Nigerian firms encounter elevated costs in international commerce due to unpredictability in cross-border fund transfers, as reported by Nairametrics. Kelvin Efosa Obasuyi, who leads Vector Innovation and co-founded 56 Capital, states that these settlement gaps force companies to retain more capital to satisfy orders and sustain inventory levels. He notes that a company might possess the necessary funds for a deal but fail to deploy them when required, creating significant operational strain.
The publication details how this timing mismatch affects various trader types. Importers may settle invoices while suppliers wait for cleared funds before shipping goods, whereas exporters might finish orders yet lack access to proceeds for subsequent production. Entities dealing in multiple monetary units could possess balances in one location while facing immediate obligations elsewhere that remain unmet. These scenarios elevate working capital demands, potentially triggering extra borrowing or postponed acquisitions for firms with limited financial reserves.
Obasuyi’s view stems from his tenure at 56 Capital, Duplo, and Vector, where he addressed hurdles in securing capital and moving money. He emphasizes that lending facilities and payment timing must be evaluated jointly. When settlement lags extend the cycle of buying, shipping, and collecting, the required financing grows even if the initial order stays profitable. The expense exceeds transfer charges, encompassing the period funds stay committed and the reserves kept to hedge against uncertainty.
These effects reach international partners, including British vendors and Nigerian distributors. Uncertainty shapes trade conditions, as suppliers might demand early payment and buyers might keep extra reserves. Nairametrics notes that the Financial Stability Board’s 2025 assessment identified limited advancement in global payment metrics since 2023. Obasuyi suggests providers should look beyond transaction counts, focusing on actual settlement durations and beneficiary fund access to offer clearer planning bases for enterprises.
Lenders and business owners must scrutinize payment setups alongside operational cycles. Obasuyi contends that securing funds and using them efficiently require joint consideration, as firms need infrastructure enabling productive fund usage across markets. This strategy aims to minimize unnecessary lags and supply precise data when transactions need intervention, ultimately determining if a company can complete its next order and sustain an international trading link.