Fiducia to Drive Growth in Nigeria’s Supply Chain Financing to N12trn

Emma Okonji

In order to improve trade relationships between buyers, suppliers and financiers in the supply chain finance ecosystem, Fiducia, a technology-leveraged supply chain financing platform, has rolled out the first-of-its-kind solution that will further drive growth of Nigeria's supply chain financing market from its current value of N3 trillion to about N12 trillion in the next few years.

Speaking at the launch of the solution in Lagos last week, the Chief Executive Officer of Fiducia, Imohimi Aig-Imoukhuede, said Fiducia was founded with the purpose of levelling the playing field for Small and Medium Enterprises (SMEs) and other business owners in Africa by unlocking the value of their supply chains.

According to him, the International Finance Corporation (IFC) currently estimates the value of Nigeria's existing supply chain financing sector at around N3 trillion. If the country's currently excluded SME supply chains could be brought into play, an additional N9 trillion could be unlocked for Nigeria's economy.

Supply Chain Finance is emerging as an effective instrument to reduce financing gaps in developing markets. The current supply chain finance meets only about 24 per cent of the potential market. MSMEs are estimated to generate more than half of the supply chain finance opportunity according to the IFC.

"Today, Fiducia is successfully driving inclusive GDP growth by broadening financial inclusion – as a wider pool of small and mid-sized businesses enter Africa's financial markets on the same terms and rates previously only available to large corporates. Fiducia's financial services and funding partner ecosystem includes many of Africa's top developmental finance institutions, equally committed to solving Africa's supply-chain finance challenges," Aig-Imoukhuede said.

Chairperson, Fiducia, Ms. Bunmi Lawson, said: "Considering the size of MSMEs in Nigeria and the severe effect of big corporates’ payment cycles, the supply chain financing market remains largely untapped. By leveraging cutting-edge technology, building a community of financiers and suppliers, we offer businesses an opportunity to unlock the true potential of their supply chain"