By Peace Udugba
How local-currency payments are helping Nigerian businesses trade more efficiently across African markets
For many Nigerian businesses, the next phase of growth could lie beyond the country’s borders. From fashion entrepreneurs sourcing fabrics from Ghana to pharmaceutical distributors purchasing products from Kenya, businesses are increasingly exploring suppliers, customers and investment opportunities across Africa.
The expansion of intra-African trade is being supported by the African Continental Free Trade Area (AfCFTA), which seeks to deepen economic integration, improve market access and increase trade among African countries.
But identifying business opportunities across the continent is only part of the challenge. Companies must also be able to pay suppliers, settle invoices and receive proceeds efficiently.
Traditional cross-border payment channels can involve foreign-currency requirements, intermediary banks, multiple currency conversions, additional charges and longer processing times. For small and medium-sized businesses in particular, such challenges can affect cash flow and complicate regional expansion.
The Pan-African Payment and Settlement System (PAPSS) is helping to address some of these challenges by providing infrastructure for secure and efficient cross-border payments in African currencies.
Under the PAPSS model, an eligible customer in Nigeria can initiate a payment in naira, while the beneficiary receives the equivalent value in the applicable local currency, subject to the relevant requirements and supported corridors.
This approach can reduce the need for businesses to first source US dollars or euros for eligible intra-African transactions. It can also limit unnecessary currency conversions and dependence on correspondent banking arrangements outside the continent.
Faster Payments for Regional Businesses
Speed is another potential advantage of PAPSS.
Through Fidelity Bank Plc, eligible PAPSS transfers can be completed in about 120 seconds, subject to applicable requirements and the receiving market. Faster settlement can help businesses respond to supplier demands, meet delivery schedules and manage their cash flow more effectively.
The service can support eligible commercial payments to suppliers, distributors, service providers and other business partners across participating African markets.
Eligible personal transactions are also supported, including certain education-related payments and family support transactions, depending on the applicable PAPSS rules and corridor.
For businesses engaged in regional commerce, faster cross-border payments can improve operational planning and strengthen relationships with suppliers and partners.
A manufacturer waiting for raw materials, for example, may be able to settle an eligible invoice more efficiently, while a retailer sourcing products from another African market can potentially reduce the complications associated with obtaining foreign currency.
Exporters can also benefit from more efficient payment channels when receiving eligible proceeds from African customers, subject to applicable export, foreign-exchange and regulatory requirements.
Fidelity Bank Expands Access to PAPSS
Fidelity Bank has positioned its PAPSS offering across both digital and physical banking channels.
Customers can initiate eligible transactions through the Fidelity Mobile App, Fidelity Online Banking and Fidelity Bank branches. Customers requiring additional assistance can also engage their Relationship Managers or visit a branch for guidance on documentation and transaction requirements.
The bank’s experience with PAPSS dates back to September 2024, when it onboarded the platform. Fidelity Bank subsequently recorded more than N46 billion in transactions during its early adoption phase, ahead of the official launch of its PAPSS service in August 2025.
PAPSS has also recognised Fidelity Bank among the first Nigerian banks to meet the relevant integration requirements for the platform.
The bank’s early participation has given it experience in handling transactions through the payment infrastructure as adoption of cross-border African payments continues to grow.
Security and Compliance
Security and regulatory compliance remain important components of cross-border payments.
PAPSS transactions are processed through formal banking channels and are subject to authentication, validation, compliance and other regulatory checks. Customers are expected to provide accurate beneficiary details, transaction purposes and any required supporting documents before initiating payments.
Businesses should also confirm that the intended transaction and destination country are supported by PAPSS and comply with applicable regulations, limits, charges and banking requirements.
Supporting the Growth of African Trade
The increasing adoption of digital payment infrastructure reflects the changing nature of African commerce.
As businesses increasingly use digital platforms to find suppliers, reach customers and coordinate transactions across borders, efficient payment systems are becoming an important part of regional trade.
PAPSS is currently available across a growing network of African markets, commercial banks and national payment switches, helping to strengthen financial connectivity across the continent.
For Nigerian businesses looking to expand into other African markets, access to efficient payment channels could make it easier to establish supplier relationships, settle eligible transactions and manage regional operations.
With its digital banking platforms, branch network and experience with PAPSS, Fidelity Bank is seeking to provide Nigerian customers with a convenient channel for eligible cross-border payments.
As intra-African trade continues to develop, businesses that can move money efficiently and securely will be better placed to take advantage of opportunities across the continent.
Fidelity Bank’s PAPSS service enables eligible customers to send payments in naira to supported African countries, with beneficiaries receiving the applicable value in their local currencies, subject to prevailing requirements, limits, charges, regulations, terms and conditions.
