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 chief executive of HBM Nigeria Plc (formerly Lafarge Africa), Mr Lolu Alade-Akinyemi, said the cement producer is expected to add 4.5 million tonnes to its production capacity by January 2027.
HBM Nigeria Plc is positioning itself for stronger long-term competitiveness, market leadership and job creation as it accelerates expansion projects.
The transition to HBM Nigeria marks a new phase of growth, driven by operational excellence, sustainability, innovation, and infrastructure development, while maintaining its long-standing commitment to Nigeria’s construction sector.
Mr Alade-Akinyemi, speaking recently in Lagos, said the ongoing expansion of the company’s Ashaka and Sagamu plants would significantly boost local production, create employment opportunities, and support businesses across its value chain.
“We recently announced the expansion of the Sagamu plant in Ogun State and the Ashaka plant in Gombe State. Hopefully, in January 2027, we will commission both plants, adding 4.5 million tonnes to our capacity. Traditionally, building a new plant takes about three years, but this is one of the benefits of belonging to the Huaxin Group,” he said.
According to him, the projects will generate employment, create opportunities for young people and women, strengthen local suppliers and contractors, and contribute further to Nigeria’s economic growth.
“There are many vacancies we are trying to fill in Sagamu and Ashaka. Beyond direct employment, we are creating opportunities for small businesses, developing suppliers and supporting local contractors. This is an exciting period because it will deliver significant benefits to Nigeria,” he said.
Mr Alade-Akinyemi noted that while the company’s corporate identity had changed following its acquisition by Huaxin Building Materials Group, its core values and commitment to customers, host communities, employees and shareholders remain unchanged.
He said HBM Nigeria traces its roots to 1959 as West African Portland Cement Company (WAPCO), with its first cement plant commencing operations in Ewekoro, Ogun State, in 1961.
Since then, he said, the company has grown into one of Nigeria’s leading building solutions providers with integrated plants in Ewekoro, Sagamu, Ashaka and Mfamosing.
He added that the company, which became publicly listed in 1979, has continued to expand through acquisitions and transformation while maintaining high product quality, innovation and responsible operations.
Highlighting the strengths of its parent company, Alade-Akinyemi described Huaxin Building Materials as a globally recognised building materials manufacturer founded in 1907 and headquartered in Wuhan, China, with operations across 16 regions in China and 14 countries worldwide.
He said Huaxin’s engineering expertise and focus on research and development would strengthen HBM Nigeria’s operations and help close engineering skills gaps in the country.
“As HBM Nigeria, we are strategically positioned for long-term competitiveness and stronger market leadership while reinforcing our commitment to supporting Nigeria’s infrastructure development and economic progress after more than six decades of industry leadership,” he said.
He also said sustainability would remain central to the company’s operations, noting that it had introduced lower-carbon products and continued to invest in environmentally friendly production processes.
By Adedapo Adesanya
The Federation Account Allocation Committee (FAAC) distributed about N2.550 trillion from the revenue generated by the nation in June 2026 to the three tiers of government after its July meeting in Abuja.
A statement signed by the Director of Press in the Office of the Accountant General of the Federation, Mr Bawa Mokwa, “The N2.550 trillion total distributable revenue comprised N1.809 trillion in distributable statutory revenue and N740.724 billion in distributable Value Added Tax (VAT) revenue.”
It was gathered that a total gross revenue of N4.500 trillion was available in June 2026, with deductions for the cost of collection amounting to N160.744 billion, and transfers and refunds at N1.789 trillion.
According to a communiqué after the gathering, gross statutory revenue of N3.700 trillion was received in June 2026, N1.049 trillion higher than the N2.651 trillion received in the preceding month, while gross revenue of N799.746 billion was generated from VAT, N56.058 billion higher than the N743.688 billion recorded in May 2026.
It was stated that from the N2.550 trillion total distributable revenue, the federal government received N923.438 billion, the state governments got N838.208 billion, while the local government councils were given N591.390 billion, with N197.610 billion allocated to the benefiting states as 13 per cent of mineral derivation revenue.
From the N1.809 trillion distributable statutory revenue, the federal government went away with N849.366 billion, states shared N430.810 billion, local councils took N332.136 billion, while the benefiting states got N197.610 billion as derivation revenue.
From the N740.724 billion distributable VAT earnings, the central government got N74.072 billion, the states received N407.398 billion, and the local government councils were allocated N259.253 billion.
The communiqué further stated that in June 2026, collections from Companies Income Tax (CIT), Capital Gains Tax (CGT), Stamp Duties (SDT), Petroleum Royalties, Gas Flare Penalties, Rent, Mineral Oil Royalties (MOR), Value Added Tax (VAT), Import Duty, and Common External Tariff (CET) Levies increased significantly, while Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Mineral Royalties, and Fees declined considerably. Excise Duty recorded only a marginal increase.
By Adedapo Adesanya
The Nigeria Revenue Service (NRS) says the rollout of electronic invoicing (e-invoicing) will strengthen tax compliance, curb revenue leakages and improve transparency in tax administration as it moves to fully digitise the country’s tax system.
The Project Lead for the NRS e-Invoicing Project, Mr Mohammed Bawa, stated this at the DigiTax E-Invoicing Compliance Breakfast Session held in Lagos on Wednesday.
The event, organised by DigiTax, an NRS-accredited e-invoicing platform, formed part of efforts to support the agency’s ongoing education and sensitisation campaign on the e-invoicing mandate.
Mr Bawa said the initiative aligns with global trends in tax digitisation and is expected to help improve Nigeria’s tax-to-GDP ratio, which remains one of the lowest in Africa.
According to him, the system will provide the NRS with greater visibility into transactions across sectors, formalise activities within the informal economy and standardise invoice formats nationwide using globally recognised invoice schemas.
He added that e-invoicing would improve operational efficiency for both businesses and tax authorities while supporting the NRS’ transition from manual and electronic tax administration processes to a fully automated system-to-system interaction model.
Mr Bawa noted that the legal framework for implementation is backed by the Nigeria Tax Administration Act, which prescribes penalties for non-compliance.
He disclosed that the NRS has completed onboarding large taxpayers and is preparing to enforce compliance with defaulting entities.
According to him, medium taxpayers are expected to begin compliance in the third quarter of 2026, while onboarding of emerging taxpayers will commence in 2027, with full adoption targeted for all taxpayers by the end of 2028.
Mr Bawa urged taxpayers yet to be onboarded onto the platform to begin the process and work with accredited service providers to ensure compliance.
On his part, Country Director of DigiTax Nigeria, Mr Olumide Akinsola, urged businesses to look beyond their internal systems and assess the compliance status of suppliers and counterparties.
He warned that businesses whose suppliers fail to transmit invoices through the MBS platform risk losing eligibility to claim Value Added Tax (VAT) input credits on such transactions, describing the resulting supply chain exposure as a significant commercial risk that many organisations have yet to quantify.
Mr Akinsola also announced the launch of DigiTax’s white paper, The State of E-Invoicing Readiness in Nigeria, which examines compliance adoption trends and the readiness gap across different taxpayer segments.
He added that DigiTax operates in Nigeria, Kenya, Zambia and the United Arab Emirates (UAE), noting that experience from those markets shows businesses that integrate early are better positioned to avoid disruptions when enforcement begins.
