Economy
Why Nigeria’s Payment Culture Crisis Has Worsened—OnePipe CEO
Across Nigeria, thousands of hardworking entrepreneurs—from small school owners to gig economy riders—face a recurring challenge that’s as old as the hustle itself: chasing payments. Despite delivering services on time and at scale, they are often left waiting days, sometimes weeks, to get paid. This delay isn’t just frustrating—it’s costly, demoralizing, and systemically harmful.
In a business environment already strained by inflation, fuel price volatility, and limited access to credit, late payments can break even the most resilient businesses. It affects not just cash flow, but trust, planning, and the ability to grow. The stakes are especially high for cooperatives and service-based SMEs, many of whom rely on informal, manual systems to manage their finances.
Ope Adeoye, CEO of Nigerian fintech firm OnePipe, believes the solution lies in structure. Through their flagship product PaywithAccount, OnePipe is pioneering a payment system that gives Nigerian businesses more control, transparency, and dignity. In this conversation, Ope talks about the roots of Nigeria’s payment culture crisis, its emotional and economic toll, and how businesses can take back control.
Let’s start with the everyday experience. Why is late payment such a big issue in Nigeria?
It’s partly cultural and partly systemic. In Nigeria, business often happens through relationships—verbal commitments, trust, informal records. That’s a beautiful thing in some ways. But when it comes to payments, it creates a lot of gray areas. People think they’re doing you a favor by paying. There’s no urgency. And the problem is, you’ve already done the work—you’ve delivered the service, paid your staff, bought fuel, and now you’re waiting endlessly for the money.
This creates a vicious cycle. Small businesses start avoiding riskier customers or stop offering credit entirely. That affects their customer base and revenue. It becomes harder to grow. It also makes the business ecosystem more hostile—less trust, more micromanagement, more stress.
And that waiting comes with real cost, right?
Absolutely, every hour spent chasing a payment is an hour lost from doing productive work. You’re calling, texting, sending WhatsApp reminders, following up again. It’s exhausting. It affects your cash flow, your energy, and even your relationships.
We’ve seen school administrators chasing parents, cooperative treasurers begging members, and artisans refusing new jobs because they haven’t been paid for the last one. That’s lost economic value right there. And it’s not just money—it’s morale. When you can’t plan your finances, it affects your confidence in taking on new opportunities.
Is this a new problem or has it worsened in recent years?
It’s not new, but the impact has gotten worse because of economic pressures. Inflation, rising fuel costs, and business uncertainty mean that small delays can have cascading effects. If someone doesn’t pay you on time, you might not be able to pay your own supplier or staff. It becomes a ripple effect.
Also, we’re in a more digital world now. Expectations are higher. People want things faster, but the backend systems for collecting payment haven’t kept up. That disconnect creates real operational tension for many small businesses.
What’s driving the shift toward structured payment tools like PaywithAccount?
We’re seeing a real hunger for order. People are tired of chaos. PaywithAccount is built to bring structure to these informal interactions. It lets businesses or cooperatives set up a payment mandate—essentially a permission from the customer to deduct funds directly from their account at a specific time or frequency.
It works like a standing order but is simpler and designed for our local context. You don’t need complex bank setups or expensive tech. A cooperative or small business can set it up with basic onboarding and immediately start seeing the benefits in how they operate and relate with customers.
What’s the adoption been like?
It’s been encouraging. We’ve seen cooperatives that used to spend days every month chasing dues now collecting 90% of their contributions on schedule. We’ve seen service providers—like caterers—who now set up mandates with their clients for milestone payments. They report better cash flow, less tension, and more respect from customers.
More importantly, they regain time—time to focus on the actual work of building their business. We’ve also seen that clients take them more seriously. There’s a perception shift when you introduce structure. It builds credibility.
But some people might see mandates as risky or intrusive. How do you address that?
That’s a fair concern. Trust is central. We make sure every mandate is user-authorized, clear, and revocable. The idea isn’t to trap anyone—it’s to protect both sides.
