Monday, June 21, 2021 / 08:50 PM / by Bode Agusto / Header
Image Credit: WebTV
Being text of
presentation made by Bode Agusto to the alumni of
Cranfield University in Nigeria On 19 June 2021
Macroeconomic environment will remain tough!
are the harsh realities over the next few years!
But there are opportunities!
the mass market e.g.
- Food & drink
- Personal Care Products
- Voice & data
- Settlement of transactions (Payment systems)
the niche market e.g.
- Education (primary & secondary)
- Compliance services (e.g. audit, tax)
There are also opportunities to...
- employ "cheap" labor
- borrow money at subsidized interest rates
- earn hard currencies by exporting
- raise capital at valuations that bear little relationship to earnings
But there are challenges!
for the share of wallet of consumers with falling purchasing power
- Which means that your product or service must be considered a
necessary in the mass market
- Rising cost of materials
- Which means you should try and source materials locally provided
source is reliable and price is competitive
- Growing insecurity
- Which means you should redefine "where to play" and if you must play
in less secure areas consider working remotely and/or insurance
- Rapidly devaluing NGN
- Which means you should not owe hard currencies (USD, GBP, Euro, RMB,
- It also means you should try and export some of your goods and
services and earn hard currencies
you use technology to scale and customize your
products or services?
yourself a tech company
your equity in USD, based on your business model and potential earnings
successful if potential becomes reality
About the Author:
Olabode Mubasheer Agusto, founder of Nigeria's leading ratings agency Agusto & Co. Limited, has public and
private leadership experience spanning over 30 years including PriceWaterhouse,
Nigeria International Bank, Director of the National Pension Commission,
Member of the Central Bank of Nigeria Monetary Policy Committee and Director-General of the Budget Office of the Federation. Mr. Augusto is a fellow of the
Institute of Chartered Accountants of Nigeria. Bode Agusto
- Nigeria - How to Win
- Outlook 2021: Understanding the
Mega Trends of a Crucial Year for an Economy
- Coronanomics (1) - Understanding
the Realities of an Impending Recession
- Rising Healthcare Cost and the Surge in Consumer
- Nigerians Refuse to Hold Breadth as Inflation Rises
- Comercio Partners May 2021 Macro-Economic Report -
Trajectory of Inflation Points Northwards
- Uptick in Q1 2021 Merchandise Trade
- Q1 2021 Total Debt Figure: Moderate Risk of Distress
Despite Rising Debt Level
- Public and FGN Domestic Debt Ratios under Control
- Trade Deficit Widens to $9.61bn in Q1 2021; Naira
- Nigeria's Total Public Debt Stood at N33.11trn as of
March 31, 2021 - DMO
- Q4 2020 BoP: Shrinking of the Services Deficit for
- Q1 2021 Foreign Trade Report: Trade Deficit Worsens
on the Back of Currency Devaluation
- Oil Prices and Foreign Exchange (FX) Reserves
- Twitter Ban: The Need to Embrace and Support the
- It is Time for Nigeria to Lay A Solid Foundation for
the Economy - Tope Fasua
- May 2021 Inflation Expectation: Inflation in
Advanced Climes Sees Uptrend
- Economic Policy: More Clarity, Less Ambivalence -
LBS Executive Breakfast Session - June 2021
- Nigeria Q1 2021: Out of Recession into Stagflation
- Q1 2021 National Accounts: Green Shoots in Short
- PMI Reading No 98: Lower But in Positive Territory
- National Poverty Reduction with Growth Strategy:
Serious Business or Playing to the Gallery?
- The CBN's Box of Tools
- Inflationary Pressure Still Stretching Wallets
- FAAC Payouts Inadequate, and on a Plateau
- Sluggish Recovery on Weak Macroeconomic Fundamentals
- #TheAnalystSpeaks: Implications of the 279th Central
Bank of Nigeria MPC Meeting
- Slow GDP Points to MPR Rate Hold
- Manufacturing Sector Slips Out of Contraction in Q1
- Nigeria's Real GDP Grew by 0.51% YoY in Q1 2021 -
- Falling Inflation Allows MPC A Temporary Sigh of
- More and More Debt...Where Do We Draw the Line?
- Headline Inflation Slips to 18.12% in April 2021: A
Blip or a Trend?