In a bid to address the challenges posed by forex volatility in Nigeria, the CEO and co-founder of SeamlessHR, Emmanuel Okeleji has urged businesses to consider leveraging local Software as a Service (SaaS) solutions.
This call is a strategic measure to combat the adverse effects of forex volatility and reduce the strain on the demand for foreign exchange in Nigeria.
Okeleji said: “with the unpredictable nature of the forex markets, it is imperative for organisations to start looking for how to explore innovative and cost-efficient solutions in their operations. Investing in local SaaS tools offers a more sustainable alternative, allowing businesses to mitigate the impact of forex volatility on their bottom line.”
He noted the Central Bank of Nigeria’s (CBN) recent decision to raise the Monetary Policy Rate (MPR), the benchmark for the interest rate in the country to an all-time high of 22.75 per cent in its first MPC meeting of 2024.
“Additionally, the apex bank increased the cash reserve ratio (CRR) to 45 per cent and the Liquidity Ratio retained at 30 per cent. These measures are expected to have far-reaching implications, one of which is higher borrowing costs for businesses, which is detrimental to many organisations,” he said.
Positioning the adoption of local SaaS as a pivotal strategy, Okeleji underscored the importance of operational efficiency in navigating the complex economic landscape.
“In 2024, the keywords for businesses are Operational Efficiency and Cost Control. How we can improve the quality of our services while reducing our operational costs. Any business that does not approach its operations with this mentality will be vulnerable to the unpredictability of the market,” he added.
SeamlessHR, under Okeleji’s leadership, has been at the forefront of advocating for technological innovation and efficiency in the African business landscape.
The company recently announced the successful processing of a staggering N500 billion worth of payroll for various African businesses throughout the year 2023.
The company recently raised $10 million in a Series A round of funding to double down on its impressive pan-African expansion and build a new embedded finance product.
