Lagos, Nigeria — For many traders across West Africa, doing business across borders is still a headache. Imagine a Lagos-based trader who has just finalized a deal with a supplier in Accra. The goods are ready, the price agreed, and the relationship is solid. But when it comes to sending payment, everything grinds to a halt.
Bank transfers take three to five days, often accompanied by high fees and currency losses. Mobile money platforms, widely used for domestic transactions, rarely work across borders. Paying in cash is risky, slow, and expensive. The result: deals delayed, businesses frustrated, and millions of naira lost in opportunity costs.
Dr. Sam Ikoku, CEO of NAKACHI Consulting, says this friction is costing the continent an estimated ₦50 trillion annually in lost or delayed intra-African trade.
“The African Continental Free Trade Area (AfCFTA) was supposed to create a single market of 1.3 billion people and a GDP of $3.4 trillion,” Ikoku said during an interview. “But a single market without a single payment system isn’t really a single market. Right now, it’s 54 fragmented markets pretending to be one.”
Despite the explosion of mobile payments in countries like Nigeria, which surpassed ₦500 trillion in transactions in 2024, these systems remain largely incompatible across borders. Even companies operating in multiple countries, such as MTN, cannot allow users to transfer money seamlessly between countries.
“This isn’t a technology problem,” Ikoku explained. “It’s an execution problem. We have the tools; we just haven’t implemented them effectively.”
Ikoku envisions a unified system that allows real-time mobile payments across Africa, with transparent fees, automatic currency conversion, and harmonized security and KYC standards. Such a system, he says, could finally unlock the full potential of AfCFTA and enable businesses to thrive.
He points to the Pan-African Payment and Settlement System (PAPSS), developed by Afreximbank, as a step in the right direction. But adoption remains fragmented.
“We are facilitating high-level discussions with ECOWAS and AES officials to fast-track adoption,” Ikoku said. “Our goal is that within 18 months, anyone in West Africa should be able to send money across borders instantly using their mobile wallet. This is not a dream—it’s an execution challenge.”
For small and medium enterprises (SMEs), this isn’t just a technical issue—it’s a daily struggle that can determine whether a business thrives or fails. Traders spend hours navigating banks and intermediaries, losing precious time and money that could be spent on growth.
“Every delayed transaction affects supply chains, pricing, and customer trust,” Ikoku said. “Seamless cross-border payments aren’t just a convenience; they are essential to productivity, economic growth, and regional integration.”
Looking Ahead
NAKACHI Consulting is working with governments, financial institutions, and industry stakeholders to address these barriers. By combining technology with strategic execution, the firm hopes to create a truly interoperable payment system that can underpin trade across the continent.
If successful, West African businesses could see a dramatic reduction in transaction delays and costs, opening the door to a more integrated, efficient, and prosperous regional economy.
“Mobile payment interoperability is the circulatory system of AfCFTA,” Ikoku said. “Without it, trade flows slowly and expensively. With it, Africa’s markets can move as one.”