United Bank for Africa (UBA) has announced that its customers can now send and receive money in Naira seamlessly across the African continent through the Pan-African Payment and Settlement System (PAPSS).
The bank disclosed this on its official Xbox handle with a message titled, “The wait is over, o ya now,” marking a significant milestone in cross-border financial transactions for Nigerians and other Africans.
PAPSS, launched in January 2022 by the African Export-Import Bank (Afreximbank) in collaboration with the African Union and the African Continental Free Trade Area (AfCFTA) Secretariat, is a centralised payment and settlement infrastructure designed to facilitate instant, secure and efficient cross-border transactions throughout Africa.
The core advantage of PAPSS lies in its ability to enable transactions directly in local currencies. This eliminates the longstanding reliance on third-party currencies such as the US dollar or the Euro—a dependency that has historically hampered trade and increased transaction costs across African countries.
By reducing these barriers, PAPSS not only lowers transaction costs but also accelerates trade flows and supports the rapid expansion of commercial activities envisioned under the AfCFTA framework.
According to Afreximbank, PAPSS “is set to transform intra-African trade by removing complex foreign exchange dependencies and long processing timelines.”
UBA emphasised the extensive reach of the new service, stating that customers can now send and receive funds seamlessly in numerous African countries including Ghana, Sierra Leone, Liberia, Gambia, Guinea, Kenya, Rwanda, Zimbabwe, Zambia, and Djibouti, with more countries expected to join in the near future.
In a statement, the bank said: “Enjoy faster, safer, and more affordable money transfers across Africa with PAPSS. Available in all UBA branches nationwide. It’s faster, safer, and cheaper.” The bank highlighted that this initiative represents a step forward in its commitment to delivering innovative banking solutions that cater to the evolving needs of its customers both locally and internationally.
The Central Bank of Nigeria (CBN) had last month announced a policy change allowing authorised dealer banks to independently source foreign exchange for PAPSS settlements through the Nigerian Foreign Exchange Market (NFEM) without requiring approval or intervention from the apex bank.
This represents a clear departure from previous practices where banks depended on the CBN to access foreign exchange for such settlements, often resulting in delays and bureaucratic obstacles.
The announcement was contained in a statement signed by Hakama Sidi Ali, acting director of Corporate Communications at the CBN. According to the statement, “The Central Bank of Nigeria has approved that all authorised dealer banks can now independently source foreign exchange from the Nigerian Foreign Exchange Market for the settlement of PAPSS transactions. This new directive aims to simplify the process, enhance efficiency, and encourage more participation in intra-African trade payments.”
Additionally, the CBN unveiled revised documentation requirements for PAPSS transactions conducted within Nigeria. The apex bank explained that these new documentation guidelines would streamline processing, reduce administrative bottlenecks, and improve overall transparency in cross-border payments.
The CBN reiterated that the policy forms part of its broader strategic efforts to promote seamless intra-African trade, enhance financial inclusion, and improve operational efficiency for Nigerians engaging in transactions across the continent.
“This measure reflects the Bank’s commitment to advancing the objectives of the African Continental Free Trade Agreement and to ensuring that Nigerians can fully benefit from opportunities offered by closer integration with African markets,” the CBN concluded.
