Some business leaders in Nigeria have outlined critical strategies to help Nigerian startups remain resilient and sustainable as they navigate the current challenging economic climate.
The insights were shared during an Executive Mixer hosted by Spacefinish and Campus HQ at the Flutterwave headquarters in Lagos.
The event brought together leaders from the tech and financial sectors to discuss practical ways startups can stay afloat amid currency volatility, policy shifts, and investor scrutiny.
Speaking at the event, Senior Vice President of Business Development at Flutterwave, Oluwafunmilayo Olaniyi, advised startups to build strong relationships with regulatory stakeholders.
“The policy of today may make you create something, and then tomorrow, the policy changes. You need to be close to regulators and stay informed on upcoming policies that may affect your business,” she said.
Olaniyi emphasized that startups that maintain open communication with policymakers are better positioned to adapt to sudden regulatory shifts.
Hedging against currency volatility
For the Country Director at VertoFX, Dr. Austin Okpagu, startups must adopt smart treasury management by diversifying their holdings across multiple currencies.
“If your revenue is predominantly in naira, and you know how volatile that is, keep your money in multiple currencies,” he said, adding “even the dollar isn’t a safe haven anymore in this climate.”
- He highlighted the roles of modern fintech platforms, stating that startups can now store and transact in up to 50 currencies without needing multiple bank accounts—an approach that helps mitigate exchange rate shocks and simplifies cross-border payments.
- Dr. Okpagu also stressed the importance of agility, noting that startups can no longer afford to stick to fixed quarterly strategies.
“Global economic volatility means many companies now revise their strategies monthly. The playbook is constantly changing,” he said.
Providing insights on the next frontiers of business in Africa, the Founder of Phillips Consulting Limited, Mr. Foluso Phillips, said businesses offering services in health and education sectors are the next big thing.
According to him, people are now reprioritizing their needs and spending more on and education and health and any organization that is ready to meet people’s needs in these areas would thrive.
Strengthening governance structures
Speaking on long-term sustainability, CEO of the Nigerian Exchange Group (NGX), Mr. Jude Chiemeka, emphasized the role of good governance and ESG (Environmental, Social, and Governance) practices.
“For a company that really wants to go long, they have to think about how the environment will be impacted by what they do, the governance structure, which is why we will advocate that if you’re not listed, you need to get listed.
“When you are listed, you get two things, one is price discovery, but more importantly, it subjects your business to the right governance structure, because that is really the backbone of sustaining whatever enterprise you’re building.
“As an entrepreneur, you put in all that sweat and all that work, but if you don’t have the right governance structure, what will happen is that your competitor that is listed, that has the right governance structure, will attract more funding,” he said.
He noted that this was why companies listed on the premium board of the NGX are attracting more funding, because no institutional investor will want to invest in a business where they can’t trust the governance structure.
In his closing remarks, CEO/Founder of Spacefinish and Campus HQ, Remi Dada, said the event was designed to equip startups with the tools and insights to survive and thrive.
