Onafriq Nigeria Payments Ltd and the Pan-African Payment and Settlement System (PAPSS) have launched a landmark partnership for a new payment corridor. This pilot program enables the continent's first wallet-based outbound payments from Nigeria to Ghana, conducted instantly and entirely in Naira. The initiative, approved by the Central Bank of Nigeria, marks a significant step in simplifying cross-border trade and reducing reliance on hard currencies.
A New Corridor for Intra-African Commerce
The new service, which received regulatory approval from the Central Bank of Nigeria, will become operational on December 1st for a six-month pilot. It allows users to send money directly from their wallets in Nigeria to recipients in Ghana without the complexities of foreign exchange conversion. This streamlined process is designed to significantly reduce transaction times and costs for participants in this key West African trade route.
This initiative is poised to particularly benefit small and medium-sized enterprises (SMEs), often cited as the backbone of intra-African trade. By providing a faster and more affordable payment method, the service empowers these businesses to connect with customers and suppliers across the border more efficiently. This reduction in financial friction is expected to help SMEs expand their markets and stimulate increased economic activity between the two nations.
Bridging Financial Ecosystems for Growth
The collaboration strategically merges two vital financial worlds: mobile money and traditional banking. Onafriq contributes its extensive mobile money infrastructure, which includes over one billion mobile wallets across the continent. In parallel, PAPSS provides its robust network of over 160 commercial banks, connecting more than 400 million bank accounts to create a unified payment system.
This partnership directly supports the operational goals of the African Continental Free Trade Area (AfCFTA), which aims to create a single market. By facilitating seamless intra-African payments, Onafriq and PAPSS are building the financial infrastructure necessary to realize the AfCFTA's vision of tariff-free trade. This move helps dismantle financial silos that have historically inhibited commerce between Africa's diverse bank-led and mobile-led economies.
Leadership Perspectives on a Connected Africa
Mxolisi Msutwana, Managing Director for Anglophone West Africa at Onafriq, highlighted the power of large-scale collaboration in this milestone. He emphasized that connecting banking and mobile money ecosystems is key to opening bi-directional trade corridors and reducing business costs. This initiative provides African enterprises with the tools to trade confidently using their local currencies, advancing a continental vision through practical steps.
Echoing this sentiment, Ositadimma Ugwu, Chief Information Officer at PAPSS, noted that the initiative challenges the perception of borders as roadblocks. He stated the goal is to make sending value across countries as simple as sending a text message, effectively making borders invisible to payments. This pilot program transforms that vision into a tangible reality, moving the continent closer to a truly integrated financial ecosystem.
Building on Previous Success
This new Nigeria-to-Ghana outbound service builds upon a previously successful initiative between the two organizations. Earlier this year, Onafriq and PAPSS launched an instant payments corridor for transactions from Ghana into Nigeria. The success of that initial phase provided a proven framework and demonstrated strong demand for local, instant, and inclusive cross-border payment solutions.
Ultimately, the pilot program between Onafriq and PAPSS represents more than just a new payment route; it is a foundational step toward a unified African economy. By simplifying transactions and promoting the use of local currencies, the partnership is set to unlock new opportunities for businesses and foster greater financial inclusion. This collaboration serves as a powerful example of how targeted innovation can drive the continent's broader goals of economic integration.