Tinubu seeks stronger support for Afreximbank

President Bola Tinubu on Friday urged African countries to strengthen their support for Afreximbank and adopt a continent-wide local currency trade platform to reduce dependence on foreign exchange and improve economic resilience.

Speaking at the 32nd Annual Meetings of the African Export-Import Bank in Abuja, Mr Tinubu said Nigeria has formally approved the Pan-African Payment and Settlement System (PAPSS), which enables cross-border trade in African currencies.

He called on other African leaders to do the same.

PAPSS, developed by Afreximbank and backed by the African Union, launched its exchange platform this week after a year-long pilot. The system was built in partnership with Interstellar, a blockchain firm based in Cameroon.

“I urge all African nations to embrace PAPSS because deeper financial integration strengthens our collective resilience,” he said.

The payment system, developed by Afreximbank and the African Continental Free Trade Area Secretariat, is designed to ease intra-African trade by allowing transactions in local currencies and reducing the need for hard currency like the US dollar.

Mr Tinubu also called for increased capital support to Afreximbank, which he described as a vital institution for Africa’s economic development. “Let us strengthen financial support to Afreximbank to scale its transformational impact,” he said.

Afreximbank’s expanding role

Founded 32 years ago, Afreximbank has grown into one of Africa’s key development finance institutions, mobilising over $250 billion for trade and development, including $140 billion in the last decade.

Under the leadership of President Benedict Oramah, the bank’s total assets have grown from $5 billion to over $37 billion.

President Tinubu praised the bank’s role in supporting Africa’s pandemic response, industrialisation, and trade facilitation, including the African Continental Free Trade Area (AfCFTA).

He said Nigeria alone had received more than $52 billion in financing from the bank, supporting projects in energy, manufacturing, healthcare, agriculture and the creative economy.

Flagship projects include the Dangote and BUA refineries, the African Medical Centre of Excellence in Abuja, and the Africa Quality Assurance Centre.

Economic reforms

Mr Tinubu used the occasion to highlight the impact of his administration’s economic reforms. Since taking office in May 2023, Nigeria has scrapped the petrol subsidy and unified exchange rates, among other fiscal adjustments.

According to him, these reforms have begun yielding results. He said Nigeria recorded 3.4 per cent GDP growth in 2024, with oil production rebounding to 1.5 million barrels per day and inflation beginning to ease.

He added that debt servicing has dropped from 96 per cent to below 65 per cent of revenue, while investor confidence is returning.

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Mr Tinubu also referenced the passage of four tax reform bills, which he signed into law earlier, as part of efforts to improve revenue and reduce distortions in the fiscal system.

The president said Nigeria was deepening its collaboration with Afreximbank in energy, logistics and food security.

He announced plans for the launch of the Africa Energy Bank, headquartered in Abuja, with $5 billion in capital to finance Africa’s energy transition.

He said the country’s fertiliser production capacity is being scaled up to 7.5 million tonnes annually with Afreximbank’s support, positioning Nigeria as a continental fertiliser hub.

Other major projects supported by the bank include the $3.5 billion Bakassi Deep Seaport and fibre-optic cable deployment for digital inclusion. He said 279 roads had been completed, with 65 more under construction and 260 rural road interventions in progress.

Mr Tinubu concluded by calling on African leaders to see intra-African trade not as an end in itself but as a strategic tool for job creation, value chain development and economic stability.

“The world will not wait for Africa,” he said. “A united and purposeful Africa can define its destiny.”

The Afreximbank meetings continue through the weekend with high-level sessions on trade finance, creative industries, logistics, and energy transition.