Nigeria’s MSMEs Get Boost as CycleFlow, C2FO Roll Out $30 Billion Finance Platform
- CycleFlow has launched a supply chain finance platform to connect MSMEs with buyers and financial institutions for faster access to working capital
- The platform allows small businesses to convert approved invoices into immediate cash without collateral, addressing a major financing gap
- Once scaled, it could unlock up to $25–$30 billion annually in financing, support hundreds of thousands of jobs, and drive broader economic growth
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
CycleFlow, backed by C2FO and supported by the International Finance Corporation, has officially commenced operations in Nigeria. The launch represents the first step in a broader strategy to roll out a nationwide working capital platform across Africa and other emerging markets.
With backing from several banking partners, the initiative has already attracted both multinational corporations and local firms.
Source: UGC
The platform is designed to link financial institutions with major buyers and their MSME suppliers. Through this system, banks and participating buyers can provide short-term financing by purchasing approved invoices at discounted rates.
This allows small businesses to quickly convert outstanding payments into cash, relying on the stronger credit standing of large buyers rather than their own collateral. As a result, smaller suppliers gain fairer access to funding, helping them compete more effectively within the marketplace.
According to Segun Ogunsanya, Chairman of CycleFlow, the initiative represents a major shift in Nigeria’s financial landscape.
Ogunsanya said:
“By enabling immediate access to funds locked in accounts receivable, we are not just financing businesses; we are powering economic growth across the entire ecosystem. This innovative technology addresses the biggest financial challenges in Africa and ensures that capital reaches the micro, small and medium enterprises (MSMEs) that drive our economy.”
Driving growth, jobs, and financial inclusion
Once fully operational, the platform could generate between $25 billion and $30 billion annually in financing for Nigerian businesses, making it one of the largest supply chain finance programs for small enterprises in Africa.
By bringing together multiple banks, buyers, and suppliers on a single open platform, it removes traditional bottlenecks and enables financing at scale.
MSMEs dominate Nigeria’s business environment, accounting for the vast majority of enterprises and a significant share of employment.
Despite their importance, many struggle to secure affordable credit due to strict lending requirements such as collateral and lengthy approval processes. This financing gap has long limited their ability to expand, hire, and compete.
The platform addresses this challenge by shifting the risk assessment from the small business to the larger buyer. In practice, this means that once an invoice is approved, a supplier can access immediate funds without waiting for long payment cycles.
For many businesses operating on 60- to 120-day terms, this improved cash flow can be transformative.
Mohamed Gouled of IFC highlighted that the initiative demonstrates how technology and development finance can work together to unlock capital for underserved businesses.
Gouled said:
"By connecting suppliers, buyers, and financial institutions on a single, open infrastructure, we are helping unlock financing that could support hundreds of thousands of jobs in Nigeria alone and we see this as a replicable model for the rest of the continent."
Read also
Another company secures license to operate banking service, list of 5 new services expected
Source: Getty Images
Research suggests the potential impact is substantial. Increased financing for MSMEs could lead to hundreds of thousands of new jobs, with ripple effects across the wider economy. As employment rises, consumer spending is likely to grow, further boosting economic output and potentially increasing Nigeria’s GDP.
Alexander Kemper, founder and CEO of C2FO, described the launch as a key milestone in expanding access to capital globally.
Kemper said:
"This launch kicks off our broader strategy to bring affordable liquidity solutions across Africa and other emerging markets worldwide, utilizing the groundbreaking platform and technology we have spent over 15 years perfecting across 180 countries.”
He emphasised that Nigeria offers an opportunity to demonstrate how financial technology can reshape economies by improving cash flow for businesses and creating more sustainable growth.
Source: Legit.ng
