Nigerian fintech Payaza has received approval from Nigeria’s Securities and Exchange Commission (SEC) to raise ₦20 billion as part of its broader ₦50 billion commercial paper programme. This marks a significant milestone in the startup’s mission to scale its infrastructure and redefine how African startups approach non-dilutive funding.
This new approval follows a similar green light from the FMDQ Exchange in December 2024. Payaza plans to raise the ₦20 billion in two tranches, labeled Series 3 and Series 4, allowing it to access capital based on evolving market needs.
“This SEC approval is incredibly significant for us at Payaza. It’s a profound vote of confidence from the market in our business model, financial health, and strategic vision for the African payments landscape,” said CEO Seyi Ebenezer in a statement to Techpoint Africa.
In June 2025, Payaza successfully repaid ₦14.9 billion from its Series 1 commercial paper issuance. The repayment not only reinforces investor trust but also shows that Nigerian startups can raise and repay capital outside of the typical venture capital channels.
Ebenezer noted that this progress didn’t happen overnight. The startup had spent years building a credible track record and strong brand reputation—critical ingredients for winning over fixed-income investors.
A Flexible and Strategic Funding Model
Founded in 2020, Payaza provides pan-African payment infrastructure that supports collections, disbursements, and white-label solutions for businesses across the continent. Its commercial paper programme is structured to give the company the flexibility to raise capital in stages, depending on market conditions and internal priorities.
“This approach of issuing in multiple tranches is a core benefit of our overall ₦50 billion programme. It allows us to strategically access capital as needed, rather than attempt one massive raise,” Ebenezer added.
This funding strategy enables Payaza to avoid immediate equity dilution—a major advantage for startups looking to maintain control while scaling. With growing investor appetite for short-term, fixed-income instruments, commercial paper is emerging as a viable option for growth-focused startups.
What’s Next for Payaza?
With this new tranche of capital, Payaza plans to expand its payment infrastructure, scale its product offerings, and deepen its reach across Africa. Its successful use of commercial paper sets a precedent for other African fintechs exploring alternative funding routes amid tighter venture capital markets.