June 2, 2023

Fiducia set to catalyse growth in Nigeria’s supply chain finance ecosystem


By Providence Ayanfeoluwa

Fiducia, a technology-leveraged supply chain financing platform, has rolled out the first-of-its-kind solution, with the mission to catalyse the growth of Nigeria’s supply chain financing market to N12 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. For financiers, Fiducia provides access to a greatly expanded pool of previously overlooked corporates and newly de-risked suppliers seeking financing.

Speaking at the formal launch of Fiducia, Chief Executive Officer of Fiducia, Imohimi Aig-Imoukhuede, said that the International Finance Corporation (IFC) currently estimates the value of Nigeria’s existing supply chain financing sector at around N3 trillion. If the country’s currently excluded SME supply chains could be brought into play, an additional N9 trillion could be unlocked for Nigeria’s economy.

“Supply Chain Finance (SCF) is emerging as an effective instrument to reduce financing gaps in developing markets. The current SCF supply meets only about 24percent of the potential market. 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. 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 said.

He 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,” he said.