In fact, many clients actually prefer it. It takes away the need for awkward reminders or renegotiations. Everyone knows what’s coming. It reduces friction. And when there’s friction, people hesitate. So having a clear system builds peace of mind.
Why do you think this is resonating now?
It is because people are tired. The hustle mentality is strong in Nigeria, but it comes at a cost. If you’re constantly working, chasing clients, borrowing short-term cash, you never get ahead.
Nigerians want to grow. They want to operate with dignity. Tools like PaywithAccount help with that—not by changing how we do business but by giving it more structure. It enables people to take themselves more seriously—and when that happens, others take them seriously too.
You mentioned cooperatives earlier. Why is this tool especially useful in that space?
Cooperatives are lifelines in this country. They’re how people save, access loans, or fund children’s school fees. But many of them still operate manually. We’ve worked with cooperatives where the treasurer keeps handwritten books and uses their personal account. That’s not scalable, and it’s open to error or fraud.
With PaywithAccount, they can collect dues digitally, get notified in real-time, and operate more like a micro-financial institution. It empowers them to formalize without losing their community feel. And that’s important—because the human connection is part of why cooperatives work.
What’s your vision for how this changes Nigerian business culture?
I want us to stop normalizing late payment. I want it to be seen as a business risk—because that’s what it is. If you can’t pay on time, you’re not being professional.
My hope is that more people start to use tools that introduce structure, whether it’s PaywithAccount or something else. The more we normalize timely payment, the more we enable SMEs to grow, plan, and hire. That’s how you build an economy from the ground up.
We often say we’re a nation of entrepreneurs. Let’s start behaving like one—serious, structured, and scalable.
Final thought—what would you say to a small business owner still unsure about all this?
I’d say: try it with just one client. Set up a mandate, see how it feels. Most times, the client even appreciates the structure. It shows you’re serious. You deserve to be paid on time. It’s not too much to ask.
Also, don’t think you have to be a big business to operate professionally. Start small, but build systems. That’s what sustains you when things get tough.
By Adedapo Adesanya
The United Kingdom via the British High Commission in Abuja has launched two flagship economic reform programmes – the Nigeria Economic Stability & Transformation (NEST) programme and the Nigeria Public Finance Facility (NPFF) -as part of efforts to support Nigeria’s economic reform and growth agenda.
Backed by a £12.4 million UK investment, NEST and NPFF sit at the centre of the UK-Nigeria mutual growth partnership and support Nigeria’s efforts to strengthen macroeconomic stability, improve fiscal resilience, and create a more competitive environment for investment and private-sector growth.
Speaking at the launch, Cynthia Rowe, Head of Development Cooperation at the British High Commission in Abuja, said, “These two programmes sit at the heart of our economic development cooperation with Nigeria. They reflect a shared commitment to strengthening the fundamentals that matter most for our stability, confidence, and long-term growth.”
The launch followed the inaugural meeting of the Joint UK-Nigeria Steering Committee, which endorsed the approach of both programmes and confirmed strong alignment between the UK and Nigeria on priority areas for delivery.
Representing the Government of Nigeria, Special Adviser to the President of Nigeria on Finance and the Economy, Mrs Sanyade Okoli, welcomed the collaboration, touting it as crucial to current, critical reforms.
“We welcome the United Kingdom’s support through these new programmes as a strong demonstration of our shared commitment to Nigeria’s economic stability and long-term prosperity. At a time when we are implementing critical reforms to strengthen fiscal resilience, improve macroeconomic stability, and unlock inclusive growth, this partnership will provide valuable technical support. Together, we are laying the foundation for a more resilient economy that delivers sustainable development and improved livelihoods for all Nigerians.”
On his part, Mr Jonny Baxter, British Deputy High Commissioner in Lagos, highlighted the significance of the programmes within the wider UK-Nigeria mutual growth partnership.
“NEST and NPFF are central to our shared approach to strengthening the foundations that underpin long-term economic prosperity. They sit firmly within the UK-Nigeria mutual growth partnership.”
