To address the challenges posed by foreign exchange (FX) scarcity, CEO and Co-founder, SeamlessHR, Emmanuel Okeleji, has urged local businesses and industries to consider leveraging local software as a service (SaaS) solutions.
He said this is a strategic measure to combat the adverse effects of forex volatility and reduce the strain on the demand for foreign exchange in Nigeria.
“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 FX volatility on their bottom line,” he said.
His comments come in the wake of 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 the year. 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 he said is detrimental to many organisations.
Positioning the adoption of local SaaS as a pivotal strategy, he 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 services while reducing operational and production costs. Any business that does not approach its operations with this mentality will be vulnerable to the unpredictability of the market,” he said.
