By Aduragbemi Omiyale

A collateralized credit facility worth N2.25 billion designed to enable the provision of credit services to the informal sector in Nigeria has been secured by OnePipe.

The debt security-backed loan was provided by a pan-African alternative investments firm, TLG Capital, for the firm to scale up its operations and provide inventory finance to small shops in Nigeria.

According to a statement, the deal was completed by the TLG Africa Growth Impact Fund (AGIF), and it represents TLG Capital’s 34th investment.

OnePipe is a fast-growing financial infrastructure company that enables merchants to access goods on credit from larger distributors who work with OnePipe.

The company has built an extensive network of field officers and partners, including banks and payment service providers. It has also secured a strong roster of equity investors, including Atlantica Ventures, P1 Ventures, Norrsken Foundation, Techstars, Tribe Capital, V&R Associates, Canaan Partners, DFS Labs, Ingressive Capital, Acquity, Raba, Saison Capital, The Fund, and Two Culture Cap.

The investment by TLG Capital will allow OnePipe to expand its operations with a vision of becoming a leading provider of financial services to the informal sector in Nigeria.

According to the International Labour Organization, the informal sector accounts for over 85 per cent of employment in Africa.

Providing financial access to this sector is crucial for economic development and poverty reduction. OnePipe’s model is well-positioned to address this need, and TLG Capital’s investment will help to support this effort.

The CEO of OnePipe, Ope Adeoye, said, “TLG’s extensive experience structuring debt in Nigeria and their deep network across Africa, particularly in venture, made them the partner of choice as we look to scale. TLG is our first debt partner and has been a powerful resource in planning our growth and balance sheet strategy.

“Through this partnership, we’re looking to build the infrastructure to provide credit and payment services to the two-thirds of Nigerian business owners who don’t have access to effective and practical banking services.”

An investment professional at TLG, Isaac Marshall, while commenting on the transaction, said, “Nigeria’s $220 billion cash-based informal sector comprises 38 million enterprises that are the most neglected segment of Nigerian businesses, avoided by both the fintechs and traditional financiers.

“With a clever product to help these businesses to obtain both credit and better purchasing terms on their goods, OnePipe has pioneered a model that can provide sustainable income growth to tens of millions of micro-enterprises.”

TLG Capital’s investment in OnePipe aligns with several Sustainable Development Goals, including SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 9 (Industry, Innovation and Infrastructure).

By providing credit to informal micro-businesses, OnePipe is helping to create sustainable income growth and promote economic development.

By Aduragbemi Omiyale

The use of merchant point-of-sale (POS) terminals by supermarkets, stores and other small business owners for the deposits and withdrawals of funds has been prohibited by the Central Bank of Nigeria (CBN).

The apex bank, in an Exposure Draft of the Regulatory Framework for Agent Banking in Nigeria, said owners of merchant POS machines are not permitted to carry out cash-in, and cash-out transactions as such functions are for another category of agent banking operators.

In the draft, the bank, while listing a set of prohibited activities for agents, said, “Agents shall not use purchase option PoS Terminals for cash-in and cash-out transactions.”

It also said the agents permitted to accept cash deposits and withdrawals have a limit they must not go beyond.

The CBN emphasised that agents must not “accept deposit or allow withdrawal above an amount which shall be prescribed, from time to time, by the bank,” and must not “charge customers fees outside regulated fees regime.”

The central bank explained that it came up with these rules “in the exercise of the powers conferred on the bank by Section 2 (d) of the Central Bank of Nigeria Act, 2007 and Section 57 (2) of the Banks and Other Financial Institutions Act (BOFIA), Laws of the Federation of Nigeria, 2004.”

The guidelines cover the operations of agent banking and the licensing of super agents, provide minimum standards and requirements for the operation of agent banking in the country, as well as the roles and responsibilities of stakeholders involved in agent banking.

By Modupe Gbadeyanka

No fewer than 16,000 youths would be trained and supported in wealth creation through agriculture by Ecobank Nigeria Limited in collaboration with the International Institute of Tropical Agriculture (IITA).

The Head of Public Sector and Agribusiness at Ecobank, Ms Ayo Osolake, explained that the programme is targeted at young Nigerians between the ages of 18 and 40 years and would cover key areas of specialization, including poultry, aquaculture, horticulture, and value addition.

She stated the first phase would last four weeks and would be strictly online, while the second phase would be hybrid, entailing practical sessions and farm visits.

“As a Pan-African institution, it is important for us to continue to sow the seeds of growth in the communities where we operate, especially among young people who are the future of our nation and in real economy-impacting sectors like agriculture.

“This is at the heart of our partnership with IITA, where we are combining the full scale of our expertise to empower and equip young Nigerians with the prerequisite knowledge for success in agriculture.

“Our commitment to helping young people create wealth is unwavering, and we are keen on working with similar-minded stakeholders in other sectors to help nurture the dreams of our youths,” Ms Osolake said.

Speaking further, she said, “The program is designed with a view to expanding the frontiers of agricultural opportunities for Nigerians, especially in terms of research, development and wealth creation.

“Now is a great time for anyone considering a future in agriculture to be a part of this training. The structure and areas of specialization have been carefully chosen to boost the capabilities of all attendees.

“The training will also cover both theoretical and practical aspects of everything they need to learn.  It is a pleasure to work with a foremost institution like the IITA for this, seeing that we share similar values.”

“This training offers an opportunity to learn new technologies along the focus value chain, build business skills and competencies in agribusiness management, mentoring and coaching opportunities, linkages to finance, exposure to business plan development, and loan application. She stated that there would also be post-training support to improve start-up identity and market linkages.

“The training is open only to Ecobank account holders who are encouraged to register through this link:  https://forms.office.com/r/DNQmKRkw55.

“Interested persons who would live to take advantage of the training can easily become Ecobank account holders by downloading the Xpresspoint App and signing up or by visiting any Ecobank branch nearest to them,” she said.