FG Pushes African Cross-Border Payment Card to Boost Trade and Reduce Dollar Dependence
The Federal Government has unveiled plans to champion the creation of an African cross-border payment card that would allow seamless transactions between African currencies without relying on the U.S. dollar or other foreign intermediary currencies. The proposal, aimed at strengthening trade across the continent under the African Continental Free Trade Area (AfCFTA), was presented by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, during a meeting with Mastercard Chief Executive Officer Michael Miebach and his delegation in Abuja.
According to the minister, the current payment system across Africa remains inefficient because many transactions between African countries are first converted into foreign currencies before reaching their final destinations. This process often increases transaction costs, exposes businesses to exchange rate risks, and slows down cross-border trade. Oyedele stressed that Africa now has a unique opportunity to develop a modern payments infrastructure that allows direct settlement between local currencies, making business transactions faster and more affordable.
Using a practical example, the minister explained that an African payment card could enable users to make payments directly from the Nigerian naira to the Kenyan shilling or South African rand without involving a third currency. He noted that such an innovation would support economic integration, strengthen regional trade, and unlock new opportunities for businesses and consumers across the continent. The proposal aligns with ongoing efforts to deepen financial connectivity and accelerate economic growth within Africa.
Beyond payment systems, Oyedele called on Mastercard to help expand consumer credit access in Nigeria, highlighting the country’s low credit card penetration despite reforms aimed at strengthening the credit ecosystem. He revealed that obtaining a credit card remains difficult even for top government officials and high-income earners. The minister argued that wider access to credit would stimulate consumer spending, improve financial inclusion, and support broader economic development. He added that government reforms are already encouraging greater participation in the formal economy, with over 10,000 informal businesses reportedly seeking registration daily.
The minister also pointed to Nigeria’s growing reputation as Africa’s leading fintech powerhouse, noting that five of the continent’s nine fintech unicorns are based in the country. He assured investors of continued policy stability and a supportive business environment while encouraging Mastercard to deepen its investments in Nigeria. In response, Mastercard CEO Michael Miebach reaffirmed the company’s commitment to the Nigerian market, praising ongoing economic reforms and expressing confidence in the country’s future. He said Mastercard would continue supporting initiatives that drive financial inclusion, digital payments, skills development, and small business growth, further strengthening Nigeria’s position in Africa’s evolving digital economy.
source: The guardian