Connecting Payments and Accelerating Intra-Africa trade Through The Pan-African Payment and Settlement System

As the world continues to change, world leaders are fighting to move away from the global currencies by embracing regional trade currencies, markets and payment infrastructure. The Pan-African Payment and Settlement System (PAPSS) is a cross-border, financial market infrastructure enabling payment transactions across Africa. PAPSS addresses the historic challenges of making payments across African and adds value through a common African market infrastructure for all stakeholders, from governments, banks and payment providers to corporates, small enterprises, and individuals.

On the 25th of July 2023, the Central Bank of Nigeria (CBN) issued a Circular titled “Re: Introduction of the Pan African Payments and Settlement System (PAPSS)” (Circular) to provide clarification on how the features of the PAPSS will be implemented in Nigeria.

This article examines the regulatory update by the CBN in the Circular and its impact on the settlement of PAPSS trade transactions.