The Federal Government of Nigeria officially launched a landmark report titled “Cross-Border Digital Payments and Identity in Nigeria under the AfCFTA.”
This initiative is a strategic move to help Nigerian Micro, Small, and Medium Enterprises (MSMEs) transition from informal, inefficient trade methods to a digital-first approach, allowing them to tap into the $3.5 trillion African Continental Free Trade Area (AfCFTA) market.
The report was unveiled in Abuja by the Deputy Chief of Staff to the President, Senator Ibrahim Hassan Hadejia, on behalf of the Vice President’s office.
A major barrier to cross-border trade has been “trust.” The government plans to leverage the National Identification Number (NIN) and Bank Verification Number (BVN) systems to provide MSMEs with a “trusted digital identity” recognized across borders.
The report identifies the Pan-African Payment and Settlement System (PAPSS) as the primary platform for clearing and settling intra-African trade transactions in local currencies, reducing the heavy reliance on the US Dollar.
High-growth Nigerian fintechs like PalmPay and Moniepoint are expected to play a “pivotal role” in driving the adoption of these digital payment systems due to their massive existing user bases.
This report follows the earlier launch of Nigeria’s Digital Trade Strategy, which focuses on moving beyond physical goods to include services and e-commerce exports across the continent.
Historically, intra-African trade has been dominated by large corporations. This new framework aims to democratize access by Moving away from traditional correspondent banking (which often routes payments through Europe or the US) lowers transaction fees.
Digital payments through PAPSS and fintech partners allow for near-instant settlement compared to the days or weeks it previously took. It provides a roadmap for a small business in Aba or Kano to sell directly to a customer in Nairobi or Accra as easily as they would locally.
As Senator Hadejia noted during the launch, the goal is to move AfCFTA “beyond a continental agreement to a $3.5 trillion trade juggernaut” that domesticates prosperity within Africa.
For business owners, the message is clear. The digital infrastructure is being built; the next step is ensuring your business is “AfCFTA-ready” by formalizing through digital identity and payment platforms.
