Nigerian Banks Lead Africa’s New Payment System Shift

Twenty-two Nigerian banks have officially joined the Pan-African Payment and Settlement System (PAPSS), making Nigeria the country with the highest number of participants in the scheme as of May 2025.

The system, which is fast becoming a cornerstone of the African Continental Free Trade Area (AfCFTA), was developed by Afreximbank in collaboration with the African Union and the AfCFTA Secretariat. It was launched in January 2022 to make instant, secure, and cost-efficient cross-border payments a reality across the continent.

“The platform now connects 16 African countries and over 150 commercial banks,” PAPSS disclosed in its updated participant list, highlighting a significant milestone towards a borderless African economy.

Local Currencies, Global Goals

One of PAPSS’s core innovations lies in its ability to process transactions in local African currencies. This eliminates the need for third-party intermediaries like the U.S. dollar, which often drives up costs and slows down transactions. By using PAPSS, businesses and individuals can now make cross-border payments in their home currencies — a move that is expected to fuel intra-African trade and economic integration.

Among the Nigerian banks fully integrated into the platform are heavyweights like First Bank, Zenith Bank, Access Bank, UBA, and Fidelity Bank, alongside newer players such as Lotus Bank, Parallex Bank, Optimus Bank, and Tajbank. The list also includes merchant banks like Coronation Merchant Bank and FBNQuest Merchant Bank.

Ghana ranks second in PAPSS participation, with 19 banks currently signed up. As more banks come on board, stakeholders believe the system will serve as a bedrock for seamless trade under the AfCFTA agreement.

The AfCFTA, signed by 54 African countries, aims to create the world’s largest free trade zone. For that vision to materialise, a harmonised payment infrastructure like PAPSS is essential. It not only supports transaction efficiency but also reinforces monetary sovereignty by promoting the use of local currencies.