KEY POINTS

• Payaza pays back $13.9 million in commercial paper with no problems.
• Payaza’s payback is a sign that Nigeria’s banking industry is growing up.
• The next step in the company’s $34.1 million growth is coming up.

Seyi Ebenezer, a Nigerian businessman, started Payaza Africa, a digital payments firm in Lagos. The business has paid back $13.9 million of its $34.1 million commercial paper program.

The company is becoming more trustworthy in Nigeria’s domestic debt market because it has paid back its Series 3 and Series 4 issuances. This makes investors feel better about their money.

Payaza earns investors’ trust by paying them their money back

The N20.3 billion ($13.85 million) refund is part of Payaza’s N50 billion ($34.11 million) program that has multiple parts. This follows the repayment of N14.97 billion ($10.21 million) from Series 1 and N5.36 billion ($3.66 million) from Series 2, both issued in 2024.

The program’s money helped Payaza grow in Africa, improve its merchant services, and improve its transaction technology. The entire payback proves that Payaza is good with money and that it is one of the most responsible fintech borrowers in Nigeria.

Payaza’s payback shows that the fintech industry is growing up

Most fintech companies in Nigeria acquire their money from venture capital, thus the successful payback is a big deal for the industry. Payaza’s ability to get money via local debt markets shows that fintechs can get money without giving up ownership of their businesses.

It also shows that the fintech industry is maturing, since investors are more likely to see competent businesspeople as good corporate borrowers. Since 2022, new issuers have entered the commercial paper market, mostly IT companies that need cash flow because it’s getting harder to secure loans from banks.

Payaza earns investors’ trust in its management and financial discipline by completing its obligations on schedule. This is especially crucial in an economy where inflation and exchange rates are not stable.

The next step in Payaza’s expansion

Payaza, which began in 2020, is run by the Central Bank of Nigeria. It offers an API-based payment mechanism that makes it easy to do business in all of Africa.

When the loan is paid back, the company will go on to the next leg of their $34.1 million fundraising drive. This will mean making its payment network better, working more closely with authorities, and letting more people use financial services.

Payaza is one of the only African fintechs that offers commercial papers and pays them back in full. This helps them look even better as a business that is both creative and good with money.