Nigeria’s PAPSS Transactions Drop 53% as Cross-Border Payments Decline in H1 2025

Nigeria’s participation in the Pan-African Payment and Settlement System (PAPSS) witnessed a sharp slowdown in the first half of 2025, with the value of cross-border transactions falling by 53 per cent to N5.6 billion.

The Central Bank of Nigeria (CBN) disclosed this in its Financial Stability Report for the period ending June 30, 2025. According to the report, Nigerian users processed 3,246 transactions on PAPSS during the period, representing a 29 per cent decline from the 4,600 transactions recorded in the preceding half-year. Transaction value also dropped significantly from N11.97 billion, signalling a noticeable pullback by Nigerian participants from the platform.

PAPSS, developed by the African Export-Import Bank (Afreximbank) in partnership with the African Union, was created to facilitate real-time, low-cost cross-border payments in local currencies across Africa. The system is a key financial infrastructure supporting the African Continental Free Trade Area (AfCFTA), aimed at reducing reliance on hard currencies, cutting transaction costs, and boosting intra-African trade.

Despite the contraction, Nigeria remains the largest participating country on the PAPSS platform. Over 22 Nigerian financial institutions are currently integrated into the system, enabling instant cross-border payments in local currencies. These include major banks such as First Bank of Nigeria, Access Bank, UBA, Zenith Bank, Fidelity Bank, Stanbic IBTC, and Ecobank Nigeria, among others.

In an effort to deepen usage and enhance retail transactions, PAPSS, in collaboration with Afreximbank and Mercury Payment Services, introduced the PAPSSCARD last year. The card allows fast, secure, and affordable retail payments across African borders, while ensuring transactions are processed entirely within the continent.

Speaking at the launch in Abuja, PAPSS Chief Executive Officer, Mike Ogbalu III, described PAPSSCARD as a milestone in Africa’s financial evolution, noting that it represents a bold move toward financial independence and the development of home-grown payment solutions tailored to Africa’s unique economic realities.