Nigerian fintech Payaza has received approval from Nigeria’s Securities and Exchange Commission (SEC) to raise a further ₦20 billion under its ₦50 billion commercial paper programme. The approval follows a similar nod from FMDQ Exchange received in December 2024.
“This SEC approval is incredibly significant for us at Payaza. It’s a profound vote of confidence from the market in our business model, our financial health, and our strategic vision for the African payments landscape,” Seyi Ebenezer said in a statement to Techpoint Africa.
The funds will be raised in two tranches as Series 3 and 4 of its commercial paper programme, allowing it to access capital as needed, Ebenezer shared.
“This approach of issuing in multiple tranches is a core benefit of our overall ₦50 billion programme. It allows us to strategically access capital as needed, optimising for market conditions and our specific funding requirements, rather than attempting one massive raise. This flexible structure has proven successful with our previous Series 1 and 2 issuances.”
While the approval has just been issued, the startup says it has seen significant investor interest and is confident of raising the funds it needs.
In June, Payaza repaid ₦14.9 billion in a Series 1 commercial paper issuance, suggesting that startups in Nigeria can raise capital beyond the usual VC channels. The milestone, though, was a few years in the making, with Ebenezer sharing that the startup had undergone the process to build trust in the brand.
Payaza, founded in 2020, has positioned itself as a pan-African payment infrastructure provider, enabling seamless transactions for individuals and businesses across the continent. With services spanning collections, disbursements, and white-label solutions, it has built a reputation for flexibility and reliability in cross-border payments.
As investor appetite continues to grow for non-equity funding structures, commercial paper programmes like Payaza’s are becoming increasingly attractive to startups looking to diversify their capital stack. Payaza’s successful repayments and growing market confidence have set it apart as a promising model for fintechs seeking scale without immediate equity dilution.
The fintech says it plans to deploy the fresh capital toward expanding its infrastructure, scaling product offerings, and deepening its reach across Africa.
