Nigerian churches drive rising cross-border payments across Africa, PAPSS says

Nigeria’s churches are playing an increasingly significant role in driving cross-border transactions across Africa, according to the Chief Executive Officer of the Pan-African Payment and Settlement System (PAPSS), Mike Ogbalu.

Speaking on Friday at a media chat, Ogbalu revealed that PAPSS data shows a growing volume of payments flowing into Nigeria from worshippers across the continent who remit tithes, offerings, and other church-related contributions to Nigerian religious organisations.

The disclosure highlights an emerging trend in Africa’s evolving cross-border payments landscape, where digital and local-currency settlement systems are gradually reducing dependence on the U.S. dollar and lowering transaction costs.

What they are saying

According to Ogbalu, religious payments have become a notable component of transaction activity on the PAPSS platform, reflecting the influence of Nigerian churches beyond the country’s borders.

• “One other thing, which is more like a fun fact, is that we are also seeing the power of Nigerian churches. There are a lot of faithful across Africa who pay tithes and other contributions (to churches in Nigeria),” he said.

He noted that PAPSS has recorded such transactions from multiple African countries, including Kenya, underscoring the continental reach of Nigerian religious institutions.

• “We are beginning to see that many people follow Nigerian churches across the length and breadth of Africa. A lot of people are now giving their tithes and offerings,” Ogbalu added.

Nigeria-Rwanda transactions surge

Beyond church-related remittances, Ogbalu said PAPSS continues to record strong transaction volumes between Nigeria and several African countries, including Ghana, Kenya and Rwanda.

He disclosed that payment flows between Nigeria and Rwanda are now approaching, and in some instances exceeding, those between Nigeria and Ghana.

• “Most interestingly, Nigeria and Rwanda are almost exceeding Nigeria and Ghana in transaction volumes. That was a bit surprising because historically there has always been significant business activity between Nigeria and Ghana,” he said.

The PAPSS CEO also pointed to growing transaction corridors linking Nigeria with Cameroon, Niger Republic and Benin Republic, driven largely by trade in Nigerian goods across West Africa.

• “There is a lot of flow of transactions between Nigeria and its West African neighbours,” he said.

AfCRA could retain more African capital

Commenting on the upcoming launch of the African Credit Rating Agency (AfCRA) in Mauritius on October 7, Ogbalu said African-led institutions could help address longstanding concerns about how the continent is assessed by international rating agencies.

According to him, more context-driven credit assessments could encourage greater retention of African capital within the continent.

• “When African rating agencies are reviewing African institutions, we begin to see changes where more of Africa’s capital remains within the continent and supports development needs,” he said.

PAPSS explores stablecoin integration

Ogbalu also disclosed that PAPSS is exploring ways to support stablecoins and other digital currencies within its payments ecosystem.

Describing digital assets as technologies that are “here to stay,” he praised the regulatory efforts of the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) and hinted that PAPSS could make announcements on the initiative in the near future.

He added that PAPSS currently operates in 30 African countries and aims to expand to about 38 countries by the end of 2026.

South Africa remains the only major African economy yet to join the platform, although discussions with authorities there are progressing positively.

Get up to speed

Ogbalu’s comments come amid forecasts of rapid growth in Africa’s cross-border payments industry.

A recent report by venture capital firm Oui Capital projected that the market could expand from $329 billion in 2025 to $1 trillion by 2035, driven by fintech innovation, increased intra-African trade and wider adoption of mobile money solutions.

The report also estimated that Africa loses about $5 billion annually due to foreign exchange inefficiencies, multiple currency conversions and inadequate payment interoperability.

It highlighted the need for platforms to streamline transactions across the continent.

What you should know

The growing volume of church-related remittances and trade payments flowing through PAPSS underscores the increasing integration of African economies and communities.

Recently, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, 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.

Oyedele highlighted the need for more efficient payment infrastructure to support intra-African trade under the African Continental Free Trade Area (AfCFTA).