By Aduragbemi Omiyale
A strategic partnership aimed at accelerating the growth, digital capacity, and sustainability of Nigeria’s 40 million Micro, Small and Medium Enterprises (MSMEs) has been signed by MTN Nigeria and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
The collaboration will feature joint initiatives focused on digital inclusion, financial access, capacity building, and providing verified information for MSMEs.
With millions of small businesses depending on accurate guidance and easy-to-access support, MTN and SMEDAN say their shared platform will address gaps in communication, misinformation, and access to opportunities.
At the formal signing of the Memorandum of Understanding (MoU) on Thursday, November 27, 2025, in Lagos, the stage was set for the immediate roll-out of tools, content, and resources that will support MSMEs nationwide.
The chief operating officer of MTN Nigeria, Mr Ayham Moussa, reiterated the company’s commitment to supporting Nigeria’s economic development, stating that MSMEs are the lifeline of Nigeria’s economy.
“SMEs are the backbone of the economy and the backbone of employment in Nigeria. We are delighted to power SMEDAN’s platform and provide tools that help MSMEs reach customers, obtain funding, and access wider markets. This collaboration serves both our business and social development objectives,” he stated.
Also, the Chief Enterprise Business Officer of MTN Nigeria, Ms Lynda Saint-Nwafor, described the MoU as a tool to “meet SMEs at the point of their needs,” noting that nano, micro, small, and medium businesses each require different resources to scale.
“Some SMEs need guidance, some need resources; others need opportunities or workforce support. This platform allows them to access whatever they need. We are committed to identifying opportunities across financial inclusion, digital inclusion, and capacity building that help SMEs to scale,” she noted.
Also commenting, the Director General of SMEDAN, Mr Charles Odii, emphasised the significance of the collaboration, noting that the agency cannot meet its mandate without leveraging technology and private-sector expertise.
“We have approximately 40 million MSMEs in Nigeria, and only about 400 SMEDAN staff. We cannot fulfil our mandate without technology, data, and strong partners.
“MTN already has the infrastructure and tools to support MSMEs from payments to identity, hosting, learning, and more. With this partnership, we are confident we can achieve in a short time what would have taken years,” he disclosed.
Mr Odii highlighted that the SMEDAN-MTN collaboration would support businesses across their growth needs, guided by their four-point GROW model – Guidance, Resources, Opportunities, and Workforce Development.
He added that SMEDAN has already created over 100,000 jobs within its two-year administration and expects the partnership to significantly boost job creation, business expansion, and nationwide enterprise modernisation.
By Adedapo Adesanya
The Nigerian Exchange (NGX) Limited is seeking review of the controversial Capital Gains Tax increase, fearing it will chase away foreign investors from the country’s capital market.
Nigeria’s new tax regime, which takes effect from January 1, 2026, represents one of the most significant changes to Nigeria’s tax system in recent years.
Under the new rules, the flat 10 per cent Capital Gains Tax rate has been replaced by progressive income tax rates ranging from zero to 30 per cent, depending on an investor’s overall income or profit level while large corporate investors will see the top rate reduced to 25 per cent as part of a wider corporate tax reform.
The chief executive of NGX, Mr Jude Chiemeka, said in a Bloomberg interview in Kigali, Rwanda that there should be a “removal of the capital gains tax completely, or perhaps deferring it for five years.”
According to him, Nigeria, having a higher Capital Gains Tax, will make investors redirect asset allocation to frontier markets and “countries that have less tax.”
“From a capital flow perspective, we should be concerned because all these international portfolio managers that invest across frontier markets will certainly go to where the cost of investing is not so burdensome,” the CEO said, as per Bloomberg. “That is really the angle one will look at it from.”
Meanwhile, the policy has been defended by the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, who noted that the new tax will make investing in the capital market more attractive by reducing risks, promoting fairness, and simplifying compliance.
He noted that the framework allows investors to deduct legitimate costs such as brokerage fees, regulatory charges, realised capital losses, margin interest, and foreign exchange losses directly tied to investments, thereby ensuring that they are not taxed when operating at a loss.
Mr Oyedele also said the reforms introduced a more inclusive approach to taxation by exempting several categories of investors and transactions.
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