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Part of the guideDoing business with Africa: paying and getting paid in Nigeria
The short answer
PAPSS, the Pan-African Payment and Settlement System built by Afreximbank, lets a payer in one African country pay a recipient in another in their own local currencies, without first converting into dollars or euros. Payments are processed in seconds through participating banks, and central banks settle the net positions daily. As of September 2026 it connected more than 30 countries and 24 central banks; it serves payments within Africa, not payments from London or New York.
For decades, a Nigerian company paying a supplier in Ghana or Kenya usually went through dollars: naira to dollars, dollars across a correspondent bank, dollars to cedis or shillings. Two conversions, two spreads and days of waiting. PAPSS was built to cut out that detour. For foreign firms, it matters most once you have an African subsidiary or distributor trading across borders. The parent guide on doing business with Nigeria and Africa covers the routes into and out of Nigeria itself.
How PAPSS works
PAPSS was piloted by Afreximbank and the AfCFTA Secretariat in September 2021 and launched in Ghana in January 2022. It runs on three processes: instant payment, pre-funding and net settlement.
- The payer instructs its bank in Lagos to pay a supplier in Accra, in naira.
- PAPSS validates the payment, running compliance, legal and sanctions checks inside the system, and processes it within about 120 seconds, around the clock.
- The supplier's bank credits cedis to the supplier's account. The supplier never handles naira; the payer never buys dollars.
- Central banks settle the net. Once a day, at 11:00 UTC, PAPSS works out each central bank's net position in its local currency and sends instructions to its real-time gross settlement system. Matching hard-currency adjustments are made on accounts the central banks hold at Afreximbank, which acts as the main settlement agent.
Because settlement happens on a net basis, a day's flows in both directions largely cancel out, and only the difference needs hard currency. PAPSS says this cuts foreign exchange requirements by up to 80%.
Who can use it
- Direct participants
- Banks and payment providers connected to PAPSS and to their central bank's settlement system.
- Indirect participants
- Providers without a central bank settlement account, which fund their clearing accounts through a direct participant.
- Businesses and individuals
- Access PAPSS through a participating bank or payment provider, usually as a cross-border transfer option in online banking.
- Pre-funding
- Participants must pre-fund so money is available before transfers are made.
Nigeria's Foreign Exchange Manual, in force from 1 June 2026, formally recognises PAPSS for settling eligible transactions in local currencies, which gives Nigerian banks a clear basis to offer it to corporate clients.
Scale in 2026
| Measure | Figure (as of September 2026) |
|---|---|
| Countries | More than 30, across all five African regions; about 10 joined in 2026 |
| Central banks connected | 24 national and regional central banks |
| Commercial banks and payment providers | More than 200, plus 16 switches |
| Reach through partners | More than 300 financial institutions |
| Volume growth, comparable periods 2025 to 2026 | About 1,000% across the network; about 1,100% in Nigeria |
| Value growth, same periods | About 120% across the network; about 125% in Nigeria |
Counts vary by source and date: one September 2026 summary of AfCFTA progress put PAPSS live in 28 countries. Check with your bank which corridors it supports today. PAPSS also runs an instant payment service, a card product (PAPSSCARD) and an African Currency Marketplace, with a further phase planned for 2027.
A worked example: a Lagos subsidiary paying an Accra supplier
A UK-owned Lagos company owes a packaging supplier in Accra the equivalent of ₦20,000,000. The spreads below are illustrative, to show the mechanics; ask your bank for real quotes.
| Via US dollars | Via PAPSS | |
|---|---|---|
| Conversions | Naira to dollars, then dollars to cedis | Naira to cedis, one step |
| Spread cost at an illustrative 2% per conversion | About ₦792,000 (two spreads) | About ₦400,000 (one spread) |
| Correspondent bank charges | Often deducted in transit | None in the PAPSS chain |
| Paperwork in Nigeria | Form A and FX purchase on the official market | Local currency instruction through a participating bank; eligibility rules apply |
| Typical arrival | 1 to 3 working days | Seconds to minutes once processed |
PAPSS itself claims cost savings of 92% to 95% per transaction against traditional routes. Actual savings depend on your bank's pricing and the corridor.
Questions to ask your bank
PAPSS reaches businesses through their banks, so the quality of the service depends on how each bank has implemented it. Before you route supplier payments this way, put these questions to the relationship manager at your African subsidiary's bank:
- Are you a direct or indirect PAPSS participant, and is the receiving bank in my supplier's country connected?
- Which corridors do you support today, and which are planned?
- What exchange rate do you apply between the two local currencies, and how is it quoted?
- What fee do you charge per payment, and does the receiving bank charge anything?
- What documents do you need for a trade or services payment, and how do they differ from a dollar transfer?
- What cut-off times apply, and how will my supplier see the payment reference?
Write the answers into your payment procedures, and test with one small supplier payment before you move a whole payment run across.
What PAPSS does not do
- It does not move money from outside Africa. A payment from London, Toronto or New York into Nigeria still goes through SWIFT or a provider. PAPSS starts once the money is inside an African banking system.
- It does not remove KYC or tax. Withholding tax, VAT and documentation rules in each country still apply. See Nigerian withholding tax for non-residents.
- It is not in every country. Coverage is growing quickly but is not continent-wide.
- It does not fix the goods side. Tariff preferences depend on AfCFTA rules of origin, explained in AfCFTA for exporters.
For a group with entities in several African countries, the practical step is to ask each local bank whether it is a PAPSS participant and which corridors it serves, then route intra-African supplier payments that way. Keep payments from your home country on the routes described in the Nigeria business payments guide.
Where Pryme fits
PAPSS access comes through your African banks, as the questions above show. Separately, a Pryme business multicurrency account holds NGN, USD, GBP and EUR, and Payroll runs in Nigeria, Ghana and Kenya for firms with local staff. Pryme Financial Ltd is a technology company, not a bank. In Nigeria, naira deposits are held by Solid Allianze Microfinance Bank Ltd, licensed by the CBN and insured by the NDIC up to the applicable limit; outside Nigeria, activities are carried out through regulated partners.
Questions people ask
What is PAPSS?
The Pan-African Payment and Settlement System is a cross-border payment system built by Afreximbank with the AfCFTA Secretariat. It lets payments between African countries be made and received in local currencies, with central banks settling net positions daily.
Which countries use PAPSS?
As of September 2026, more than 30 African countries, with 24 central banks and more than 200 commercial banks and payment providers connected. Coverage is expanding, so check with your bank for specific corridors.
Can I use PAPSS to send money from the UK to Nigeria?
No. PAPSS covers payments between African countries. Money from the UK, US, Canada or Europe still travels by SWIFT wire or through a provider.
How fast is a PAPSS payment?
Payments are designed to be processed within about 120 seconds, 24 hours a day. Final settlement between central banks happens once a day.
Is PAPSS cheaper than paying in dollars?
It usually avoids one currency conversion and correspondent bank charges. PAPSS claims savings of 92% to 95% per transaction, though the actual saving depends on your bank's pricing.
Sources
- TechEconomy: PAPSS targets accelerated adoption as network expands (Sept 2026) · accessed Oct 2026
- BusinessDay: Explainer: what to know about the Pan-African Payment System · accessed Oct 2026
- Mondaq: The CBN's 2026 Foreign Exchange Manual: key reforms and practical implications · accessed Oct 2026
- Rio Times: AfCFTA status 2026 · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.