Feature/OPED
$40bn Net Reserves, Record Wealth, Relentless Poverty: Who Is Nigeria’s Economy Serving Today?
By Blaise Udunze
No doubt, it was a welcome announcement that Nigeria’s net foreign exchange (FX) reserves have surged by an astonishing 1,233 per cent from about $3 billion to over $40 billion. This would ordinarily be the kind of economic milestone that inspires optimism, coupled with gross external reserves of about $52.52 billion, which are sufficient to finance roughly 11 months of imports of goods and services. Penultimate week, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, presented the development at the end of the 306th meeting of the apex bank’s Monetary Policy Committee (MPC) as evidence that its reforms are working.
It is no surprise that around the same period, one would say that another important economic event occurred with the government sharing more money than ever before with the federal, state, and local governments, as the Federation Account Allocation Committee (FAAC) distributed a record N2.55 trillion, representing an increase of N250 billion over the N2.3 trillion shared in the preceding month.
Of course, the official figures are impressive numbers. Yes, anyone would conclude that the economy is becoming stronger, more stable and better positioned for growth. While this suggests stronger public finances, it also raises the question of whether these larger allocations are producing tangible improvements in the lives of ordinary Nigerians. More interesting is that another set of figures tells a completely different story.
According to the World Bank’s newly approved Country Partnership Framework for Nigeria, 61 per cent of Nigerians now live below the poverty line, while about 79 per cent are either poor or vulnerable to falling into poverty. More than 139 million Nigerians live below the poverty line. Over 86 million people lack access to electricity, while millions of young Nigerians enter the labour market every year with little prospect of decent employment.
The contradiction could not be starker. If reserves are rising, government revenues are increasing, and governments at all levels are receiving record allocations, why are the lives of ordinary Nigerians becoming more difficult?
This is the question policymakers must answer not with statistics, but with tangible improvements in the lives of citizens. If government agencies engineering these figures must know, these are not merely economic statistics; they are the lived realities by which citizens judge any government.
Foreign exchange reserves are not an economic trophy. They are a means to an end. Strong reserves are expected to stabilise the currency, reassure investors, strengthen the country’s ability to withstand external shocks and create an enabling environment for investment, production and employment.
But reserves alone do not feed families nor would they reduce their housing rents. They do not lower transport fares. They do not reduce school fees. They do not make healthcare affordable. Nor do they automatically create jobs.
Ultimately, this is to say that the success of macroeconomic reforms must be measured not by the strength of the CBN’s balance sheet but by the wellbeing of the Nigerian people.
Historically, unlike our dear country, countries that consistently build substantial foreign exchange reserves do so on the back of strong economic fundamentals. The fact is that they maintain sustained trade surpluses, export diversified products, attract large volumes of long-term foreign direct investment (FDI), develop globally competitive manufacturing industries and continuously improve productivity.
Nigeria, unfortunately, still struggles on nearly all these fronts. The country’s export earnings remain overwhelmingly dependent on crude oil. Non-oil exports remain relatively insignificant. Value-added manufacturing exports are weak. Another area that raises concern is agriculture, which continues to export mostly raw commodities rather than higher-value processed products despite being known previously as the country’s mainstay. With all these so-called developments, Nigeria still imports refined petroleum products, machinery, pharmaceuticals, industrial inputs and even food that could be produced locally.
This naturally raises an uncomfortable but legitimate question that requires an answer. Yes, it would be necessary to ask: How exactly has Nigeria grown and accumulated over $40 billion in net foreign exchange reserves without the structural fundamentals that typically support such reserve growth?
The apex bank has continued to credit exchange-rate reforms, improved transparency, stronger investor confidence and increased diaspora remittances. Well, it would be said that these achievements deserve recognition.
However, they do not completely explain the scale or, more importantly, the sustainability of the reserve accumulation.
Nigeria has not consistently recorded the large trade surpluses associated with countries that rapidly accumulate reserves. Oil production remains below historical capacity. Export diversification remains limited. Ease of doing business continues to be constrained by multiple taxation, infrastructure deficits, insecurity, policy uncertainty, logistics bottlenecks and unreliable electricity.
Without addressing these structural deficiencies, reserve accumulation risks becoming more financial than productive.
Equally important is the question of foreign direct investment. Governor Cardoso has argued that improved macroeconomic stability is attracting foreign investors. That may well be true. But confidence alone does not build factories.
