Ola Oyetayo, co-founder and CEO of Verto, has said that fintechs reduction of cross-border payment barriers is critical to unlocking the scalability of African manufacturers.
He noted that many of whom remain constrained not by product quality but by the financial friction associated with international trade.
Speaking during an interview on the role of fintech in strengthening manufacturing and trade, Oyetayo noted that African manufacturers often rely heavily on the African-Asia trade corridor, particularly imports from China for raw materials and machinery.
However, inefficiencies in cross-border payments continue to limit their ability to operate competitively on a global scale.
He stated that easing payment bottlenecks would activate key growth drivers for the sector.
Manufacturers would be able to pay global suppliers for raw materials and equipment in real time, significantly improving procurement speed and operational efficiency which will lead to more cost-effective procurement essential for survival.
High transaction fees and unfavourable foreign exchange spreads act as a hidden tax on African-made goods and reducing these costs would allow locally produced goods to compete more effectively in global markets.
He stated that exchange rate volatility also affects production costs, as higher rates reduce consumer purchasing power and weaken manufacturers’ competitive pricing.
Faster and more reliable payment confirmation would strengthen trust with international distributors.
Oyetayo explained that if a manufacturer in Ogun State can receive payments in dollars or euros as seamlessly as a local transfer, it becomes easier for such businesses to integrate into global value chains.
He said addressing these challenges requires a shift away from the traditional correspondent banking model, which is often slow and opaque.
One key solution, he noted, is integrating manufacturing enterprise resource planning (ERP) systems directly with fintech payment rails to automate the order-to-pay cycle. This would reduce manual errors and delays in payment processing.
Oyetayo also emphasised the importance of multi-currency payment infrastructure that allows manufacturers to hold, receive, and make payments in multiple currencies such as the US dollar, euro, pound sterling and naira without constant conversion losses.
He said this capability would help businesses protect their margins from the volatility experienced in Nigeria’s foreign exchange market.
He further highlighted initiatives such as the Pan-African Payment and Settlement System (PAPSS), which enables intra-African trade in local currencies and reduces dependence on the US dollar, a major constraint often cited in the sector’s recent contraction.
According to Oyetayo, fintech companies like Verto serve as the ‘financial engine’ for trade, complementing government efforts focused on physical infrastructure development.
While initiatives such as Nigeria’s Industrial Policy 2025 aim to strengthen manufacturing capacity, he said fintech provides the digital infrastructure needed to move money efficiently across borders.
He noted that manufacturers are particularly vulnerable to currency fluctuations, and fintech solutions offer tools such as hedging and forward contracts that allow companies to lock in exchange rates and plan long-term despite macroeconomic volatility.
He also pointed out that many small and medium-sized manufacturers struggle to open traditional domiciliary accounts with banks.
Fintech platforms, however, can provide local collection accounts in major markets, enabling Nigerian manufacturers to receive payments from Europe, the United States and the UAE as if they were operating locally in those markets.
Beyond cost and accessibility, transaction speed is another major factor. By reducing the time money spends in transit, fintech improves manufacturers’ cash flow which is an important advantage at a time when foreign capital inflows into the sector have dropped by 32 percent.
Oyetayo called for stronger collaboration between regulators, financial institutions and the private sector to accelerate growth in the manufacturing ecosystem.
He said African central banks need greater alignment in areas such as KYC and compliance standards to allow money to move as quickly as goods under the African Continental Free Trade Area (AfCFTA).
He suggested that governments could introduce incentives such as fast-track approvals or tax benefits for manufacturers that use transparent digital cross-border payment channels, a move that would also encourage more foreign exchange to flow through formal financial systems.
Strengthening international payment infrastructure must also be matched by improvements in domestic payment systems, he added.
“If a manufacturer cannot efficiently pay local logistics providers or utilities, the entire supply chain breaks down,” he said.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
