The Group Founder and Chief Executive Officer of Interswitch, Mitchell Elegbe has given insights on how businesses can survive and expand in Nigeria, despite the obvious fact that the country is probably not one of the easiest markets in the world to do business.
Speaking at the 2024 edition of the ‘Doing Business in Nigeria Conference’ which was held last week in Lagos with the theme ‘Doing Business in Nigeria: The Opportunities, Challenges and Realities’, the Interswitch boss noted that 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.
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.
“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,” he said.
He added that operating in the Tropical Savannah 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 despite thin margins, to drive profitability as an early priority.
He emphasized 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.