President Bola Tinubu, on Friday, urged African international locations to embrace the Pan-African Fee and Settlement System (PAPSS) for deeper monetary integration throughout the continent.
He made the decision on the Afreximbank thirty second Annual Conferences, attended by Nairametrics.
He urged all African international locations to embrace the expertise.
“I urge all Africans, all African nations, to embrace PAPSS as a result of deeper monetary integration strengthens our collective resilience,” he stated.
President’s Remarks
Highlighting Oramah’s affect on Nigeria, Tinubu said that the nation has benefited from over $52 billion in assist directed into vitality, agriculture, infrastructure, manufacturing, healthcare, and inventive business sectors, citing flagship tasks such because the Dangote Refinery and the African Medical Middle of Excellence.
- He maintained that this improvement embodies confidence in Nigeria’s future and Africa’s potential, including that the partnership that established Afreximbank excels past capital.
- The president added that Nigeria’s formal approval of the Pan-African Fee and Settlement System (PAPSS) is a big step towards monetary independence.
He thanked Oramah for his management within the initiative, saying PAPSS allows cross-border commerce in native currencies, reduces reliance on overseas trade, and promotes financial stability.
He additionally referred to as on Africa to strengthen monetary assist to Afreximbank to scale its transformational affect.
- He stated a united and purposeful Africa can outline its future.
“Collectively, we’re launching the Africa Power Bank in Abuja, with $5 billion in preliminary capital to finance Africa’s vitality transition, leveraging fuel, renewables, and clear applied sciences,” he added.
- He assured that Nigeria’s collaboration with Africa is increasing in each scope and ambition.
Extra Perception on PAPSS
In his remarks earlier, Oramah stated one of many biggest obstacles to intra-African commerce has been the shortage of environment friendly cross-border fee programs, which have brought about leakages of round $5 billion yearly.
- He burdened that the Pan-African Fee and Settlement System (PAPSS), championed by Afreximbank in partnership with the AfCFTA Secretariat and African Union Fee (AUC), is integrating the 42 fee programs that exist in Africa, enabling real-time funds in native currencies.
“PAPSS eliminates the necessity for foreign money conversion via exterior intermediaries, saving billions in transaction prices yearly. The system is supported by a $3 billion clearing and settlement fund from Afreximbank. PAPSS has onboarded about 160 business banks and operates in 16 international locations, with many extra underway,” he added.
- In keeping with him, PAPSS is now starting to steadily ship on its basic objective of serving because the continental fee rail that may foster innovation and general continental fee effectivity.
“On this regard, an African Forex Market was launched and is now absolutely operational. This market permits for the buying and selling of African currencies, making a window for the repatriation of trapped funds in several African international locations,” he stated, highlighting that the bank lately launched PAPSS Credit score and Debit Playing cards in partnership with Mercury and Uncover.
“Holders of the playing cards can spend their nationwide currencies within the 16 international locations the place PAPSS is enabled at present. With PAPSS, distinguished women and gents, we now have opened many prospects,” he stated.
For example, he added that with PAPSS, stakeholders can carry extra liquidity to capital markets, as it should allow an Egyptian to purchase shares on the Nigerian Inventory Change utilizing Egyptian kilos; a Kenyan entity can subject bonds listed on the Nairobi Inventory Change, and a Ghanaian can put money into it utilizing Ghanaian cedis.
- He stated that steadily, Africa will obtain convergence in its capital and monetary markets, paving the way in which for a single foreign money in the future sooner or later.
- He appreciated the 16 international locations which have linked to PAPSS and are driving its phenomenal progress, and urged these within the course of to expedite their participation.
What to Know
In April 2025, the Central Bank of Nigeria (CBN) directed all banks working within the nation to undertake the Pan-African Fee and Settlement System (PAPSS) and begin originating transactions underneath the brand new framework, as a part of efforts to deepen intra-African commerce and enhance cross-border fee effectivity.
- The CBN’s transfer signaled a push to completely combine Nigerian banks and companies into Africa’s evolving fee ecosystem.
- By encouraging using PAPSS, the regulator goals to strengthen intra-African commerce flows, scale back the fee and time related to cross-border transactions, and decrease Nigeria’s dependence on foreign currency just like the greenback for regional commerce.
- For banks, this implies adjusting their fee infrastructure to originate and course of PAPSS transactions in compliance with the brand new documentation guidelines.
Exporters and importers may also profit from quicker transaction settlements in native currencies, however should guarantee they adjust to simplified and full documentation necessities relying on transaction dimension.
General, the adoption of PAPSS is predicted to make cross-border funds extra accessible, environment friendly, and cost-effective for Nigerian companies and people participating throughout the African continent.
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