Debt is changing the way Nigerian startups scale.
In Lagos, The New Practice (TNP) hosted a roundtable to show how founders can use debt as a growth engine.
Moreover, the event, themed “Scaling Smarter: Debt Markets as a Growth Catalyst for Startups,” brought investors and financial experts together to discuss practical strategies.
Partner at TNP, Bukola Bankole, explained that debt sharpens discipline, enforces accountability, and strengthens financial management.
In addition, he noted that equity often dilutes ownership, while debt keeps founders alert and focused.
Many Nigerian startup founders still lack knowledge about listing requirements on the Nigerian Exchange (NGX), which slows growth and limits long-term sustainability.
Lessons From Payaza
CEO of Payaza Africa, Seyi Ebenezer, shared how he built his fintech using disciplined debt rather than equity.
Notably, Payaza raised ₦40.37 billion through its N50 billion commercial paper programme, demonstrating strategic discipline in action.
Despite venture capital offers, Payaza deliberately chose debt.
As Ebenezer explained, “We decided this could succeed on a debt level.”
He emphasised that discipline, not intelligence, drives business success. “Disciplined people supervise smart people,” he added.
Debt enforces structure and accountability.
With interest accruing daily, founders must plan, meet deadlines, and maintain financial hygiene.
Consequently, this approach lays a foundation for sustainable growth.
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Regulatory Support Matters
CEO of NGX Group, Temi Popoola, highlighted that SEC support lowered barriers and enabled broader participation.
However, startups must disclose information when raising funds.
A TLP Advisory report revealed over half of founders lack knowledge about NGX listing processes.
Therefore, missing local listings could hinder long-term growth.
In conclusion, Payaza’s story shows that disciplined debt use allows startups to plan, grow, and scale smarter.
Consequently, debt becomes a tool for accountability and sustainable success.
