Nigeria News Highlights Currency Volatility Challenges
Amidst discussions at the 21st Annual Africa Venture Capital Association Conference in Abuja, experts noted that dollar-based financing is unsustainable due to Nigeria’s currency volatility. Investors now find dollar returns unattractive, emphasizing the need for naira-based investments to better maximize value as local startups earn in naira.
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Key Takeaways:
- Local investments in naira potentially yield greater returns than those in dollars.
- Currency volatility in Nigeria occurs every six to eight years.
- Emphasis on increasing local investor participation for sustainable growth.
Lagos News: Investing in Naira for Long-term Gains
Gbenga Hassan of Argentil Capital Management stressed the benefits of investing in naira, while Yewande Adewusi from Alitheia Capital highlighted how it shields investors from currency fluctuations. This could ensure more consistent returns and stability for startups in Nigeria and West Africa.
Question to Discuss: How can local investors be incentivized to participate more in Nigeria’s evolving financial landscape?
Feel free to share your thoughts!
