In Nigeria’s startup orbit, we are living in two epochs: Before Naira Float and After Naira Float. In that earlier era, the taps of foreign capital flowed with abundance. Term sheets came with less friction, and our innovators raised funds to pursue bold missions. But when the Naira was floated, the storehouse shifted. The currency weakened. Asset values, when mapped in dollars, evaporated. And in that erosion, foreign venture capitalists paused, recalibrated, and many stepped aside.
The impacts are reverberating across the land: young companies are scaling revenue in Naira but running out of oxygen in dollars. Cost structures denominated in foreign currencies have become existential burdens. And when the runway shortens, many founders conclude that the next logical thing is to power down. Lidya joined today: “Lidya, a Nigerian digital lending platform that empowered small and medium-sized enterprises (SMEs), has officially shut down operations due to severe financial distress.” Yet, I have a message: Do not shut down. Rather, consider merging.
Nations rarely expire; Nigeria will rise again. Our market cycles oscillate, but the fundamentals of this land remain evergreen. And when stability returns, and it will return, the ecosystems will blossom again. So, instead of premature endings, founders should look to fusions, to strategic consolidations, to alliances where strengths are pooled. Mergers are not failures. They are repositionings. And yes, someone may need to surrender the “CEO” badge for CTO, CPO, COO, etc. Greatness is not in titles but in outcomes.
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Through mergers, startups acquire scale: shared technologies, expanded customer bases, harmonized teams, and optimized cost structures. Together, they can build resilience, innovate better, and sustain growth. That path is superior to solitary failure.
If you are contemplating shutdown, before you sign that final memo, Tekedia Capital would like to speak with you. We have developed a framework that is working with some of our startups. We understand the peculiar gestation cycle in Nigeria where patience is not just a virtue but a requirement for survival. And we know the opportunities embedded within this nation’s informal and formal markets.
The velocity of capital flow is improving, albeit quietly. Nigeria will be better and remains a promise. And for a merged, strengthened entity, the runway can be extended. So, pause. Re-examine. Reframe. Before concluding that the runway is over, explore the power of mergers. The difference between extinction and dominance may simply be collaboration.
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