Tinubu Calls for Full Adoption of PAPSS to Drive Africa’s Financial Integration

June 28, 2025

President Bola Ahmed Tinubu has called on African countries to fully embrace the Pan-African Payment and Settlement System (PAPSS), highlighting its pivotal role in strengthening the continent’s financial integration, economic stability, and trade independence.

Tinubu made the call during the 32nd Annual Meetings of Afreximbank, held on Friday, June 27, 2025. The high-level summit, attended by heads of state, finance ministers, central bankers, and global stakeholders, focused on unlocking Africa’s financial potential through intra-continental cooperation and innovation.

“I urge all Africans, all African nations, to embrace PAPSS because deeper financial integration strengthens our collective resilience,” President Tinubu said during his keynote address.

Nigeria Backs PAPSS for Economic Transformation

President Tinubu emphasized Nigeria’s strong support for PAPSS, noting that the Central Bank of Nigeria (CBN) has already given formal approval and directed all banks to implement the system as part of efforts to deepen intra-African trade.

He praised Afreximbank’s outgoing President, Prof. Benedict Oramah, for spearheading PAPSS and steering transformative projects that have strengthened Nigeria’s economic future.

“Nigeria has benefited immensely from Afreximbank under Oramah’s leadership, with over $52 billion invested in energy, infrastructure, agriculture, healthcare, manufacturing, and the creative industries,” Tinubu noted.

“Initiatives like the Dangote Refinery and the African Medical Center of Excellence show what’s possible through purposeful partnerships.”

What is PAPSS and Why Does It Matter?

The Pan-African Payment and Settlement System (PAPSS), developed by Afreximbank in collaboration with the African Continental Free Trade Area (AfCFTA) Secretariat and the African Union Commission (AUC), enables real-time cross-border payments in local African currencies—eliminating the need for costly conversions through foreign intermediaries like the US dollar or euro.

In his own address, Prof. Oramah explained that inefficient cross-border payment systems have cost the continent about $5 billion annually in financial leakages.

“PAPSS integrates the 42 fragmented payment systems across Africa into one real-time platform, with support from a $3 billion clearing and settlement fund,” Oramah said.

“Today, PAPSS operates in 16 countries with over 160 commercial banks onboarded. It’s not just a payment system — it’s the foundation of Africa’s financial future.”

PAPSS: From Payments to Capital Markets

In a sign of PAPSS’s growing momentum, Afreximbank has launched PAPSS Credit and Debit Cards in partnership with Mercury and Discover, allowing users to spend local currencies across all enabled countries.

The system also supports capital market innovations, such as:

• Enabling Egyptians to buy stocks on the Nigerian Stock Exchange using Egyptian pounds

• Allowing a Kenyan entity to issue bonds in Nairobi and attract Ghanaian investors paying in cedis

• Facilitating faster repatriation of funds trapped in various African countries

“With PAPSS, we are laying the groundwork for the convergence of Africa’s financial markets, and potentially, the emergence of a single African currency in the future,” Oramah added.

Africa Energy Bank Launch, Stronger Continental Vision

President Tinubu also announced the launch of the Africa Energy Bank, headquartered in Abuja, with $5 billion in initial capital. The bank aims to finance the continent’s energy transition, with a focus on natural gas, renewables, and clean technologies.

“We must build a united and purposeful Africa. Together, we can define our destiny,” Tinubu stated.

He reiterated Nigeria’s readiness to expand partnerships across the continent and urged African governments to increase financial support for Afreximbank to scale up its development impact.

What This Means for Nigeria

In April 2025, the CBN instructed all Nigerian banks to integrate with PAPSS, marking a crucial step toward aligning Nigeria’s payment infrastructure with continental systems. The move is designed to:

• Reduce dependence on the US dollar for regional trade

• Improve cross-border transaction speed and efficiency

• Lower the cost of doing business across Africa

• Strengthen Nigeria’s position within AfCFTA

Nigerian exporters and importers will now settle payments in naira for regional trade, as long as documentation requirements are met. Banks are also adjusting systems to support PAPSS-compliant transactions.

Final Word

PAPSS represents more than a financial tool — it is Africa’s bid for economic sovereignty. With Nigeria championing its adoption and Afreximbank providing the infrastructure, the continent is inching closer to a unified financial space that supports trade, innovation, and growth without borders.

As President Tinubu summed up:

“With PAPSS, we are opening many possibilities. It is now up to every African nation to seize them.”