For investment and businesses to attract global attention, there is the need to focus on Business Unit Economics, says Interswitch.
This, it added, would gear up efforts for entrepreneurs, business leaders, private sector players to tap into the county’s vibrant business landscape.
Speaking on the theme ‘Doing Business in Nigeria: The Opportunities, Challenges and Realities’, Interswitch Group founder and chief executive officer(CEO), Mitchell Elegbe delved through the dynamic trajectory of Interswitch’s business operations, starting from 2002 when key infrastructural elements such as power and telecoms were at a nascent stage.
He acknowledged that Nigeria is probably not one of the easiest markets in the world to do business, however, he stressed that, compelling business opportunities exist only where there are challenges, pointing out that, regardless of the challenges and constraints in the local operating environment, some particular industries and sectors have consistently bucked the trend and shown great promise.
In his view, the performance of these outliers is attributable to factors such as the ability to adapt and innovate within the local market hinged on pragmatism and nimbleness, understanding of consumer behaviour and agile responses to changing business landscapes.
According to Elegbe, who set things in context through the lens of fintech businesses, “there are significant differences between the typical Silicon Valley business model and what is necessary for sustainable success in a market like Nigeria, particularly in the current global investment climes.”
To him, operating in the Tropical Savanna that Nigeria is, warrants the business to ensure products/services are designed to meet people at their points of need, whilst essentially ensuring proof of concept, focus on unit economics and scaling to achieve volumes in spite of thin margins, with a view to driving profitability as an early priority.
He emphasised that Unit economics are instrumental in evaluating the economic sustainability and profitability of the business model, providing insights into whether the business is generating sufficient value to justify the associated costs.
Other keynotes were delivered by Wole Adeniyi, The Chief Executive Officer, Stanbic IBTC Bank, who was represented by Olu Delano, Executive Director for Personal and Private Banking as well as Binta Max-Gbinije, Chief Executive, BMG Seven Limited, each bringing unique perspectives and expertise to the discussions.
The conference agenda was thoughtfully curated to address key themes and topics relevant to doing business in Nigeria, with sessions covering market entry strategies, regulatory compliance, risk management, investment incentives, innovation, and sustainability, among other salient themes.
Beyond the informative sessions and workshops, the Doing Business in Nigeria Conference 2024 provided platforms for networking and collaboration, including a business pitch session targeted at emerging entrepreneurs.
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