Imagine Mama Ngozi, a hardworking tomato seller in the village planning to start her own farm in the next three years. Now, Mama Ngozi is saving up her money and wants to know if it’s wise to invest in dollars instead of naira for her future farm business.

Well, for someone like Mama Ngozi planning to start a business in Nigeria in the near future, it’s usually safer to invest in the local currency, which is the naira. This is because Mama Ngozi’s business will most likely operate in Nigeria and deal with local expenses like rent, salaries, and other costs in naira.

Investing in a foreign currency like dollars can be risky for Mama Ngozi because exchange rates can be unpredictable and fluctuate over time. If the naira strengthens against the dollar by the time Mama Ngozi needs the money for her farm, she’ll end up with less naira when she converts her dollars back.

So, for Mama Ngozi and many Nigerians planning to start businesses in Nigeria, it’s usually wiser to invest in naira to avoid currency exchange risks, especially when the business will mainly be dealing with local expenses and revenues. This way, Mama Ngozi can better protect her hard-earned money and ensure she has enough funds to kickstart her dream farm business successfully in the future.