The Federal Government has proposed the development of a cross-border African payment card that would enable direct transactions between African currencies without requiring conversion through the U.S. dollar or other intermediary currencies, a move aimed at reducing costs and boosting intra-African trade.
The proposal was put forward by Taiwo Oyedele, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, during a meeting with a delegation from Mastercard in Abuja on Tuesday.
Oyedele said Africa has a unique opportunity to modernize its payment infrastructure and bypass traditional settlement systems that often rely on foreign currencies. According to him, a continent-wide payment card capable of facilitating direct currency-to-currency transactions would significantly improve efficiency and lower transaction costs for businesses and consumers.
Currently, many cross-border card payments within Africa pass through intermediary currencies such as the U.S. dollar. For instance, a transaction involving a Nigerian cardholder making a purchase in Ghana may require conversion from Ghanaian cedis to dollars before being converted again into naira, leading to additional costs and exchange rate exposure.
Reducing Friction in African Trade
Speaking during the meeting, Oyedele expressed optimism that global payment providers such as Mastercard could help make direct African currency settlements a reality.
“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,” he said.
He noted that eliminating intermediary currencies would strengthen economic integration, facilitate trade under the African Continental Free Trade Area, and support efforts to build a more connected African economy.
Push for Greater Credit Card Access
Beyond cross-border payments, the minister urged Mastercard to expand access to consumer credit in Nigeria, describing the country’s credit card penetration as relatively low.
According to Oyedele, obtaining credit cards remains challenging even for senior government officials and high-income earners, highlighting a broader gap in Nigeria’s consumer credit ecosystem.
He called on Mastercard to play a leading role in improving access to credit products and financial services across the country.
Nigeria’s Growing Fintech Influence
Oyedele also highlighted Nigeria’s position as one of Africa’s leading fintech hubs, noting that five of the continent’s nine fintech unicorns are Nigerian companies.
While acknowledging the significant progress achieved by local fintech firms, he stressed that there remains substantial room for growth and innovation.
“Our fintech sector is quite developed, but we know that we can do much better. We can be much bigger,” he said.
The minister reaffirmed the government’s commitment to maintaining policy stability and creating an investor-friendly environment to attract more investment into the financial technology sector.
Cross-Border Payments Market Set for Rapid Growth
The proposal comes amid growing expectations for Africa’s cross-border payments industry.
According to a report by venture capital firm Oui Capital, Africa’s cross-border payments market is projected to expand from approximately $329 billion in 2025 to nearly $1 trillion by 2035, representing a compound annual growth rate (CAGR) of 12%.
The anticipated growth is expected to be driven by increasing fintech adoption, expanding mobile money usage, rising intra-African trade, and the continued implementation of AfCFTA.
However, industry stakeholders have consistently identified fragmented financial systems, multiple currency conversions, high transaction costs, and settlement delays as major barriers to seamless cross-border commerce across the continent.
The Federal Government of nigeria’s proposal is seen as part of broader efforts to deepen regional trade ties and build the financial infrastructure needed to support Africa’s long-term economic transformation.
