United Bank for Africa (UBA) has disclosed that its customers can now send and receive money in naira across Africa via the Pan-African Payment Settlement System (PAPSS).

The bank announced this on X, asking its customers to leverage PAPSS for cross-border transactions for Nigerians and other Africans.

Afreximbank launched PAPSS to ease payment

PAPSS was launched in January 2022 by the African Export-Import Bank (Afreximbank) in partnership with the AU and the African Continental Free Trade Area (AfCTA) Secretariat.

It is a centralised payment and settlement system to facilitate instant, secure and cross-border transactions throughout the continent.

It enables transactions directly in local currencies, eliminating reliance on third-party currencies such as the dollar or the euro.

According to reports, PAPSS lowers transaction costs and accelerates trade flows, supporting the rapid growth of commercial activities espoused under the Afcfta framework.

UBA highlights benefits of PAPSS

Meanwhile, UBA stressed the extensive reach of PAPSS, saying that customers can now send and receive funds in several African countries, including Ghana, Sierra Leone, Liberia, Gambia, Guinea, Kenya, Rwanda, Zimbabwe, Zambia, and Djibouti, BusinessDay reported.

UBA highlighted that the initiative is a step forward in its plan to deliver innovative banking solutions that cater to the evolving needs of its customers locally and internationally.

CBN sends directives to banks on PAPSS

In April 2025, Legit.ng earlier reported that the Central Bank of Nigeria has said that authorised dealer banks can now source forex independently for the Pan-African Payment and Settlement System (PAPSS) via the Nigerian Foreign Exchange Market (NAFEM), without going through it.

CBN disclosed this in a statement signed by Hakama Sidi Ali, its Acting Director of Corporate Communications, on Monday, April 28, 2025, after unveiling the revised documentation requirements for PAPSS transactions in the country.

PAPSS aims to reduce reliance on dollar transactions

The bank said the move is part of its ongoing efforts to promote a hassle-free intra-African trade, boost financial inclusion, and improve operational efficiency for Nigerians operating cross-border payments in Africa.

Under the new rule, customers operating low-value transactions can now use basic Know Your Customer (KYC) and Anti-Money Laundering documents already provided to their dealer banks.

Individuals transacting up to $2,000 in naira equivalent and corporate bodies up to $5,000 equivalent are eligible for the document regime.

Tanzania bans the use of foreign currencies

Legit.ng previously reported that Tanzania has officially banned the use of foreign currencies, including the US dollar, for all domestic transactions.

This means that the Tanzanian shilling (TZS) must be used exclusively to pay for products and services within the country.

This comes after the Tanzanian shilling lost more than 10% of its value against the US dollar, making it Africa's worst-performing currency in 2024, according to Bloomberg data.