Payaza, a Nigerian fintech startup, has raised and repaid ₦14.9 billion through commercial papers in under six months.
The Lagos-based company, which offers payments and collections tools for businesses, completed the issuance as part of a long-term strategy to build financial credibility without giving up equity.
According to CEO Seyi Ebenezer, issuing commercial paper wasn’t just a funding decision — it was a long-term strategic plan.
“In technology today, we talk about speed, artificial intelligence, and innovation,” Ebenezer said in a recent interview. “But when it comes to the world of finance, where you handle people’s hard-earned money, then we talk about trust.”
What Is Commercial Paper and Why Did Payaza Use It?
Commercial paper is a short-term, unsecured debt instrument typically issued by companies with strong credit ratings to meet immediate financing needs.
In Nigeria, it’s a regulated product that requires companies to undergo independent credit rating assessments before issuance.
Ebenezer, who previously worked at KPMG, Access Bank, and Keystone Bank, said the decision was grounded in what he observed during his banking years.
“One of the things I’ve observed over time is that debt really fosters discipline. In my banking days, if you started a business with equity, there’s a tendency to become lazy, and there’s a tendency not to manage your costs well,” he noted.
According to him, companies with structure were able to stand the test of time despite their issues, while the companies without structure, which were solely dependent on the decisions of a few people, had a lot of issues.
Is Commercial Paper Necessary for Startups?
Issuing commercial paper isn’t easy. It requires independent audits, credit ratings, and legal clearances. This is why many startups shy away. But Ebenezer believes the discipline it demands is exactly why it should be explored.
“I would want more startups to do this,” he said. “It could create a lot of financial discipline. When you know you’re running on debt, you have to be very detailed and do what you’re meant to do properly.”
Why It Matters
Industry experts say Payaza’s ability to repay the debt within half a year signals growing confidence in local financial instruments and presents a case for alternative funding models within Africa’s fintech sector.
The move, according to analysts, stands out in Nigeria’s startup landscape, where most early-stage companies rely heavily on equity financing or venture capital.
More importantly, the move is said to be a potential turning point for the wider African startup ecosystem, long seen by traditional investors as too risky for credit-based instruments.
Market Overview
Nigeria remains Africa’s largest fintech hub, accounting for over one-third of all fintech on the continent, according to the World Bank. Recent figures from Statista also show that the digital payments market in Nigeria is projected to reach US$68.30 billion in 2025.
Payaza plays in the same sandbox as several notable fintechs offering payment infrastructure to small and medium-sized businesses, including Flutterwave, Paystack, Moniepoint, and Remita.
Talking Points
Payaza’s successful raise and full repayment of ₦14.9 billion through commercial papers in under six months is a powerful signal that Nigeria’s debt capital market is not off-limits to disciplined startups.
This move challenges the widely held belief that African startups must rely solely on equity or foreign venture capital to scale. Payaza has proven that startups can speak the language of institutional investors.
At Techparley, we see this as a bold and necessary recalibration. It opens up a new path for sustainable, non-dilutive financing that rewards operational discipline, something many startups overlook in the pursuit of fast growth.
The fact that Payaza achieved this without a single equity round, and with consistent Deloitte audits from inception points to the power of building with long-term transparency in mind.
However, this route isn’t for every startup. It requires maturity, readiness for scrutiny, and strong internal controls. Regulatory navigation and credit rating processes are demanding, and only startups that embrace structure early will qualify.
