Nigerian churches are emerging as a notable driver of cross-border payments across Africa, with worshippers in different countries sending tithes, offerings and other church-related contributions to religious organisations in Nigeria.
The Chief Executive Officer of the Pan-African Payment and Settlement System, Mike Ogbalu, disclosed this during a media chat on Friday, saying data from the payment platform showed increasing transaction flows linked to Nigerian churches.
Ogbalu said the development reflects the growing continental reach of Nigerian religious organisations and the increasing use of digital payment infrastructure for cross-border transactions.
‘We are seeing the power of Nigerian churches’
According to the PAPSS boss, worshippers across Africa are increasingly maintaining financial connections with Nigerian churches, contributing to the flow of funds between countries.
“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,” Ogbalu said.
He explained that PAPSS had recorded such transactions from several 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,” he added.
Nigeria-Rwanda payments rival Ghana corridor
Beyond religious contributions, Ogbalu said PAPSS was recording strong payment activity between Nigeria and several African countries, particularly Ghana, Kenya and Rwanda.
He revealed that transactions between Nigeria and Rwanda had grown significantly and were now approaching, and in some cases exceeding, transaction volumes 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.
According to Ogbalu, growing trade in Nigerian goods is also driving payment flows between Nigeria and its West African neighbours, including Cameroon, Niger Republic and Benin Republic.
“There is a lot of flow of transactions between Nigeria and its West African neighbours,” he said.
PAPSS seeks wider African adoption
PAPSS is designed to facilitate cross-border payments across Africa using local currencies, potentially reducing the need for businesses and individuals to route transactions through the US dollar or other third-party currencies.
Ogbalu said the system currently operates in 30 African countries and is targeting expansion to about 38 countries by the end of 2026.
He added that South Africa remains the only major African economy yet to join the platform, although discussions with authorities there are progressing positively.
Payment system explores stablecoins
The PAPSS chief executive also disclosed that the platform is exploring ways to accommodate stablecoins and other digital currencies within its payments ecosystem.
Describing digital assets as technologies that are “here to stay,” Ogbalu praised the regulatory efforts of the Central Bank of Nigeria and the Securities and Exchange Commission.
He suggested that PAPSS could make further announcements regarding stablecoin integration in the near future.
AfCRA could help retain African capital
Ogbalu also spoke about the planned launch of the African Credit Rating Agency, AfCRA, scheduled to take place in Mauritius on October 7.
He said an African-led credit rating institution could provide assessments that better reflect the economic realities and context of African businesses and institutions.
“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.
The comments come amid growing efforts to deepen intra-African trade and reduce the cost and complexity of cross-border payments.
Africa’s cross-border payment market projected to hit $1tn
The development comes as Africa’s cross-border payments market is projected to experience significant growth over the coming decade.
A 2025 report by venture capital firm Oui Capital projected that the market could expand from $329bn in 2025 to $1tn by 2035, driven by fintech innovation, increased intra-African trade and wider adoption of mobile money.
The report also estimated that Africa loses about $5bn annually to foreign exchange inefficiencies, multiple currency conversions and inadequate payment interoperability.
Against this backdrop, the growing use of PAPSS by Nigerian churches, businesses and individuals highlights the expanding role of local-currency payment systems in connecting African economies.
The development also comes as Nigerian authorities push for more efficient payment infrastructure to support trade under the African Continental Free Trade Area.
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, had previously called for the development of a cross-border African payment card that would allow transactions between African currencies without relying on the US dollar or other third-party currencies.