The real question is how much fresh FDI has actually entered Nigeria’s productive sectors? How much has gone into manufacturing? How much into agro-processing? How much into export-oriented industries capable of generating sustainable foreign exchange earnings and creating jobs?
If reserve growth is being driven largely by short-term portfolio investments attracted by high interest rates rather than long-term productive investment, then Nigeria remains vulnerable. Portfolio investors can exit as quickly as they entered whenever global financial conditions change.
The unarguable fact is that foreign direct investment, by contrast, creates factories, expands production, develops supply chains and creates lasting employment. Nigeria desperately needs more of the latter.
The CBN also points to diaspora remittances as a growing source of reserve accumulation, projecting inflows of approximately $1 billion every month before the end of the year. Again, this is encouraging.
Again, the country will not be tired of asking questions because several of these questions deserve closer examination. How much of these remittances represent genuinely new inflows rather than funds previously routed through informal channels? Come to think of it, how much of these remittances finance productive investments instead of household consumption? Can diaspora remittances realistically become a permanent substitute for export competitiveness?
No economy has ever industrialised on remittances alone. A nation cannot sustainably depend on the sacrifices of its citizens abroad while failing to create opportunities for them at home.
Beyond the reserve figures lies another troubling contradiction. This is more disturbing because every month, FAAC distributes unprecedented sums to governments across Nigeria. Yet again, with daily regret, the average Nigerian struggles with deteriorating public services.
Honestly speaking, it has become so frustrating that the majority of the people who yearn for pleasant or attractive experiences are struggling as roads remain poor, public hospitals remain overstretched, schools continue to decline, electricity remains unreliable, water infrastructure remains inadequate, and youth unemployment remains widespread. Worst still, think of the cases as the nation continues to grapple with rising inflation, worsening poverty, declining purchasing power, struggling businesses and persistent insecurity.
One major contradiction is that if revenues continue rising while poverty deepens, then one unavoidable question must be asked: Where is the money going? Another pertinent question: How can the citizens be surrounded by water and still suffer from thirst or soap lather in their eyes?
This has been the predominant worry in the minds of many even as the World Bank itself acknowledges this disconnect. While praising recent macroeconomic reforms for improving fiscal stability, strengthening foreign reserves and restoring investor confidence, it concludes emphatically that the gains have not translated into meaningful improvements in living standards.
Ironically, despite the claims of declining inflation, it continues to erode purchasing power. Social protection remains weak. Most Nigerians remain trapped in low-productivity informal employment.
One contradicting and astonishing step taken recently is nowhere more evident than in the Central Bank’s monetary policy. Consider this: despite a marginal decline in headline inflation to 15.91 per cent in June 2026, the Monetary Policy Committee retained the benchmark Monetary Policy Rate (MPR) at 26.5 per cent, alongside a 45 per cent Cash Reserve Ratio (CRR) for commercial banks.
The decision reflects understandable caution. The CBN remains concerned that escalating geopolitical tensions in the Middle East could increase global energy prices, worsen imported inflation and reverse recent gains in price stability.
From a monetary policy perspective, this caution is defensible. But from the standpoint of businesses and households, the consequences are profound. An interest rate of 26.5 per cent inevitably translates into prohibitively expensive bank lending.
The ripple and adverse effects have led to manufacturers struggling to finance expansion. Another tough aspect is seeing the small and medium-sized enterprises, the backbone of employment generation, find access to affordable credit increasingly difficult. Entrepreneurs postpone investments. Factories delay expansion. Potential employers reduce hiring. Economic growth slows.
Ironically, while it is understandable that high interest rates may help stabilise inflation and attract foreign portfolio inflows that support reserves, it should be made known that they simultaneously suppress domestic investment, production and job creation.
In other words, the same policies helping strengthen the country’s macroeconomic indicators may also be constraining the real economy. Even the celebrated decline in inflation deserves closer scrutiny.
The national inflation rate may have eased marginally to 15.91 per cent, but this national average masks severe hardship across much of the country, which continues to create perpetual pain.
How best can this be figured out if data from the National Bureau of Statistics show that 19 states and the Federal Capital Territory recorded inflation rates exceeding 30 per cent, with Niger State above 42 percent and Kogi State exceeding 41 per cent?
Food inflation continues to rise, driven by increases in the prices of tomatoes, pepper, beef, yams, garri and other staple foods.
