

  • “Based on my own personal experience, one of the areas where we hope you will take the lead is just making credit cards available to Nigerians. It is difficult, even for someone at my level, to get a credit card,” he said.

More insights

While acknowledging the progress made by Nigeria’s fintech industry, Oyedele said there remains significant room for expansion.

He noted that Nigeria accounts for five of Africa’s nine fintech unicorns, underscoring the country’s growing influence in the continent’s digital finance ecosystem.

  • “Our fintech sector is quite developed, but we know that we can do much better. We can be much bigger,” he said.
  • “It is interesting to know that Africa has nine unicorns, and five of them are in Nigeria. So we know that the possibilities are even bigger.”

He assured fintechs of the government’s commitment to creating a stable and investor-friendly environment through policy consistency and regulatory support.

  • “We welcome you to Nigeria. We want you to do more, and we are willing, from the government’s side, to work with you,” he added.

What you should know

The call comes as Africa’s cross-border payments industry is projected to experience significant expansion over the next decade.

According to a report by venture capital firm Oui Capital, the continent’s cross-border payments market is expected to grow from $329 billion in 2025 to approximately $1 trillion by 2035, representing a compound annual growth rate (CAGR) of 12%.

The projected growth is expected to be driven by increasing fintech adoption, rising mobile money penetration, expanding intra-African trade and the implementation of AfCFTA.

However, despite the market’s growth potential, the report notes that cross-border payments across Africa remain hampered by fragmented financial systems, multiple currency conversions, high transaction costs and settlement inefficiencies.

Industry stakeholders believe that direct settlement mechanisms between African currencies could significantly reduce these frictions, lower costs for businesses and consumers, and accelerate economic integration across the continent.

The Federal Government’s proposal aligns with broader efforts to deepen intra-African trade and develop financial infrastructure capable of supporting a more connected African economy.