Nigeria's Jumoke Oduwole Proposes Cash for Unpaid Invoices

Nigeria is initiating a financing mechanism that enables small businesses to raise cash against verified unpaid invoices, as announced by Industry, Trade and Investment Minister Jumoke Oduwole during the inaugural meeting of the National Digital Invoicing and Financial Optimisation Strategy steering committee. This proposal aims to assist small and medium enterprises (SMEs) in funding operations while awaiting customer payments.

Oduwole emphasized the need to connect digital invoicing with affordable working capital for various sectors, including exporters, manufacturers, and agro-processors. The proposed system would allow businesses to secure funding based on receivables rather than waiting for payment dates.

Oduwole outlined four essential requirements for this system: establishing digital infrastructure for invoice authenticity, clarifying legal ownership and enforcement of payment claims, securing financing and risk support from banks and fintechs, and ensuring genuine transactions from businesses and their buyers. The proposal also includes eligible public-sector counterparties and suppliers in fast-moving consumer goods chains.