Last week, our team spoke with over 100 business owners at the Lagos and Osun Tech Fests. What we heard wasn’t surprising, but it was sobering. The payment challenges facing Nigerian SMEs aren’t just inconveniences; they’re actively limiting growth and damaging supplier relationships
Here’s what they told us.
The Biggest Payment Pain Points
Bank Delays Are Killing Supplier Relationships
“My supplier in China thinks I’m unreliable because my payments take up to 7 days.”
We heard this story far too many times. A textile importer in Lagos had lost two key suppliers in the past year; not because she couldn’t pay, but because payments consistently arrived late. In global trade, your payment speed signals your business health. When transfers routinely take 5-10 days, international partners start questioning your stability.
What business owners told us:
“I’ve started telling suppliers to expect payment in 10 days, even though I send it immediately”
“I lose negotiating power because they know I can’t pay quickly”
“I’ve had shipments held because payment didn’t clear in time”
Hidden Fees Are Eating Into Margins
A fashion retailer in Osun showed us her bank statement. She’d sent $5,000 to a supplier in India. The advertised fee was ₦115,000. But after intermediary bank charges, correspondent fees, and FX margin markup, she’d paid an additional ₦180,000 she hadn’t budgeted for.
For businesses operating on 10-15% margins, that’s devastating. Business owners are forced to build 5-7% buffers into their budgets just to account for surprise fees.
There’s No One to Call When Things Go Wrong
An e-commerce founder told us about a ₦12 million payment stuck in the banking system for three weeks_. “I called my bank every day. They kept saying ‘we’re working on it.’ My supplier was threatening legal action. I had no visibility, no timeline, no real answers.”_
For SMEs, this isn’t just frustrating. It’s existential. A stuck payment can mean missed inventory windows, broken contracts, or lost business opportunities.
The FX Rate Gap Is Frustrating
“I can see the rate is ₦1,540 to the dollar online. My bank gives me ₦1,490. Where did 50 naira go?”
Business owners understand that banks need to make money on FX margins. What frustrates them is the lack of transparency and the size of the gap. For high-volume businesses, even a small margin difference adds up to millions in lost value over a year.
What This Tells Us
These conversations revealed three critical truths:
Speed is now a competitive advantage. The business that can pay suppliers in 48 hours has a genuine edge over the one that takes 7 days. Speed enables better supplier relationships, stronger negotiating positions, and faster inventory turns.
Trust is the real currency. Business owners aren’t looking for the cheapest option. They’re looking for reliability. They want to know their payment will arrive on time, the rate will be fair, and if something goes wrong, there’s someone who can help.
Infrastructure is holding back ambition. We met dozens of business owners who had turned down growth opportunities because their payment infrastructure couldn’t keep up. They’re not thinking too small—their banking partners are.
What Nigerian SMEs Actually Need
Based on what we heard, cross-border payments should offer:
Transparent pricing upfront - No surprise fees
Consistent speed - Business owners can plan around speed, not uncertainty
Human support - A real person to call when things go wrong
Clear compliance guidance - Tell them what documents they need before they start
Fair FX rates - Reasonable, transparent margins
What’s Next
The cheapest provider won’t win the future of cross-border payments in Africa. It’ll be won by the most reliable one.
Nigerian businesses are ready to scale across borders and compete globally. What they need is a payment infrastructure that scales with them, not friction that holds them back.
At Oneremit, we’re building for that future. Fast, transparent cross-border payments with real human support. No hidden fees. No week-long delays. No wondering if your payment went through.
Because when payments work how they should, business owners can focus on what they actually built their businesses to do: GROW.
Ready to make your cross-border payments faster and more reliable? Send us a message.
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