Payaza, a fintech company, has secured and already redeemed a ₦14.9 billion Series 1 commercial paper (CP), becoming one of the first Nigerian startups to tap a funding instrument typically reserved for blue‑chip corporates.
This milestone—confirmed by Chief Technology Officer Philips Akinyele in a LinkedIn post—signals more than a single financing win. It underlines both the growing maturity of Nigeria’s fintech ecosystem and the expanding menu of local capital‑market options open to high‑growth technology companies.
What Exactly Is Commercial Paper?
Commercial paper is a short‑term debt security that investment‑grade companies issue—usually with tenors of 15 to 270 days—to raise quick, low‑cost working‑capital funding. In Nigeria, CPs are commonplace for banks, telcos, and FMCG giants, but they remain rare in the startup scene because issuers must pass rigorous credit‑rating and disclosure tests.
Bottom line: Think of commercial paper as an IOU that large, trustworthy companies can sell to institutional investors instead of taking a bank loan. The cheaper the rate, the stronger the market’s confidence in the issuer.
Payaza’s CP formed part of a deliberately crafted five‑year plan. From day one, the founding team invested in robust internal controls, budget discipline, and audited financial statements. Those steps paid off in December 2024 when the company received investment‑grade ratings (DataPro, Agusto & Co., and GCR) and won FMDQ Exchange approval for a ₦50 billion CP programme—an unprecedented size for a fintech.
The Series 1 tranche, worth ₦14.9 billion, carried a sub‑six‑month tenor. Payaza redeemed it ahead of schedule in June 2025 using operating cash flow—an outcome that earned the firm an upgraded ‘A’ rating and burnished its reputation with both investors and regulators.
Payaza focused on budget control and accountability, that was what set them apart from the onset. The company committed resources in setting up an accurate financial system and leadership systems from its early days.
CEO Seyi Ebenezer, founded the company with a goal to change financial services across Africa, has focused on the importance of creating a long lasting responsible organization rather than looking for fast growth at all cost. This approach has clearly set apart Payaza as a trusted partner for both investors and governing bodies.
With the commercial paper successfully obtained, Payaza has proven it can handle large financial tasks while still keeping processes running smoothly. This win gives the company even more expansion plans, including the building of more financial services.
Market experts show that this achievement comes at an important time for African fintech, as investors worldwide are becoming more selective about their investments.
As Payaza continues to build on this success, its rise from startup to commercial paper issuer highlights what is possible for Africa’s next generation of fintech founders . The company has shown that with proper preparation and financial discipline Nigerian startups can achieve milestones that benefit not just their own growth, but the system’s growth.
The ₦14.9 billion commercial paper transaction’s impact on Nigeria’s fintech landscape will most likely be felt for years to come.
Seyi Ebenezer says the fresh credibility will fuel Payaza’s expansion into cross‑border payments, merchant point‑of‑sale infrastructure, and US‑Africa remittance corridors—while keeping the company on its “responsible growth” path.