In the Fast-Moving Consumer Goods sector, nothing moves slowly, except, ironically, the payments that keep the entire supply chain running.

For years, FMCG companies across Africa have operated with a cruel paradox: their products move at lightning speed from factory to shelf, but their money crawls at a snail’s pace from account to account. A beverage manufacturer can distribute 10,000 cases across Lagos in 24 hours, but paying their European packaging supplier takes 2-5 business days.

Not only is this payment lag annoying. It’s expensive, operationally crippling, and competitively devastating. And until recently, it was just accepted as “how things work.”

Bluebulb decided that acceptance wasn’t good enough. We built something different, a payment infrastructure designed specifically for the realities of African FMCG operations. The results are transforming how an entire sector thinks about supply chain finance.

Contact us today for instant global payments

The Real Cost of T+2 Banking

Nigerian banks, like most traditional financial institutions globally, operate on a T+2 settlement timeline for international transfers. You initiate a payment on Monday (T+0), it processes on Tuesday (T+1), and if everything goes perfectly, your supplier receives funds on Wednesday (T+2).

That’s the official timeline. Reality is often worse:

• Cut-off times mean Monday afternoon payments don’t start processing until Tuesday
• Correspondent banking delays can add another day
• Compliance holds for documentation can extend timelines to T+5 or longer
• Weekend payments don’t start processing until the following Monday

For FMCG companies, this creates cascading problems:

Inventory Management Nightmares: FMCG operates on thin margins and high turnover. Products move fast, which means constant reordering. The average cost of production rose by 67% in the first half of 2024 compared to 2023, making working capital management critical.

When you can’t pay suppliers for 5-7 days, you can’t get goods shipped for 5-7 days. That delay ripples through your entire inventory system, creating stockouts that result in lost sales from which you can never recover.

Supplier Relationship Strain: FMCG companies need to establish an extensive network of distributors and wholesalers to reach consumers in different regions. These relationships depend on trust and reliability.

Working Capital Inefficiency: Every day your payment sits in a banking system is a day your capital isn’t generating value. In an industry where margins are often razor-thin and volume drives profitability, this inefficiency compounds into significant financial drag.

Competitive Disadvantage: Speed isn’t just an operational preference; it’s a competitive advantage. Companies that can commit to faster payments negotiate better terms, secure scarce inventory, and respond faster to market opportunities.

Contact us today for instant global payments

The T+0 Revolution: Instant Global Settlements

Bluebulb didn’t just improve on traditional banking timelines. We fundamentally redesigned how international payments work for African businesses.

Our settlement timelines:

• USA, UK, EU: T+0 (same-day settlement)
• China: T+1 (next-day settlement)

These aren’t aspirational goals or best-case scenarios. These are standard operating procedures for every Bluebulb client.

How T+0 Actually Works

The technical achievement behind instant settlements involves multiple innovations working in concert:

Direct Banking Relationships: Unlike traditional correspondent banking that routes payments through multiple intermediary banks (each adding time and cost), Bluebulb maintains direct relationships with tier-one banks in major markets. This eliminates intermediary delays and provides direct access to local payment rails.

Strategic Liquidity Positioning We maintain currency reserves in key markets, allowing us to initiate local payments immediately rather than waiting for cross-border transfers to complete. You send us naira; we pay your UK supplier in pounds from our UK account, instantly.

Intelligent Payment Routing Our platform analyzes every payment and routes it through the optimal channel based on destination, amount, and timing.

Automated Compliance Processing Traditional banks process compliance checks sequentially: initiate payment, wait for compliance review, proceed if approved, hold if issues arise. We process compliance in parallel with payment routing, eliminating sequential delays.

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Case Study: A Nigerian Beverage Manufacturer’s Transformation

To illustrate real-world impact, let’s examine how one of Nigeria’s largest beverage manufacturers transformed its operations after experiencing Bluebulb’s global payment processes. (Company name withheld for confidentiality).

The Before Picture: Payment Delays Creating Operational Crisis

Our client produces and distributes beverages across West Africa, with annual revenues exceeding ₦15 billion. Their supply chain depends on multiple international suppliers:

• Packaging materials from Italy
• Flavoring concentrates from the UK
• Raw material inputs from multiple European sources

Their traditional payment process looked like this:

Monday: Finance team submits payment requests to their relationship bank Tuesday-Wednesday: Bank processes documentation and initiates transfers Thursday-Friday: Correspondent banking delays
Following Monday-Tuesday: Suppliers receive funds (T+5 to T+7 actual)

This timeline created multiple cascading problems:

The After Picture: T+0 Payments Changing Everything

In September 2024, our client partnered with Bluebulb. The transformation was immediate and dramatic.

Contact us today for instant global payments

New Payment Timeline:

• 9:00 AM Monday: Payment initiated 
• 9:15 AM Monday: Compliance processing complete
• 10:30 AM Monday: UK supplier receives funds (T+0)
• Tuesday morning: Supplier ships goods
• Following week: Products in Nigerian warehouse

From 7-10 days to 24 hours. That’s not incremental improvement. That’s transformation.

This isn’t one company’s story. It’s a sector-wide shift enabled by our payment infrastructure and operational processes.

Supply Chain Finance Reimagined

The FMCG industry is highly competitive, with companies needing to deliver products quickly to stay ahead of competitors. Traditional supply chain finance treated payments as back-office administration. Modern FMCG operations recognize payments as competitive infrastructure.

What This Means for Your FMCG Operation

If you’re running an FMCG business in Africa and still operating with traditional payment infrastructure, you’re competing with one hand tied behind your back.

Your competitors who’ve modernized their payment capabilities are:

• Paying suppliers faster, earning preferential treatment
• Maintaining lower inventory while meeting demand better
• Capturing seasonal opportunities you’re missing
• Operating with lower working capital requirements
• Spending strategic time rather than administrative time on payments

Ready to Transform Your FMCG Operations?

Bluebulb’s payment infrastructure isn’t a theoretical capability or a future promise. It’s operational reality serving hundreds of businesses today, including several of Nigeria’s largest FMCG companies. 

Contact us today or visit www.bluebulb.co.uk to get started.