Nigeria and Ghana Launch Instant Wallet-Based Cross-Border Payments
Nigeria and Ghana have commenced a pilot program for the continent’s first wallet-based outbound payment system, allowing for instant, local-currency transfers between the two nations. The initiative, led by Onafriq Nigeria Payments Limited in partnership with the Pan-African Payment and Settlement System (PAPSS), was officially announced on February 3, 2026. Approved by the Central Bank of Nigeria (CBN), the six-month pilot aims to facilitate seamless transactions for individuals and small-to-medium enterprises (SMEs) without requiring the conversion of funds into hard currencies like the U.S. dollar or Euro.
The technical architecture of the system leverages Onafriq’s extensive mobile money infrastructure which connects over one billion mobile wallets and integrates it with the PAPSS network of more than 160 commercial banks. Under the current pilot framework, Nigerian users can send value to Ghana directly in Naira, while recipients in Ghana receive the funds in Cedi. This bi-directional corridor builds upon a previous successful pilot for Ghana-to-Nigeria payments launched in late 2025, effectively creating a closed-loop digital bridge for the two largest economies in the West African Monetary Zone (WAMZ).
Historically, cross-border payments within Africa have been characterized by high costs and significant delays. Traditional international transfers typically incur fees ranging from 7% to over 12%, far exceeding the G20’s global target of 3% for 2027. Before the implementation of local-currency settlement systems, a transfer from Lagos to Accra often required routing through intermediary banks in Europe or North America, a process that could take three to seven business days and expose businesses to multiple exchange rate spreads. The current PAPSS-enabled system aims to reduce these settlement times to under 120 seconds.
The economic implications for Nigeria are centered on the expansion of its non-oil export sector and the formalization of informal trade. In 2024, Nigeria’s exports to Ghana reached approximately $139 million, led by cocoa beans, tobacco, and seasonings. Conversely, Ghana exported $52.8 million to Nigeria, with chocolate and palm oil being the primary products. However, a substantial portion of West African trade remains informal and unrecorded due to the logistical difficulties of formal banking. By providing a “Naira-first” digital rail, the CBN and Onafriq intend to capture a larger share of this informal volume, providing SMEs with a transparent platform to reach a broader addressable market.
This pilot is a critical component of the operationalization of the African Continental Free Trade Area (AfCFTA), which seeks to eliminate tariffs on 90% of goods traded within the continent. Afreximbank, which serves as the settlement entity for PAPSS, has noted that reducing the $5 billion in annual losses attributed to currency liquidity issues is essential for regional industrialization. For Nigerian businesses, the system offers specific transaction limits: individuals can send up to $2,000 equivalent in Naira monthly without additional documentation, while corporates are permitted up to $5,000 monthly under the same simplified rules.
Regulatory oversight for the project remains stringent to mitigate risks associated with currency volatility and cybersecurity. Each transaction is validated through the respective central banks of the originator and the beneficiary before final settlement occurs. While some regional governments have expressed hesitancy regarding the impact of such systems on monetary policy control, the Nigerian and Ghanaian central banks have positioned this pilot as a necessary step toward reducing the domestic demand for U.S. dollars in regional trade, thereby easing pressure on national foreign exchange reserves.
As the six-month pilot progresses through mid-2026, the partners will evaluate user adoption rates and the performance of foreign exchange mechanisms. The long-term objective is to extend this interoperability to all 54 AfCFTA member states, effectively making national borders invisible to digital payments and fostering a unified African financial landscape.
