The platform, powered by C2FO and backed by the International Finance Corporation, connects suppliers, large companies and financial institutions on one system.

It allows businesses, especially micro, small and medium enterprises (MSMEs), to access cash tied up in approved invoices without collateral.

At full scale, the platform is projected to generate between $25 billion and $30 billion in annual financing for businesses in Nigeria.

CycleFlow Nigeria Chairman, Segun Ogunsanya, says the launch is designed to solve a basic problem where many small businesses deliver goods or services and wait 60 to 120 days to get paid. During that period, they find it difficult to fund operations, pay staff or take new orders.

With this system, once an invoice is approved by a large buyer, the supplier can choose to receive payment early at a discounted rate. The money can come from banks or the buyers themselves.

Segun Ogunsanya, chairman of CycleFlow Nigeria, said the platform addresses a core challenge in the financial system.

“By enabling immediate access to funds locked in accounts receivable, we are not just financing businesses; we are powering economic growth across the entire ecosystem.”

Across Africa, MSMEs make up about 90% of businesses and account for up to 80% of employment. However, access to credit is still limited. In Nigeria, many of these businesses cannot meet bank requirements such as collateral or long credit histories.

CycleFlow takes the risk away from the small business and ties financing to the credit strength of the larger buyer. That structure allows suppliers to access funds faster and on better terms.

On the economic impact, data from the IFC shows that every $1 million in financing for small businesses can create an average of 16.3 direct jobs over two years.

At scale, the platform could support more than 480,000 direct jobs in Nigeria, with indirect employment running into millions.

Mohamed Gouled, IFC’s vice president for Products & Clients, said the model changes how businesses access capital.

“Millions of MSMEs across Africa are sitting on receivables they cannot convert into much-needed capital to grow and hire. This platform changes that equation.”

The system also removes several limitations common in traditional lending. There are no loan applications, no collateral requirements and no lengthy approval processes. Suppliers decide when to access funds and at what cost.

Alexander “Sandy” Kemper, founder and CEO of C2FO, said the launch in Nigeria marks the start of a bigger expansion.

“This launch kicks off our broader strategy to bring affordable liquidity solutions across Africa and other emerging markets worldwide.”

The platform already operates globally and processes millions of invoices daily. It has funded hundreds of billions of dollars in working capital to businesses since its launch.

CycleFlow’s launch in Nigeria comes as the government focuses on stronger support for small businesses. MSMEs are important to job creation and economic growth but still face funding constraints.

Linking buyers, suppliers and financiers in one system, the platform is expected to improve cash flow across supply chains and reduce delays that slow business activity.

SMEs no longer need to wait months to be paid, they can access their money in days.

Aimed at strengthening the company’s working capital, this development was executed under MTN’s ₦250 billion commercial paper programme. 

The Series 11 and 12 issuances, which were priced at 27.5% and 29% for the 181-day and 265-day tenors respectively, saw strong participation from institutional investors, including asset managers, banks, and insurance companies.

The issuance’s success is noteworthy given the challenging financial conditions and the temporary exclusion of pension funds, which had previously been active participants. 

Despite this, the commercial paper saw a 150% subscription, reiterating investor confidence in MTN Nigeria’s ability to weather financial volatility. 

The proceeds will be used to address short-term funding needs as the company scales through its working capital requirements.

MTN Nigeria has been having financial setbacks, including a huge loss after tax of ₦514.9 billion for the nine months ending September 2024. 

This loss was attributed to the devaluation of the Nigerian naira and the subsequent foreign exchange losses, which led to a rise in finance costs. 

However, the company has reported commendable growth in service revenue, which increased by 33.6% year-on-year, driven by a surge in data and fintech services.

Raising funds through this commercial paper issuance is part of MTN Nigeria’s goal to diversify its financing options, particularly in light of high interest rates and ongoing monetary policy adjustments. 

This provides much-needed liquidity and enhances trust in the company’s long-term prospects despite the stressful economic challenges.