Kelvin Obasuyi Addresses Payment Challenges for Nigerian Trade

Kelvin Efosa Obasuyi, founder and CEO of Vector Innovation and co-founder of 56 Capital, states that payment uncertainty is raising the cost of international trade for Nigerian businesses. He explains that financing pressures extend beyond loan access, as delays in moving money across borders can increase the capital needed for fulfilling orders and maintaining inventory.

Obasuyi highlights that a business may have sufficient funds but may not be able to deploy them when needed, leading to situations where importers pay for inventory but suppliers await cleared funds. This can pressure working capital, forcing businesses to borrow more, delay purchases, or decline orders.

His insights stem from his experience at 56 Capital, Duplo, and Vector, where he assessed financing needs and developed financial technology products. He argues that payment timing, delivery, sale, and collection are crucial in determining financing requirements, as delays can increase costs beyond just transfer fees or exchange rates.