Fiducia, a technology-leveraged supply chain financing platform, has rolled out the first-of-its-kind solution to catalyse the growth of Nigeria’s supply chain financing market to #12 trillion.
Fiducia is an innovative platform that connects corporate buyers, suppliers and financiers in a digital marketplace where invoices can be financed and traded.
By leveraging the credit profiles of their corporate buyers, Fiducia provides suppliers access to lowest-cost financing while preserving the liquidity of corporate buyers. For corporate buyers and suppliers alike, Fiducia strengthens cashflow without materially impacting client on-balance sheet loan profiles.
At the launch, Chief Executive Officer of Fiducia, Imohimi Aig-Imoukhuede, said the International Finance Corporation (IFC) currently estimates the value of Nigeria’s existing supply chain financing sector at around #3 trillion, adding that if the country’s currently excluded SME supply chains could be brought into play, an additional #9 trillion could be unlocked for Nigeria’s economy.
“For financiers, Fiducia provides access to a greatly expanded pool of previously overlooked corporates and newly de-risked suppliers seeking financing.
“Supply Chain Finance (SCF) is emerging as an effective instrument to reduce financing gaps in developing markets. The current SCF supply meets only about 24per cent of the potential market. MSMEs are estimated to generate more than half of the SCF opportunity according to the IFC.”
Imohimi Aig- Imoukhuede said Fiducia is founded with the express purpose of levelling the playing field for business owners in Africa by unlocking the value of their supply chains.
“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 disclosed that Fiducia was a game-changer for smaller businesses and mid-sized corporates, as they historically wasted resources on complex, time-consuming funding application processes that seldom delivered the desired results.
He assured partners and stakeholders of strictest adherence to both Nigerian and global best practices including data privacy and security supported by an effective legal framework in demonstration of commitment to trust as reflected in the company’s name.
Fiducia is the latest venture from Trium, a venture builder platform focused on digital technologies that have the potential to fundamentally improve lives. Trium sits within the Coronation ecosystem renowned for providing transformational solutions to Africa’s unique challenges.
Also, Senior Associate, Digital Regulations at Stears, Mrs. Adaobi Oni-Egboma, said Fintechs and new firms are creating digital footprints for MSMEs and opening up new lending opportunities for banks to partner as capital providers.
Oni-Egboma added that as an alternative financing model for MSMEs, SCF is emerging as an effective instrument to reduce financing gaps in developing countries.
Earlier in her welcome address, Chairperson for Fiducia, Ms. Bunmi Lawson, said the global financial landscape is evolving and so are expectations and demands of businesses.
Lawson said: “Considering the size of MSMEs in Nigeria, and the severe effect of big corporate non-payment circles, the SCF market, remains largely untapped in Nigeria. We are here to empower Nigeria businesses to thrive.”
On his part, Chairman, Coronation Group, Aigboje Aig-Imoukhuede, said the inability to solve credit problem for MSMEs is a failure on the part of the banking industry.
Aig-Imoukhuede emphasised that the current SCF supply met only about 24 per cent of the potential market, stressing that MSMEs are estimated to generate more than half of the SCF opportunity according to the IFC.
“Fiducia is founded with the express purpose of levelling the playing field for business owners in Africa by unlocking the value of their supply chains.