In a bid to address the challenges posed by forex volatility in Nigeria, Dr. Emmanuel Okeleji, the CEO and Co-founder of SeamlessHR, a payroll and HR technology company, 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.
According to Okeleji, “With the unpredictable nature of the forex markets, it is imperative for organizations 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”.
Okeleji’s 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% in its first MPC meeting of 2024. Additionally, the apex bank increased the cash reserve ratio (CRR) to 45% and the Liquidity Ratio retained at 30%. These measures are expected to have far-reaching implications, one of which is higher borrowing costs for businesses, which is detrimental to many organizations.
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.”
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 ₦500bn worth of payroll for various African businesses throughout the year 2023.
