A new technology solution, Fiducia, has been launched to unlock N9 trillion into Nigeria’s supply chain financing market.
Speaking at the event in Lagos, the Chief Executive Officer (CEO) of Fiducia, Imohimi Aig-Imoukhuede, said Nigeria would unlock N9trn into its economy if the thousands of SMEs currently excluded in supply chains were captured by the new technology.
According to Aig-Imoukhuede, the International Finance Corporation (IFC) has estimated the value of Nigeria’s existing supply chain financing sector at around N3 trillion and the number could hit 12trn soon.
Explaining how Fiducia works, he said it is a platform that connects corporate buyers, suppliers, and financiers in a digital marketplace where invoices can be financed and traded.
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By leveraging the credit profiles of their corporate buyers, Fiducia provides suppliers access to low-cost financing while preserving the liquidity of corporate buyers, he said.
He added that Fiducia would strengthen cash flow for both corporate buyers and suppliers without materially impacting client on-balance sheet loan profiles.
“For financiers, Fiducia provides access to a greatly expanded pool of previously overlooked corporates and newly de-risked suppliers seeking financing,” he said.
The Fiducia boss said Supply Chain Finance (SCF) is emerging as an effective instrument to reduce financing gaps in developing markets.
The current SCF supply, he said, meets only about 24 per cent of the potential market.
Aig-Imoukhuede disclosed that smaller business owners and mid-sized corporates would now heave a sigh of relief with the launch of Fiducia.
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