Lagos, Nigeria – March 2026 has marked a pivotal moment for Nigerian businesses engaged in international trade, as leading fintech innovator Nomba, formerly Kudi, has officially launched a groundbreaking partnership with UK-based payment solution Volume. This collaboration enables Nigerian merchants to seamlessly receive direct British Pound (GBP) payments from customers in the United Kingdom, leveraging the sophisticated framework of Open Banking. The move is set to dramatically reduce the prohibitive costs and complexities traditionally associated with cross-border transactions, fueling a new era of growth for African enterprises.
Addressing the 'Diaspora Payment Tax' with Open Banking
Historically, Nigerian businesses selling to the lucrative UK market have grappled with significant 'diaspora payment taxes', often losing between 6% and 7% of their revenue to card processing fees, currency conversion charges, and various cross-border surcharges imposed by traditional global card networks. Nomba’s new payment corridor, established through its partnership with Volume, directly confronts these inefficiencies. By integrating with the UK’s Open Banking infrastructure, the solution facilitates direct bank-to-bank transfers, bypassing intermediaries and their hefty fees.
The process is designed for utmost simplicity and speed. UK customers, at checkout, can now opt for a direct bank transfer, authorizing the payment instantly via their own banking app. This transaction utilizes the UK's secure Faster Payments infrastructure, ensuring near-instantaneous fund movement. For Nigerian merchants, the benefits are immediate: funds settle directly and instantly into a dedicated GBP wallet provided by Nomba. This multi-currency wallet offers businesses the flexibility to hold funds in pounds, convert them to Nigerian Naira (NGN), US Dollars (USD), or other desired currencies, providing unparalleled control over international earnings.
According to Yinka Adewale, CEO of Nomba, the ultimate goal is to make international transactions feel as simple as local ones. This vision is rapidly becoming a reality, empowering Nigerian entrepreneurs to dismantle financial barriers and expand their reach globally.
Strategic Expansion and Tangible Market Impact
This UK payment corridor is a cornerstone of Nomba's ambitious strategy to build robust global payment infrastructure for African businesses. The company's recent strategic moves underscore this vision: a significant expansion into the Democratic Republic of Congo in November 2025, and the acquisition of a Canadian payment service provider in January 2026. These initiatives are meticulously designed to facilitate seamless trade and financial flows between Africa and the rest of the world, positioning Nomba for further expansion into other European markets where Open Banking is mature.
Early adopters are already experiencing profound benefits. Lagos-based beauty brand, BeautyByDaz Nigeria, serves as a compelling example, having successfully processed over £5,500 from UK customers within its first two months of utilizing the new system. Founder Zaynab Odusote lauded the convenience of managing both local and international sales from a single, intuitive dashboard.
The economic significance of the UK-Nigeria corridor is substantial. The United Kingdom is home to one of the largest Nigerian diaspora populations, estimated at over 270,000 individuals, with recent years seeing a rise in migration. This diaspora significantly contributes to trade links, with total trade volume between the UK and Nigeria reaching an impressive £95.7 million ($128 million) in December 2025, encompassing e-commerce purchases, remittances, and professional services.
DATA ANALYSIS: Potential Savings for Nigerian Businesses
By drastically cutting transaction fees from an average of 7% to approximately 1%, Nomba's partnership is poised to unlock substantial financial benefits for Nigerian businesses. Considering the reported trade volume of £95.7 million between the UK and Nigeria in December 2025, we can estimate the potential savings for Nigerian merchants in a single month:
- Previous Transaction Cost (at 7%): £95,700,000 * 0.07 = £6,699,000
- New Transaction Cost (at 1%): £95,700,000 * 0.01 = £957,000
- Estimated Monthly Savings: £6,699,000 - £957,000 = £5,742,000
This equates to an approximate 85.7% reduction in transaction costs for businesses utilizing Nomba's new corridor, retaining millions of pounds in revenue within the Nigerian economy. This financial injection can be reinvested into growth, innovation, and job creation, strengthening the nation's economic landscape.
Transaction Fee Comparison: Old vs. New Corridor
Nomba, which evolved from a chatbot known as Kudi in 2016 to a comprehensive payments platform in 2022, serves hundreds of thousands of merchants and processes billions of dollars in annual transaction volume. The company’s journey from agency banking to providing a full suite of business tools—including POS terminals, payment gateways, business accounts, treasury tools, and payroll services—demonstrates its commitment to building world-class financial infrastructure for African businesses.
This innovative UK corridor is not merely a new feature; it is a critical step towards a more equitable global financial landscape, fostering greater accessibility and profitability for Nigerian entrepreneurs on the international stage. Nomba continues to invite businesses to explore this transformative payment solution and leverage its capabilities to expand their global footprint.
