The Nigerian government is spearheading a significant initiative to reshape Africa’s cross-border payment landscape, proposing the development of an Africa-wide payment card designed to facilitate direct transactions between African currencies. This ambitious proposal, championed by Taiwo Oyedele, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, aims to eliminate reliance on intermediary currencies like the United States dollar, thereby reducing transaction costs and enhancing efficiency across the continent.
The proposal was articulated during a meeting with a delegation from Mastercard in Abuja. Oyedele highlighted the current inefficiencies inherent in existing payment systems, where cross-border transactions between African nations often involve multiple currency conversions. For instance, a transaction initiated with a Nigerian card in Ghana might be converted from Ghanaian cedis to US dollars, and then subsequently to Nigerian naira, incurring additional costs at each exchange point.
“We hope that, for example, we have a payment card that you can use to pay from naira to Kenyan shillings, to South African rand, without a third currency. And we know you can make it possible,” Oyedele stated, directly appealing to Mastercard for support in creating a payment system that enables direct settlements between African currencies. The elimination of intermediary currencies, he argued, would not only improve payment efficiency and reduce costs but also significantly strengthen economic integration, particularly within the framework of the African Continental Free Trade Area (AfCFTA).
Beyond the pan-African payment card initiative, the Minister also addressed the critical need to expand credit card accessibility in Nigeria, noting the current low penetration rates even among high-income earners and public officials. He shared his personal experience, remarking, “It is difficult, even for someone at my level, to get a credit card.” This underscores a significant opportunity for financial institutions to enhance consumer credit access.
Acknowledging Nigeria’s burgeoning fintech sector, which hosts five of Africa’s nine fintech unicorns, Oyedele expressed optimism about its potential for further growth and innovation. He assured investors and fintech operators of the government’s commitment to policy consistency and regulatory support, signalling a conducive environment for investment and expansion.
This strategic proposal emerges against a backdrop of projected rapid growth in Africa’s cross-border payments market over the next decade, driven by rising fintech adoption, mobile money usage, and increasing intra-African trade under the AfCFTA. However, persistent challenges such as fragmented financial systems, high transaction costs, and settlement inefficiencies continue to impede progress.
In separate but related developments within Nigeria’s financial sector, Providus Bank has officially entered the integration phase following the completion of legal and regulatory requirements for its merger with Unity Bank. The enlarged entity, now operating as ProvidusUnity Bank Limited, aims to leverage its expanded national reach and enhanced capabilities to deliver superior banking experiences. The bank has assured customers that banking operations will remain seamless throughout the integration period, with all accounts and existing service channels continuing to function without interruption. This merger is positioned to strengthen the institution’s capacity to support economic growth through improved access to services, advanced technology, and a wider product offering.
Meanwhile, the Economic and Financial Crimes Commission (EFCC) and the Corporate Affairs Commission (CAC) have jointly raised concerns regarding the proliferation of unregistered Point of Sale (POS) operators. Senator Ibrahim Adah, Chairman of the CAC Board, revealed that approximately only 20 per cent of POS operators are registered, a situation that violates the Companies and Allied Matters Act (CAMA) 2020 and the Central Bank of Nigeria’s Agent Banking Regulations 2026. Both agencies are seeking enhanced collaboration to enforce compliance and establish a reliable database of POS operators, citing risks to the financial system and national security, including the potential channelling of criminal proceeds. EFCC Chairman Ola Olukoyede affirmed the commission’s readiness to strengthen cooperation, noting that the EFCC is currently investigating approximately 200 companies referred by the CAC, many of which are implicated in procurement and contract fraud.
Furthermore, the Securities and Exchange Commission (SEC) has issued a ban on the marketing and promotion of a purported initial public offering (IPO) by Dangote Petroleum Refinery & Petrochemicals FZE. The SEC clarified that no application for such an offer has been filed or approved, warning that ongoing pre-marketing activities, including soliciting advance subscriptions, constitute market manipulation and a serious violation of the Investments and Securities Act. The Commission has directed all Registered Capital Market Operators to immediately cease all promotional activities related to this unregistered offering.
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