An effective credit system in Nigeria will help more citizens out of poverty and sustain the middle class.
This was the view of Mr Tunde Balogun, the Chief Executive Officer of SmallSmall, a firm promoting the adoption of instalment payment solutions across industries.
He noted that with purchasing power reducing and the cost of living rising due to inflation, Nigerians can save by paying for goods and services in instalments.
Balogun spoke at a fair organised by SmallSmall in Lagos, during which his firm launched the “Fair App”, designed to create a marketplace for buyers and sellers where payments can be spread.
He believes leveraging instalment payments would reduce financial pressure on citizens while boosting sales for many businesses.
Balogun said: “We started in the housing space as Rent Small Small, which allowed people to pay rent monthly. We’ve done that for about six years. We expanded to Buy Small Small, which allows people to own homes by paying installmentally.
Read Also; Ex Oyo SSG Koleosho dies at 86
“We believe the credit system is needed in Nigeria, but will not happen overnight. We believe at SmallSmall that credit is needed to sustain the middle class and to take people out of poverty.
“Installment payment is one way to grow the customer base and boost revenue.
“We have a new product called the Fair App, and we’ve taken all the lessons we’ve learnt all these years into it.
“Businesses can have a safe marketplace that allows Nigerians to pay for their products or services by instalment.
“We partnered with third parties, such as logistics companies, financial service providers, credit bureaus and verification companies to power credit in Nigeria.
“Currently, many businesses have high unsold inventory because the purchasing power of consumers has reduced.
“However, access to instalment payment is the solution needed by individuals and businesses to navigate this current economic situation. We must deepen instalment payments to ensure sustainable growth.”
Balogun said about 100 vendors participated in the SmallSmall Fair, adding the goal is to have about 1000 vendors on the Fair App with about 500,000 products across different industries within the next three months.
The sectors, he said, cut across textile, electronics, housing, education, and renewable energy, among others, all of which allow for the spread of payment.
He said the Fair App is secure and allows mark-ups depending on the payment plan, to ensure the seller does not lose.
Founder of Herconomy, Ifedayo Durosinmi-Etti, whose firm was one of the exhibitors, believes the fair would boost the growth and success of many businesses, especially female-owned companies.
She said: “Herconomy is a financial technology platform that allows women to grow their wealth. We decided to partner with SmallSmall because the economy is very tough.
“In other countries, you can pay for things in instalments. But in Nigeria, we don’t have any platform that allows you to do so.
“This platform (SmallSmall) allows Nigerians to do that and enables our users to spread payments for purchases. So it’s a fantastic partnership.”
Another exhibitor, Co-Founder of Cargoplug, Kikelomo Fola-Ogunniya, said the company makes logistics services affordable for individuals and businesses globally through a credit facility called “ship now, pay later.”
“We facilitate cross-border movement of goods through air, land and sea. We handle Customs clearing and export.
“You can pay for our services in installments through our Shop Now, Pay Later credit facility,” she said.