Stanbic IBTC Bank, a subsidiary of Stanbic IBTC Holdings, has reinforced
its position as a leader in trade by becoming the first bank in Nigeria
to partner with CycleFlow, a supply chain finance platform powered by
C2FO and backed by the International Finance Corporation (IFC).
The platform will connect the Bank with participating corporate buyers
and their MSME suppliers, enabling the Bank to offer affordable
short-term financing to suppliers by purchasing and discounting invoices
accepted for payment by the corporate buyers. These transactions will
allow MSMEs to improve working capital by converting sales receivables
immediately to cash by leveraging the stronger credit profile of the
corporate buyers rather than relying on the creditworthiness of the
MSMEs.
This initiative is timely as businesses across Nigeria grapple with high
interest rates, unequal or delayed access to financing, increased
competition and prolonged payment cycles. It will also help level the
playing field among larger and smaller suppliers enabling them to reach
their full potential. The corporate buyers benefit through improved
supply chain resilience, improved supplier relationships, and
efficiencies gained by automating payment processes.
Eric Fajemisin, Executive Director of Corporate and Transaction Banking,
Stanbic IBTC Bank, highlighted the transformative potential of this
partnership: “We recognise that robust supply chains are the backbone
of a thriving economy. Our collaboration with IFC and C2FO is about
empowering suppliers, particularly SMEs, by providing them with the
flexibility to manage their cash flow effectively. This means they can
choose to receive payments within days instead of waiting months, all
without incurring additional debt. This represents a significant shift
towards trade enablement and underscores our commitment to fostering an
inclusive economy that benefits all stakeholders”.
Jesuseun Fatoyinbo, Head Transaction Banking, Stanbic IBTC Bank, stated,
“Our commitment to enhancing the business environment in Nigeria is
unwavering. With the adoption of CycleFlow, we are not just providing a
service; we are creating opportunities for growth and innovation. This
initiative is designed to level the playing field for SMEs, enabling
them to thrive in a challenging economic landscape. By facilitating
early payments, we are helping businesses to become more resilient and
agile, fostering a culture of collaboration that ultimately benefits the
entire economy.”
In line with Nigeria’s economic objectives, Stanbic IBTC Bank’s
initiative promotes local content and aims to bolster growth in the
manufacturing sector, positioning Nigeria for greater engagement in the
African Continental Free Trade Area (AfCFTA). The bank’s commitment to
harnessing innovative financial solutions reflects its broader strategy
to address the challenges faced by local businesses and support national
economic development.
As the nation embarks on a journey towards economic recovery and growth,
initiatives such as this are poised to revolutionise the way suppliers
and corporate buyers operate, creating an enabling environment for
greater financial stability and success in Nigeria’s increasingly
competitive market.
