Startups in Nigeria are being encouraged to rethink their growth strategies and tap into the country’s expanding debt markets as a disciplined, sustainable alternative to relying solely on venture capital. Legal and capital-market experts made this call at a roundtable convened by The New Practice, in collaboration with Andersen, at its Lagos headquarters.
The session, themed “Scaling Smarter: Debt Markets as a Growth Catalyst for Startups,” highlighted how instruments such as commercial papers and structured debt programs are increasingly accessible to high-growth companies. Moderated by TNP Partner Bukola Bankole, the roundtable brought together senior market leaders, including NGX Group CEO Temi Popoola, GCR Ratings Sector Head Timchang Gwatau, Payaza Africa CEO Seyi Ebenezer, and Norrenberger Lead for Structured Products Adedayo Aderoju.
Speakers emphasized that debt financing compels founders to operate with discipline, transparency, and financial responsibility, qualities essential for sustainable growth, even in volatile markets. Ebenezer explained that Payaza Africa deliberately chose a commercial paper-driven approach over equity funding, raising N40.37 billion across four series of its N50 billion program. “When people are in debt, they become disciplined,” he said, noting that interest obligations enforce planning and accountability.
Panelists also highlighted regulatory improvements that have lowered barriers for startups entering the capital market. Popoola praised the Securities and Exchange Commission for providing flexible frameworks and supportive oversight, while Aderoju reminded founders that market access comes with rigorous disclosure and governance obligations. Gwatau broke down the key factors analysts assess for credit ratings, including operating environment, business profile, and forward-looking financial resilience.
The discussion concluded with a unified message: startups that embrace structured, debt-driven growth can scale smarter, stronger, and on their own terms, positioning them for long-term success and resilience in Nigeria’s evolving business ecosystem.
