Reimagining Trade Finance for African SMEs

Nigeria’s e-commerce sector is experiencing explosive growth, projected to exceed $30 billion this year—more than double 2023 figures. While digital marketplaces have democratized access to global markets, a critical infrastructure gap persists: the financial plumbing struggles to keep pace with this rapid expansion.

Anthony Oduu, co-founder and CTPO of Verto, explains that while Nigerian businesses can now effortlessly reach buyers worldwide, repatriating revenue remains challenging. Correspondent banking fees, hidden FX spreads, and regulatory hurdles often consume margins, particularly for SMEs.

The Compliance Paradox

The Central Bank of Nigeria’s (CBN) 180-day export proceeds repatriation rule has intensified this pressure. While compliance is essential, Oduu argues that it shouldn’t come at the cost of profitability. Verto offers a solution: multicurrency wallets that allow merchants to monitor real-time pricing and execute trades only when target rates are reached—ensuring compliance while preserving margins.

Transparency in FX Pricing

Traditional FX markets operate with limited transparency, particularly for African businesses. Exporters often see final rates without understanding the underlying fees or available liquidity. Verto addresses this by creating a marketplace that aggregates liquidity from over 300 global providers—including banks, fintechs, and corporations—allowing direct trades at mutually agreeable rates.

Inclusive Financial Infrastructure

Perhaps most strikingly, Oduu notes that 92% of African SMEs still face challenges with cross-border payments due to rigid bank compliance requirements. Verto’s risk-based onboarding framework focuses on actual trade activity rather than bureaucratic consistency—extending financial inclusion to businesses often excluded by traditional institutions.

By reimagining trade finance infrastructure, Verto is helping Nigerian SMEs capitalize on global e-commerce opportunities without sacrificing profitability or regulatory compliance.