Moving money across African borders often involves an unnecessary detour through foreign currencies, increasing costs and exposing businesses and consumers to exchange rate risks. Nigeria is now seeking to change that reality with a proposal for a continent-wide payment card that would allow transactions to be completed directly between African currencies, removing the need for intermediary currencies such as the U.S. dollar.
The proposal was presented by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, during a high-level meeting with a Mastercard delegation in Abuja on Tuesday. The initiative forms part of strategic effort to modernise Africa's payment infrastructure while supporting deeper economic integration across the continent.
Under the existing system, a simple cross-border purchase can involve multiple currency conversions. For example, when a Nigerian makes a payment in Ghana, the naira is often converted into U.S. dollars before being exchanged into Ghanaian cedis. Besides increasing transaction costs, the process also exposes users to additional exchange rate fluctuations.
Nigeria believes there is a better alternative.
According to Oyedele, Africa has reached a point where it can develop a payment system that allows transactions to move directly from one African currency to another. He told the Mastercard delegation that the vision is to create a payment card capable of processing payments from the naira to the Kenyan shilling, the South African rand and other African currencies without passing through a third currency.
"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.
If implemented, the proposed payment card is expected to simplify cross-border transactions, reduce processing costs and encourage stronger commercial ties among African nations. The initiative also aligns with Nigeria's commitment to advancing the objectives of the African Continental Free Trade Area (AfCFTA), which seeks to create a more integrated African marketplace.
Oyedele expressed confidence that Mastercard's expertise and global experience could help translate the proposal into a practical solution capable of supporting trade and financial connectivity across the continent.
The discussions also extended beyond cross-border payments to Nigeria's domestic financial ecosystem. Oyedele noted that access to consumer credit remains limited, observing that obtaining credit cards is still difficult even for senior government officials and high-income earners. He called for greater collaboration to expand credit access and strengthen Nigeria's consumer finance landscape.
Reflecting on the country's digital finance achievements, the minister pointed to Nigeria's growing fintech industry, noting that the country is home to five of Africa's nine fintech unicorns. While describing the sector as one of the continent's strongest, he said there remains significant room for expansion.
"Our fintech sector is quite developed, but we know that we can do much better. We can be much bigger," he said.
He added that the government remains committed to maintaining policy stability and creating an investor-friendly environment that encourages innovation and long-term investment.
Should the proposal gain traction, it could mark an important step towards a more connected African financial system, making it easier for individuals and businesses to transact across borders while reinforcing Nigeria's role in shaping the future of the continent's digital economy.
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