See, in Naija, business don’t just run, e dey dance. And this dance, especially when Naira dey do shakara, fit scatter even the strongest business if you no sabi the steps.
When Naira Dey Do Shakara: Why E dey Happen?
The Global Rhythm
First things first, Nigeria no dey alone for this global economy. Market global prices, especially for oil, fit shake Naira tire. When oil price dey fall, money wey dey enter the country dey reduce, and that one dey put pressure on Naira.
Government Plays Their Own Tune
Government policy too dey influence the dance. Sometimes, decision wey dem make about how dem manage foreign exchange (forex) or how dem dey spend money fit make Naira weak or strong. Even election period or political wahala fit cause serious shake for the currency.
Market Speculators Wey Like Cruise
Sometimes, traders and speculators just dey play games. Dem dey buy or sell Naira based on rumors or wetin dem think go happen next. This kind speculation fit cause rapid changes wey no dey follow the real economic situation.
How Naira’s Wobble Affect Your Pocket (and Your Business)
Importation Wahala
If your business dey import goods or raw materials, Naira devaluation na big headache. Wetin you dey buy for 00 yesterday fit cost double tomorrow. This one go increase your cost of production and if you no fit pass am to customers, your profit dey vanish.
For example, imagine say you dey import phone accessories. Before, N700 per dollar was manageable. But if Naira drop to N1800 per dollar, your cost of importing go shoot up, and you go fit no fit sell again because price go too high for market.
Pricing Palava
Setting prices for your products or services become like playing lottery. How you go price something when you no sabi wetin the dollar go cost next week? This uncertainty dey make planning hard and fit affect your sales.
Export Export, But No Import Back Properly
On the flip side, if your business dey export, a weaker Naira fit make your goods cheaper for foreign market. This one suppose to be good, abi? But many times, the raw materials or machines you need to produce those goods still dey import, so you still dey face the high import cost.
Supply Chain Confusion
When Naira dey shake, it fit disrupt how you get your materials. Suppliers wey dey deal in foreign currency go change price, and sometimes, dem fit stop supply waiting cause delay for your production. This one fit lead to missed deadlines and unhappy customers.
Sabi the Dance Steps: How to Stay Steady
Manage Your Money Like Oyibo
This one na very critical. Make sure say your business money and your personal money no mix like Moi Moi and Efo-riro. Get separate business account. Track every kobo wey enter and wey leave. Use apps like Pearmonie or similar tools wey dey help track finances for small business. This go give you clear picture of your cash flow and help you make better decisions.
For example, if you dey sell fashion items, track your sales daily. If you import fabric, record the exact amount you spend in Naira and the equivalent in dollars at the time of purchase. This record go help you see where your profit dey go.
Diversify Your Basket
No put all your eggs for one basket. If your business dey rely too much on one product or one supplier, especially if dem dey import, you dey risk am. Try to find local alternatives for your raw materials or products. Explore new markets or add new services wey no dey depend as much on forex.
If you dey sell electronics, alongside imported phones, maybe you fit start to focus more on phone repair services or sales of locally sourced accessories. This way, if import cost rise, other parts of your business still dey stand.
Hedging Your Bets (Contractual Style)
For businesses wey dey deal with international contracts, explore hedging options. This can involve agreeing on a fixed exchange rate for future payments with your supplier or customer. Or you fit use forward contracts wey banks dey offer to lock in an exchange rate for a future transaction. Talk to your bank or a financial expert about wetin fit work for you.
Imagine you agree to supply goods worth ,000. If you sign a contract where the customer agrees to pay you N1,800,000 (based on N180/$), even if Naira drops to N1500/$, you still get your agreed N1.8 million. This agreement protects you from sudden drops.
Stay Informed, Stay Ahead
No sleep for head! Keep your eyes on the news about forex rates, CBN policies, and global economic trends. Understand how these things dey affect your industry. This knowledge go help you plan ahead and adjust your strategies before wahala full ground.
Build Strong Local Roots
Focus on building a strong local customer base. Excellent customer service, quality products made locally where possible, and understanding the Nigerian market needs go make your business more resilient. When local demand strong, you no go suffer too much when international market dey shake.
Remember, customer satisfaction index for Nigeria dey improve, but e still get areas wey e poor. This means good service na real advantage. If you sabi treat your customers well, dem go stick with you even when the economy dey rough.
Conclusion
Dancing with Naira’s wobbly steps no easy, but e no impossible. With proper planning, smart financial management, diversification, and staying informed, your business fit not just survive, but even thrive. The key na to be flexible, understand the rhythm, and always have your dancing shoes ready.
