CBN, PAPSS Move to Boost Cross-Border Payments for Nigerian Agribusiness

News in Brief:

-Nigeria is moving to deepen adoption of PAPSS to enable faster, cheaper cross-border payments in local currencies, boosting intra-African trade under the African Continental Free Trade Area.

-For farmers and agribusinesses, this means quicker transactions, lower costs, and easier access to regional markets across Africa.

Efforts to simplify cross-border trade for Nigerian farmers and agribusiness owners received a boost as Mike Ogbalu III, CEO of the Pan-African Payment and Settlement System (PAPSS), met with Muhammad Sani Abdullahi of the Central Bank of Nigeria (CBN) to deepen adoption of the platform across the country.

The meeting focused on strengthening collaboration with regulators, expanding participation among financial institutions, and positioning Nigeria as a key driver of seamless intra-African trade under the African Continental Free Trade Area (AfCFTA).

What This Means for Farmers and Agribusiness

For farmers, exporters, and agribusiness operators, PAPSS offers a practical solution to one of the biggest challenges in regional trade—payments. Traditionally, cross-border transactions within Africa rely on foreign currencies such as the US dollar, increasing costs and delays. PAPSS eliminates this barrier by enabling payments in local currencies, allowing Nigerian traders to pay and receive funds directly in naira when dealing with partners across participating African countries.

Launched in 2022 by the African Export-Import Bank (Afreximbank) in partnership with the African Union, PAPSS processes transactions in as little as 120 seconds. This speed is particularly beneficial for agribusinesses dealing in perishable goods, where delays in payment can disrupt supply chains and affect delivery timelines.

The system also reduces transaction costs by bypassing intermediary banks, making it more affordable for smallholder farmers, cooperatives, and exporters to access regional markets. Payments can be initiated through participating commercial banks, mobile applications, and digital platforms, improving accessibility across the value chain.

Nigeria is already part of a growing PAPSS network that spans multiple African countries, with over 160 commercial banks and more than 16 central banks connected. New initiatives such as the PAPSSCARD and the Pan-African Currency Marketplace are expected to further enhance trade by lowering payment costs and improving currency exchange across the continent.

As adoption expands, stakeholders say PAPSS could play a critical role in unlocking new markets for Nigerian agricultural products, strengthening regional trade flows, and improving income opportunities for farmers and agribusinesses.