Businesses themselves remain unconvinced. The Organised Private Sector has welcomed the marginal moderation in inflation but insists that prices remain painfully high for both consumers and businesses.
Leaders of small business associations argue that market realities tell a different story from headline statistics. For millions of Nigerians, inflation is not measured by percentages. It is measured by empty shopping baskets. By reduced meal portions. By businesses shutting their doors. By families withdrawing children from school. By postponed medical treatments.
From a theoretical standpoint, macroeconomic stability is undoubtedly necessary. Without it, sustainable development is impossible. But it would also be agreed that macroeconomic stability alone is not sufficient. It can be argued further that economic reforms must eventually improve household incomes, reduce poverty, expand productive employment and raise living standards.
Otherwise, they risk becoming reforms that look impressive in economic reports but remain invisible in everyday life.
The truth remains that with the current situation, Nigeria therefore stands at a critical pivotal moment and the decisions taken now will determine its future.
The current reserve position should not become a destination for celebration but a foundation for deeper structural transformation. The country must diversify exports beyond crude oil. Strengthen manufacturing. Promote value-added agricultural exports. Improve electricity supply. Reduce the cost of doing business. Expand logistics infrastructure. Attract long-term productive investment.
In addition, support local industries with affordable financing. Strengthen institutions. Improve governance and ensure greater accountability for public spending. Only then will rising reserves translate into rising prosperity. Only then will record FAAC allocations produce visible development. Only then will macroeconomic stability become household stability.
The ultimate measure of economic success is not the number of dollars held in the Central Bank’s vaults. It is whether parents can afford school fees and housing rent. Whether young graduates can find decent jobs. Whether businesses can borrow, produce and expand. Whether families can afford food without sacrificing nutrition. Whether citizens feel that economic growth includes them.
Until those questions receive positive answers, one uncomfortable question will continue to linger. Who Is Nigeria’s Economy Serving Today?
Blaise, a journalist and PR professional, writes from Lagos and can be reached via: [email protected]
By Shmuel Ja’Mba Abm
In a report filed by The Business Standard on August 8, 2026, India, the current BRICS chair, opposes a proposal for a common currency to counter the US dollar.
The Indian Commerce Minister, Piyush Goyal, told reporters in Jaipur, Rajasthan, northwestern India, after a two-day BRICS trade and industry meeting, that India was not in favour of a BRICS currency. He added that India did not support the introduction of any such BRICS currency scheme.
It is good these things are showing signs at this early stage of attempts by BRICS member countries to crystallise a research finding published by a British economist at Goldman Sachs, Jim O’Neil, in 2001.
None of the leaders and country members of BRICS ever conceived on record the formation of such an economic or political bloc until the research publication, which spurred leaders of the mentioned countries to marshal resources and begin a dialogue of formalisation.
The current membership that started involuntarily with just Brazil, Russia, India, and China as a concept published by a research economist, that later included South Africa, now has 10 members – Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, United Arab Emirates, and Indonesia.
Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan, and Vietnam are designated partner countries that participate in framework meetings without full voting rights.
Originally, the publication by Jim O’Neil wasn’t intended or proposed as a vehicle for the political grouping that has drawn the attention of the rest of the world, as mentioned members took a step further from the appraisal or assessment paper to coalesce into a political force overflowing its original boundaries today.
For the above reasons, the initial step of early contacts was to take advantage of things in common in member countries for the stimulation of economic growth and global prosperity. At that stage, suspicions were managed, and plans didn’t consider historical political differences and disagreements as grounds for suspicion or discontinuation of cooperation.
Of course, China and India had trust issues over decades of border disputes. And in the early stages of heightened escalations of the Russian-Ukrainian relationship when India offered to mediate and broker for ceasefire and eventual peace, Russia wasn’t sceptical but took steps to host the Indian Prime Minister, Narendra Modi.
But at the back of the mind of the Russian-Indian relationship, history was revealing about betrayals, especially after what the country endured in assassinations of leading members of the Indian National Congress, that killed Indira Gandhi and swept her son, Rajiv Gandhi, and thereafter ravaged the family dynasty with threats of violence.
These paved the way for the emergence of the Bharatiya Janata Party, a Hindu nationalist party, and its leader, Narendra Modi. The BJP is not directly responsible for the intimidation and violent campaign against the INC, a close former Soviet-era ally of Russia, but a beneficiary. There are grounds to suspect a frosty relationship with Russia, although concealed in diplomatic niceties and global market dynamics of cross-border business and trade.
