Quick Summary:
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Payaza raised and fully repaid ₦14.9 billion through commercial papers in under six months.
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The move is rare among Nigerian startups, which typically avoid this funding path.
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CEO Seyi Ebenezer emphasized that debt fosters discipline and builds trust.
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Payaza’s early audits and internal structures prepared it for this financial milestone.
Nigeria’s financial market is experiencing a notable surge in commercial paper issuance. From industry giants like Access Bank to Dangote Cement, several companies have tapped into this short-term, unsecured debt instrument to meet urgent funding needs.
However, one group has largely stayed away—startups. That makes Payaza’s recent move not just unusual, but historic.
Payaza’s Impressive Feat: ₦14.9 Billion Raised and Repaid
In a bold financial maneuver, Payaza successfully raised ₦14.9 billion through its Series 1 commercial paper—and repaid the full amount in less than six months.
Founded as a bootstrapped fintech company, Payaza provides payment and collection tools for small and medium-sized enterprises in Nigeria. According to CEO Seyi Ebenezer, the use of commercial paper wasn’t just an experiment—it was part of a well-thought-out plan from the start.
Why Commercial Paper Over Equity?
While most startups lean toward equity financing or traditional debt, Payaza intentionally chose commercial paper to foster internal discipline and financial credibility.
“In tech, we talk about speed and innovation. But when handling people’s money, trust becomes everything,” Ebenezer told Techpoint Africa. He emphasized that issuing commercial paper helped build credibility with stakeholders and instill financial discipline across the organization.
Internal Discipline and Long-Term Planning
Preparing for such a financial undertaking wasn’t spontaneous. Payaza had been audited by Deloitte since inception—a rare step for a young startup. This forward-thinking approach allowed them to establish strong internal structures and identify areas for improvement early on.
Ebenezer, drawing from his banking experience, noted that debt fosters accountability in ways equity often doesn’t. “Equity can make you comfortable. Debt keeps you sharp,” he said.
Strategic Planning From Day One
Issuing commercial paper was part of Payaza’s five-year vision. By aligning their operations with stringent financial standards early in their journey, the company positioned itself for long-term success.
Their story proves that with the right structure and discipline, startups can explore sophisticated financial instruments—just like their larger, more established counterparts.