PAPSS implementation will aid diversification – SEC

The Securities and Exchange Commission (SEC) has said that it is enthusiastic about the implementation of the Pan-African Payment Settlement System (PAPSS) as it will encourage intra-African trade and aid diversification within the capital market.

This was stated by Head, Office of the Chief Economist of the SEC, Dr. Okey Umeano during an interview in Abuja.

The Nigerian Exchange and the Pan-African Payment Settlement System recently signed a Memorandum of Understanding to support cross-border payments across capital markets in Africa.

According to Umeano, “this MoU begins to implement something that we have been very excited about. PAPSS makes it easy to trade across Africa. It makes Intra-African trade more efficient and we have always wanted it.

• BREAKING: CBN has directed banks to dispense old notes – Soludo
• Naira crisis: Oluwo empowers subjects with cash, food items, machines, others

“It was created initially for just the usual everyday trade but we have always wanted it for the capital market because we think that if we can link the exchanges and the markets across the continent we will have a bigger opportunity set for everybody, so we have been working on that.

“We have two projects the West African Capital Market Integration project and the African Exchanges Linkage project but the problem we have always had was how to settle, how do we make payments happen? If I want to buy a Ghanaian stock, do I have to change my naira to dollars and then from dollars back to cedi and all that? These were all the problems we had but with PAPSS, we can make this trade more efficient and easier. I can trade in naira and whoever I am buying from in Ghana or wherever in Africa receives in the local currency so this is a good thing and we thank Afrexim bank.”