TLG Capital, OnePipe sign N2.25bn agreement to finance Nigerian SMEs

Bisola David
Bisola David
TLG Capital, OnePipe sign N2.25bn agreement to finance Nigerian SMEs

TLG Capital, a pan-African alternative investment firm today declared that it has teamed up with OnePipe to offer financial services to Nigeria’s unorganized sector.

The firm is giving N2.25 billion Naira in a collateralized loan facility to OnePipe, a Nigerian financial infrastructure company that uses its technological platforms to enable conventional businesses to incorporate financial services within their operations.

The transaction, which represents TLG Capital’s 34th investment, was executed by the TLG Africa Growth Impact Fund. OnePipe announced that the investment would be used to finance inventory for Nigerian small businesses.

With a goal of becoming Nigeria’s top supplier of financial services to the informal sector, OnePipe will be able to expand its operations thanks to the investment from TLG Capital.

Over 85% of jobs in Africa are in the informal sector, according to the International Labor Organization. Financial access to this industry is essential for promoting economic growth and eradicating poverty.

Speaking on the agreement, the CEO of OnePipe, Ope Adeoye, stated that TLG was the best choice as a partner because of their vast knowledge of debt structuring in Nigeria and their broad network throughout Africa, notably in venture capital. TLG, who serves as our first debt partner, has been a valuable tool in helping us plan our growth and balance sheet strategy.

“We hope to create the infrastructure through this relationship to offer credit and payment services to the two-thirds of Nigerian business owners who lack access to efficient and useful banking services.”

A financial expert at TLG, Isaac Marshall, added that Nigeria’s $220 billion cash-based informal sector, which is made up of 38 million firms, is the most underserved section of the country’s economy and is shunned by both fintech and conventional banks.

“OnePipe has invented a strategy that can give tens of millions of micro-enterprises consistent income development with a clever product to enable these companies get loans and better purchasing conditions on their commodities.

“TLG Capital and OnePipe are eager to engage with one other to further financial inclusion and economic development in Nigeria,” he continued.

A number of Sustainable Development Goals, including SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 9, are supported by TLG Capital’s investment in OnePipe (Industry, Innovation, and Infrastructure).

OnePipe helps to foster economic growth and establish sustainable revenue growth by giving credit to unofficial micro businesses.

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