The Central Bank of Nigeria (CBN) on Thursday, January 13, endorsed the adoption of the Pan-African Payment and Settlement System (PAPSS), said to be Africa’s new payment system. At its launch in Accra, Ghana, the CBN led by the Governor Mr. Godwin Emefiele CBN promised to recommend the payment system to financial institutions across the country.
In the past, trading across countries in Africa required a correspondent bank and third-party currency like the USA dollar. The development of PAPSS by the African Export-import Bank (Afreximbank) will end the financial borders existing in Africa, thereby easing cross-border transactions and fostering the move to integrate the economy and business across Africa by building a single market all over the continent. Expressing Nigeria’s support, the Governor stated, “the launch of PAPSS gives the fresh opportunity and aspiration for the African continent. It will simplify cross-border transactions, reduce third currencies for intra-African transactions and remove the need for correspondent Banks and ultimately amplify Intra trade significantly”.
The presence of PAPSS and its inclusion will reduce the influence of foreign currencies or nationalities in the economic system of Africa. It promotes Africa’s growth and creates a positive impression of the continent’s interest in the advancement of Financial Technology (FinTech) to the developed world.
Nigeria in focus
Population: 206.1 million in 2020 as compared to 201 million in 2019
GDP: $432.3 billion compared to $448.1 billion in 2019
GDP per capita: $2,097 in 2020 compared to $2,229 in 2019