Payments Between Businesses Are Suffering As Nigeria Promotes A Cashless Economy

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According to Yele Oyekola, CEO and co-founder of Lagos-based B2B FinTech company Duplo, Nigeria’s attempts to limit cash withdrawals from government accounts in a bid to digitize its economy has been a “massive hindrance” to the nation’s adoption of business-to-business (B2B) payments.

“The government and central bank didn’t waste any time — we went from zero to one hundred in a matter of days.” “They didn’t give residents enough time to adjust to the unexpected change, which has now completely affected payments,” Oyekola noted in an interview.

He says, however, that the circumstance has created an opportunity for scammers to exploit.

When SVB collapsed in mid-March, the most pressing concerns for enterprises — and, by extension, banks and FinTechs — were whether deposits could be accessed and if they could make payroll and pay suppliers. The result for businesses that had their cash tied up with SVB as their main source of banking services may have been a severe halt in operations or perhaps insolvency. Simply put, a company’s capacity to make payments may make or ruin it.