UBA Enables Naira Transfers Across Africa via PAPSS, Boosting Intra-African Trade Potential

UBA Enables Naira Transfers Across Africa via PAPSS, Boosting Intra-African Trade Potential

United Bank for Africa (UBA) has rolled out a service that allows its customers to send and receive funds in Naira across several African countries using the Pan-African Payment and Settlement System (PAPSS). This move signals a major leap in cross-border financial services and trade connectivity within the continent.

UBA joins other institutions tapping into PAPSS by Afreximbank in partnership with the African Union and AfCFTA—to enable real-time payments across African countries in local currencies.

Breaking Dependence on Third-Party Currencies

The core innovation of PAPSS is that it eliminates the need for intermediary currencies like the US dollar or Euro, which have long inflated transaction costs and delayed trade settlement times in Africa.

By facilitating direct local-currency payments, PAPSS reduces costs and improves efficiency for businesses and consumers alike. Afreximbank describes it as “a transformation of intra-African trade” that removes forex-related friction points.

Through PAPSS, UBA customers can now transfer funds across Ghana, Sierra Leone, Liberia, Gambia, Guinea, Kenya, Rwanda, Zimbabwe, Zambia, and Djibouti. The bank says additional countries will be added as the system scales continent-wide.

“Enjoy faster, safer, and more affordable money transfers across Africa with PAPSS,” the bank noted. “It’s available in all UBA branches nationwide.”

Policy Support from CBN Accelerates Adoption

UBA’s adoption comes on the heels of a regulatory shift by the Central Bank of Nigeria (CBN), which now allows authorised dealer banks to independently source FX from the Nigerian Foreign Exchange Market for PAPSS settlements—without CBN pre-approval.

According to CBN spokesperson Hakama Sidi Ali, this policy “aims to enhance efficiency and encourage more participation in intra-African trade payments.” Revised documentation guidelines were also introduced to streamline procedures and boost transparency.

UBA’s move reflects its broader ambition to drive pan-African financial inclusion and innovation. Coming during the bank’s 75th anniversary, the launch is a timely reinforcement of its commitment to pioneering customer-centric banking and supporting the goals of the African Continental Free Trade Area (AfCFTA).

With PAPSS and policy tailwinds from the CBN, the groundwork for a truly interconnected African financial system is beginning to take shape.

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