India turned into the redistribution hub of Russian discounted grains and oil supplies as a third country, after sanctions were imposed on Russia in what Russia described as demilitarisation and denazification special operations in Ukraine.
India is considered by Western powers as a democracy. It was once a British colony, gaining independence on August 15, 1947. It is also a member of the British Commonwealth of Nations. On a normal day, it doesn’t add or take away anything. But under these circumstances, these are serious factors to consider in arriving at a decision.
Be it as it may, China and Russia have found their way out in world trade, bypassing SWIFT. China operates the Cross-border Inter-bank Payment System, whilst Russia is running the System for Transfer of Financial Messages (SPFS). India has IMPS and NEFT. In principle, these payment systems bypass SWIFT and the US dollar, nonetheless.
As the world waits to hear India back its dissenting views with supporting facts, world trade will never remain the same again.
Shmuel Ja’Mba Abm has extensive scholarly publications that establish him as a leading academic expert in regional geopolitical dynamics and diplomatic relations in Africa. Author of e-monographs on geopolitics, ethnic conflicts, and political philosophy.
Feature/OPED
What Dangote’s Reported $40bn Private-Placement Valuation Could Mean for Nigerian Investors, NGX
Dangote Petroleum Refinery could become an unusually large part of Nigeria’s stock market if its eventual IPO valuation is close to the roughly $40 billion implied by a recent private placement.
EBC Financial Group (EBC) highlights that this would value the refinery at about N54.63 trillion, using the Central Bank of Nigeria (CBN) Nigerian Foreign Exchange Market rate of N1,365.6856 per USD on August 7. Against the N158.513 trillion value of companies listed on the Nigerian Exchange (NGX) on the same date, adding the refinery at that value would produce a market worth about N213.14 trillion, with Dangote Refinery accounting for 25.6%.
This scenario assumes the full $40 billion equity value is reflected in NGX market capitalisation and other listed company values remain unchanged. At that size, movements in the company could become highly visible across the Nigerian equity market, although its actual influence on NGX indices may depend on the shares available for public trading and the relevant index rules.
David Precious, Senior Market Analyst at EBC Financial Group, said: “If Dangote Refinery entered the Nigerian Exchange at close to a $40 billion valuation, it could account for roughly one-quarter of the resulting NGX market value. If that valuation is difficult to support, few shares are available for public trading, or investors need to reduce other Nigerian holdings to participate, the effects could extend across Nigeria’s equity market, including existing NGX-listed companies and their shareholders.”
A Private Transaction Can Indicate Value, but Public Investors Need Financial Evidence
Based on the private transaction, $40 billion provides an indication of Dangote Refinery’s value, but it does not establish the eventual IPO price. Details published on August 4 said a $2.5 billion private placement for a 6% stake implied a valuation of roughly $40 billion. The proposed initial public offering (IPO) was reported to target about $5 billion, while the eventual IPO valuation and percentage offered to the public were not disclosed. This is important as a private transaction may produce a different valuation from the price a broad group of public investors is prepared to accept.
For context, public equity market values cited alongside the transaction were about $12 billion for Türkiye’s Tupras and $16 billion for US-listed HF Sinclair. The Dangote figure is about 3.3 times Tupras and 2.5 times HF Sinclair. They are not direct comparisons because profitability, debt, operations and growth plans differ. The gap nevertheless increases the need for audited earnings, cash flow, debt and investment plans that explain what supports the higher valuation.
The reported $5 billion fundraising target is equivalent to about N6.83 trillion at the August 7 exchange rate, or approximately 4.3% of the N158.513 trillion existing NGX market value. Proposed $5 billion raise. If new Nigerian or foreign money funds the offer, the pool of capital invested in Nigerian equities could expand. If investors sell current holdings to participate, capital could instead move away from other listed companies.
Publicly Tradable Shares and New Investment Could Shape the Wider Market Impact
NGX rules show why total company value does not tell investors how much stock they can actually trade. Main Board companies can qualify through either 20% public ownership held by at least 300 shareholders or publicly tradable shares worth at least N20 billion. The Premium Board value alternative is N40 billion. Holdings controlled by promoters, directors and close relatives, government, or strategic investors owning at least 5% are excluded from qualifying public shares.
