Country manager, Nigeria for Zoho, Kehinde Ogundare has elaborated on the recent price adjustment for users in Nigeria as a challenging decision for the company, resulting from a thorough evaluation process. Despite the economic conditions in the country, Zoho waited four years before implementing the new pricing structure.
This decision came after a communication sent to Nigerian users informing them of the pricing revision to better align with the current market conditions and ensure the sustainability of premium services starting from August 2024.
According to Kehinde Ogundare, the continuous depreciation of the Naira from N350 to $1 to around N1500 in less than two years necessitated the review. He mentioned that before notifying users about the price update, extensive internal discussions took place over several months.
Zoho employs a local currency billing approach in key African and Middle Eastern markets. Speaking at a session in Lagos with media representatives, Kehinde revealed that the existing price structure for Nigerian users was established in 2020 following a CBN directive, making it challenging to bill consumers in USD. Consequently, his team had to swiftly devise pricing in Naira to comply with the local currency regulations.
Moreover, he highlighted that the pricing in local currency offered substantial discounts to Nigerian users. Kehinde emphasized that they set the price of the One suite at N7,500, equivalent to about $6 at that time. This rate was considerably lower compared to the $30-$35 charged in other countries, demonstrating a significant reduction. Even in other African countries like Kenya and South Africa where Zoho operates, the pricing is not as low.
The country manager emphasized that the company prioritizes stability over profits, aiming to support emerging businesses until they can expand and increase investments.
This strategic decision reflects Zoho's commitment to providing value to customers and fostering sustainable growth. Kehinde noted the remarkable customer loyalty and the company's substantial growth, with a significant increase in the user base and revenue surpassing one billion dollars globally.
Zoho's expansion in Nigeria is primarily propelled by Zoho One, the business operating system, and Zoho Workplace, a unified enterprise collaboration platform. Additionally, Zoho CRM Plus, Zoho Books, and Zoho Desk are among the top-selling products in the Nigerian market.
The company's growth in the region is supported by partnerships with SME-focused communities, empowering business owners across Nigeria. Through collaborations like the one with StartupSouth, Zoho aims to enhance its local presence and provide enhanced services to its customers.
Zoho also announced a partnership with StartupSouth to support startups in South and South-East Nigeria as part of the Zoho for Startups initiative. Under this collaboration, startups associated with StartupSouth can benefit from Wallet credits worth ₦ 470,000 and access Zoho Contracts, the contract management solution, free for three months to enhance compliance with the Nigeria Data Protection Law.
The Nigerian Data Protection Law mandates businesses to ensure data security in contracts, comply with NDPA standards, and adhere to guidelines for international data transfer. Non-compliance can lead to loss of consumer trust, legal repercussions, and hefty fines.
Despite challenges posed by currency fluctuations and pricing adjustments, Kehinde reiterated Zoho's long-term commitment to the Nigerian market, emphasizing the company's dedication to providing innovative solutions and reliable services.
