Nigerian businesses moving cash to the United Kingdom are losing significant time and money due to slow, expensive transfer processes, according to new industry data. The inefficiencies are prompting calls for faster, cheaper cross-border payment solutions.
The High Cost of Slow Transfers
Data from financial technology firms indicates that businesses face delays of up to five days and fees averaging 3.5% when transferring funds to the UK. These costs eat into profit margins and strain cash flow, particularly for small and medium-sized enterprises (SMEs) that rely on timely payments for imports and services.
“The current system is simply not built for the speed of modern commerce,” said a spokesperson for a leading payment platform. “Businesses are losing both time and money, and that is a competitive disadvantage.” The report highlights that traditional correspondent banking routes are the main culprit, with multiple intermediaries adding both time and fees.
Real-World Impact on SMEs
For a typical SME transferring ₦50 million, the 3.5% fee amounts to ₦1.75 million lost, plus potential interest costs during the five-day delay. This is a substantial burden for companies already navigating currency volatility and high operating costs in Nigeria.
“Every day of delay means a day of lost opportunity,” the spokesperson added. “When you’re waiting for goods to clear at the port or paying a UK supplier, a five-day wait can disrupt your entire supply chain.” The report stresses that these inefficiencies are not just a nuisance but a direct drag on business growth and competitiveness.
Tech Solutions on the Rise
In response, fintech companies are introducing alternative corridors using stablecoins and blockchain technology, which can settle transfers in minutes at a fraction of the cost. These solutions are gaining traction, but adoption remains limited due to regulatory uncertainty and a lack of awareness among traditional businesses.
Industry analysts suggest that if these digital channels were fully embraced, Nigerian businesses could save up to ₦200 billion annually in transfer fees and avoid millions in opportunity costs. The report concludes that the pressure is now on regulators and banks to modernize the payments infrastructure or risk losing business to more agile fintech competitors.