This means a company worth tens of trillions of naira could still have a much smaller amount of stock available for regular trading if ownership remains concentrated. The key issue is therefore how much of Dangote Refinery becomes accessible to public investors and how widely those shares are held.
Regional investment could also affect the outcome. Details published on 4 August indicated engagement involving South Africa, Kenya, Egypt, Ghana and Rwanda, including possible Kenyan participation of up to $500 million, although no allocations were confirmed. The Johannesburg Stock Exchange separately said Dangote Group had shown strong intent to pursue a South African listing after Nigeria. Regional participation in the Nigerian offer could bring new capital directly into Nigerian equities. A later South African listing could broaden access but would not itself increase money raised through the Nigerian IPO.
Pension funds face the same question of capital allocation. The National Pension Commission (PenCom) waived the usual existence, profitability and dividend requirements so Pension Fund Administrators can consider the IPO, while retaining internal investment policies, risk-management requirements and duties to contributors and retirees. PenCom Circular on Dangote Refiner. PenCom states that the dispensation is exceptional, one-off and specific to this proposed IPO.
Pension funds held N5.907 trillion in domestic ordinary shares at the end of June, compared with the offer’s approximately N6.83 trillion equivalent. This does not imply pension funds would finance the offer. It shows why managers must consider exposure to one company and whether participation requires reducing other investments.
Precious added, “Dangote being listed could become a turning point for Nigeria’s equity market if it brings wider public ownership and additional African capital. Investors still need clear evidence supporting the valuation, clarity on how much of the company they can trade and an explanation of where the money raised will go. Those answers will determine whether the listing expands the Nigerian equity market or concentrates more investment around one company.”
An approved prospectus should clarify the valuation, shares offered, public ownership and use of proceeds. The Securities and Exchange Commission (SEC) said on June 23 that no IPO application had then been filed or approved and ordered unauthorised pre-marketing to stop. Details published on 4 August later said an IPO application had been submitted, with regulatory approval expected in the following weeks. Until final terms are disclosed, the test for Nigeria is whether the listing combines a supportable valuation with broad public ownership and genuinely additional investment.
Feature/OPED
Moving the Stablecoin Conversation From Hype to Utility in Africa’s Next Payments Evolution
By Rajat Mishra
For much of the past decade, discussions around stablecoins have been dominated by cryptocurrency speculation. Increasingly, however, stablecoins are emerging as practical financial infrastructure for moving money across borders, managing liquidity and improving payment efficiency.
The real opportunity lies not in choosing between traditional finance and digital assets, but in building an integrated financial ecosystem where both work together to improve efficiency, broaden financial access and deepen economic connectivity across the continent.
Despite significant advances in financial inclusion and digital payments, moving money across African borders remains far more difficult than it should be. Businesses continue to face challenges when making cross-border payments. Fragmented payment networks, multiple intermediaries, and lengthy settlement processes increase costs and create operational inefficiencies.
Remittance providers, the specialised financial services that millions rely on to send money home, face many of the same structural challenges. These providers play a critical role across the continent. In fact, 19 of Africa’s 54 countries receive remittance inflows equivalent to at least 4% of their GDP. Yet Africa remains the world’s most expensive region to send money to.
These challenges are not a reflection of remittance providers themselves, but of the fragmented banking and settlement infrastructure underpinning international money movement. Financial institutions must often manage liquidity across multiple disconnected currency markets while relying on complex correspondent banking networks and clearing systems. The result is higher costs, slower settlements, and capital that remains unnecessarily locked up.
One of the most immediate opportunities for stablecoins lies in improving cross-border settlement. Consider a Kenyan business importing goods from South Africa. Under traditional settlement models, payments often pass through multiple correspondent banking relationships, involve several foreign exchange conversions, and can take days before funds reach the intended recipient.
Stablecoin-enabled settlement rails have the potential to reduce much of this friction by enabling value to move more efficiently between financial institutions across markets. The result can be shorter settlement times, greater transparency and improved predictability for businesses operating across borders.
The benefits extend well beyond businesses. For millions of Africans working abroad, remittances remain a financial lifeline, helping families pay school fees, healthcare costs and daily living expenses. Yet sending money home often involves navigating a complex chain of money transfer operators, correspondent banks, and local payout partners, with each additional layer introducing costs and delays.
Stablecoins can help streamline the backend movement of funds between institutional participants, reducing settlement costs and improving efficiency across the value chain.
