African firms lose 20% on overseas transfers – Fintech CEO

Politics Spice Special Features Education Sex & Relationship Interview Columns Opinion Advertise with us African firms lose 20% on overseas transfers – Fintech CEO Information Technology October 26, 2026 12:00 am File photo: Fintech

African businesses can lose up to 20 per cent of their funds when transferring money across borders, the Founder of financial technology company VitalSwap, Akinsola Jegede, has said.

A report by ODI Global, titled Cross-border digital payments and identity in Nigeria under the AfCFTA, found that 84 per cent of surveyed businesses experienced system glitches. In comparison, 80 per cent reported regular delays in receiving payments from other African countries. The study identified fragmented systems, misaligned regulatory processes and repeated verification requirements as barriers to cross-border trade.

Against this backdrop, VitalSwap, a financial technology company founded by Akinsola Jegede, aims to help African businesses manage international transfers, collect payments from overseas customers, and settle obligations with foreign suppliers through a single platform.

Jegede said businesses could lose up to 20 per cent of their funds when moving money across borders, arguing that transfer services alone were insufficient to address the challenges companies face when operating internationally.

“When we saw businesses losing up to 20 per cent of their funds simply moving money across borders, we knew solving peer-to-peer transfers wasn’t enough. We had to build a complete financial engine that allows African businesses to operate globally without the traditional friction,” he wrote in a note shared with The PUNCH.

However, the company did not provide a breakdown of how the 20 per cent figure was calculated or how much it represented in transfer fees, foreign exchange costs and other transaction-related charges.

One of the business segments VitalSwap is targeting is Nigeria’s automobile import market, where dealers purchase vehicles through United States auction platforms, including Copart and IAA.

The payment process can be time-sensitive. According to Copart’s published payment instructions for international buyers, payments must reach their account within three business days of a vehicle sale, including the day of sale. The company charges a $50 late fee for each vehicle if payment is not received within that period.

Copart also advises international buyers to allow for delays associated with wire transfers, which can take up to three business days or longer during public holidays. Buyers are encouraged to send funds ahead of an auction so that the money is available when needed.

These requirements illustrate why payment speed and accurate transaction processing matter to importers, who must meet auction deadlines while managing foreign exchange costs and other expenses associated with bringing vehicles into Nigeria.

VitalSwap’s High-Value Transfer service allows businesses to make international payments ranging from $5,000 to $5m in a single transaction, the company said. It added that payments are made from registered business accounts in the company’s name.

The service is also intended for logistics operators paying overseas freight agents and shipping partners, as well as companies involved in international procurement and settlements.

VitalSwap initially focused on facilitating cross-border transfers from Nigeria before expanding its services to businesses operating across multiple currencies and markets.

The company said it serves more than 30,000 users across Africa, Asia, Europe and North America, with its infrastructure supporting transactions in more than 30 countries. These figures were provided by the company and were not independently verified.

Beyond international transfers, VitalSwap offers a Payment Link feature that allows businesses to collect payments through more than 10 payment methods. Its checkout service enables companies to integrate payment processing into their websites and applications through an application programming interface.

The platform also provides business wallets, currency management, settlement and transaction-tracking tools, which the company says allow businesses to oversee their payment activities in one environment.

The wider challenge extends beyond transactions with suppliers in the United States and other international markets. Nigeria’s participation in the African Continental Free Trade Area also depends on businesses being able to receive and make payments efficiently across African borders.

The ODI Global report, published in April 2026, indicated that Nigeria had processed 22 billion digital transactions in six months in 2024, highlighting the scale of its domestic digital payment infrastructure. However, it noted that the country’s established digital payment systems had not yet translated into frictionless continental trade.

The report identified the need for interoperable corporate digital identity systems, better regulatory coordination, and payment pathways suited to small and medium-sized enterprises. The report also noted that verification and compliance procedures could delay transactions that would otherwise be processed quickly.

Justice has over three years experience spanning digital and print media. At The PUNCH, he currently covers the automobile sector with special interest in features and industry analysis.

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