How Nigerian churches are boosting cross-border payments across Africa, PAPSS reveals
By Aboki Forex —
Nigerian churches are now a major driver of cross-border payment flows across Africa, according to the Chief Executive Officer of the Pan-African Payment and Settlement System (PAPSS), Mike Ogbalu. He spoke on Friday at a media chat, revealing that PAPSS data shows a growing volume of payments flowing into Nigeria from worshippers across the continent who remit tithes, offerings and other church-related contributions to Nigerian religious organisations.
The disclosure points to an emerging trend in Africa's payments landscape, where digital and local-currency settlement systems are reducing dependence on the US dollar and lowering transaction costs.
Church tithes show up in PAPSS data
Ogbalu said religious payments have become a notable part of transaction activity on the PAPSS platform, reflecting the influence of Nigerian churches beyond the country's borders.
“One other thing, which is more like a fun fact, is that we are also seeing the power of Nigerian churches. There are a lot of faithful across Africa who pay tithes and other contributions (to churches in Nigeria),” he said.
He noted that PAPSS has recorded such transactions from multiple African countries, including Kenya. “We are beginning to see that many people follow Nigerian churches across the length and breadth of Africa. A lot of people are now giving their tithes and offerings,” Ogbalu added.
Nigeria-Rwanda corridor overtakes Ghana
Beyond church-related remittances, Ogbalu said PAPSS continues to record strong transaction volumes between Nigeria and several African countries, including Ghana, Kenya and Rwanda. Payment flows between Nigeria and Rwanda are now approaching, and in some instances exceeding, those between Nigeria and Ghana.
“Most interestingly, Nigeria and Rwanda are almost exceeding Nigeria and Ghana in transaction volumes. That was a bit surprising because historically there has always been significant business activity between Nigeria and Ghana,” he said.
The PAPSS CEO also pointed to growing transaction corridors linking Nigeria with Cameroon, Niger Republic and Benin Republic, driven largely by trade in Nigerian goods across West Africa. “There is a lot of flow of transactions between Nigeria and its West African neighbours,” he said.
AfCRA, stablecoins and the future of African payments
Commenting on the upcoming launch of the African Credit Rating Agency (AfCRA) in Mauritius on October 7, Ogbalu said African-led institutions could help address longstanding concerns about how the continent is assessed by international rating agencies. More context-driven credit assessments could encourage greater retention of African capital within the continent.
“When African rating agencies are reviewing African institutions, we begin to see changes where more of Africa's capital remains within the continent and supports development needs,” he said.
Ogbalu also disclosed that PAPSS is exploring ways to support stablecoins and other digital currencies within its payments ecosystem. Describing digital assets as technologies that are “here to stay,” he praised the regulatory efforts of the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) and hinted that PAPSS could make announcements on the initiative soon.
PAPSS currently operates in 30 African countries and aims to expand to about 38 countries by the end of 2026. South Africa remains the only major African economy yet to join the platform, although discussions with authorities there are progressing positively.
What it means for the naira and Nigerian businesses
The growing volume of church-related remittances and trade payments flowing through PAPSS underscores the increasing integration of African economies. A recent report by venture capital firm Oui Capital projected that Africa's cross-border payments market could expand from $329 billion in 2025 to $1 trillion by 2035, driven by fintech innovation, increased intra-African trade and wider adoption of mobile money solutions.
The report also estimated that Africa loses about $5 billion annually due to foreign exchange inefficiencies, multiple currency conversions and inadequate payment interoperability. It highlighted the need for platforms to streamline transactions across the continent.
Recently, Nigeria's Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, called for the development of a cross-border payment card that would allow transactions between African currencies without requiring conversion through the US dollar or other third-party currencies. Oyedele highlighted the need for more efficient payment infrastructure to support intra-African trade under the African Continental Free Trade Area (AfCFTA). For Nigerian businesses and households sending money across borders, a more efficient system could mean lower costs and less reliance on the dollar.