For end users, the advantage is simplicity. Recipients do not need to interact with, or even understand stablecoins directly. They continue to receive money through familiar, trusted channels, whether a local bank account or mobile money wallet, only faster and at a lower cost.
Beyond payments, stablecoins also address one of the less visible but most significant challenges in cross-border finance: liquidity management. Financial institutions operating across multiple markets must constantly ensure they have sufficient funds in the right currency, in the right jurisdiction and at the right time. Today, this often requires pre-funding accounts across multiple countries, a costly practice that traps large amounts of capital and limits financial flexibility.
Stablecoins introduce a new model for moving value across borders in near real time, enabling institutions to manage liquidity dynamically as demand arises. This can reduce the need for large pre-funded balances, improve treasury efficiency and free up capital that can be deployed more productively. Ultimately, these efficiencies can translate into faster settlements, lower costs, and better services for businesses and consumers alike.
However, the true value of stablecoins will not come from isolated blockchain networks operating independently of existing financial systems. Their long-term impact will depend on how effectively they integrate with banks, mobile money platforms, payment service providers and existing payment infrastructure. Interoperability will be critical to ensuring payment flows move seamlessly between systems, markets and currencies. The goal should be to strengthen and modernise today’s payment ecosystem, not replace it.
From experiment to infrastructure: what global moves are telling us
Some of the clearest signals that stablecoins are moving from experimentation to infrastructure are coming from card networks. Mastercard’s reported agreement to acquire BVNK, valued at up to $1.8 billion, points to a strategic investment in the settlement layer connecting stablecoin rails with traditional banking and reflects growing institutional confidence in stablecoin-enabled cross-border payments.
Visa’s expansion of stablecoin-backed cards through Stripe’s Bridge to more than 100 countries reflects a complementary strategy. Rather than acquiring infrastructure outright, Visa is leveraging its existing global network as the final distribution layer for stablecoin-funded payments.
The inclusion of African markets is particularly significant. It signals growing confidence that stablecoin-backed payment instruments can operate alongside, and in some cases complement, the mobile money ecosystems that already dominate wallet-based payments across much of the continent.
Taken together, these developments point to a broader shift. Card payment networks are moving from observing the stablecoin conversation to investing directly in the infrastructure that underpins it. For Africa, the implication is not that stablecoins will replace existing payment rails, but that success will increasingly belong to institutions capable of orchestrating multiple settlement rails – cards, bank transfers, mobile money and stablecoins- within a unified, interoperable ecosystem. Local market expertise, regulatory relationships and last-mile distribution will remain decisive competitive advantages.
Building for scale through trust and regulation
But despite their potential, stablecoins cannot operate outside the boundaries of regulated financial systems. Their long-term viability across Africa depends on clear regulatory frameworks, robust compliance standards and trusted infrastructure that supports transparency, risk management and consumer protection.
We are already seeing this evolution. In markets such as South Africa, institutions facilitating cross-border settlements must navigate increasingly sophisticated regulatory requirements, including approvals for certain offshore crypto-related activities. Globally, initiatives such as the OECD’s Crypto-Asset Reporting Framework (CARF) and expanded Travel Rule obligations are raising expectations around reporting, tax transparency and compliance.
These developments reinforce a simple reality: stablecoin infrastructure does not reduce compliance obligations. It raises the bar for governance, transparency and institutional risk management. The objective is not to bypass regulation, but to build interoperable payment systems that can innovate confidently within it.
From the edges to the plumbing
The stablecoin conversation is steadily moving beyond speculation and towards practical implementation. What once sat at the edges of the payments debate is becoming part of the plumbing of cross-border finance rather than a parallel system to it.
The question is no longer whether stablecoins have a role to play in payments. The question is where they deliver the greatest value. In Africa, that value is increasingly clear: faster settlement, improved liquidity efficiency and more connected cross-border commerce. The winners will not be those that replace existing financial systems, but those that successfully connect stablecoin rails with the banks, mobile money networks and payment providers that already power the continent’s economy.
For pan-African payment networks such as Onafriq, the priority is ensuring that emerging technologies complement the financial infrastructure businesses and consumers already trust, rather than introducing new layers of complexity.
The opportunity lies in connecting stablecoin settlement with banks, mobile money networks and payment providers, ensuring the benefits of this new infrastructure deliver tangible outcomes for African businesses and consumers.
Rajat Mishra is the CPO for Network Product & Deputy Group CPIO at Onafriq
