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  • Process Optimization in Manufacturing: Where Nigerian Firms Are Losing Millions

    Process Optimization in Manufacturing: Where Nigerian Firms Are Losing Millions

    Nigeria’s manufacturing sector, once a cornerstone of the nation’s economy, is currently facing significant challenges. The sector’s contribution to the Gross Domestic Product (GDP) has declined from 16.04% in Q4 2023 to 12.68% in Q2 2024, marking a 20.95% decrease over six months. This downturn underscores the urgent need for process optimization to enhance efficiency and competitiveness.

    The High Cost of Inefficiency

    Operational inefficiencies are costing Nigerian manufacturing firms millions annually. A study focusing on manufacturing firms in Rivers State revealed a significant positive correlation between process optimization models and operational efficiency. Specifically, real-time optimization and maintenance optimization were found to enhance cost minimization and capacity utilization.

    Moreover, the adoption of Artificial Intelligence (AI) technologies has shown promise in optimizing manufacturing processes. Research indicates a substantial positive correlation between AI adoption and manufacturing efficiency, with AI facilitating enhancements in operational analytics.

    Read more: Navigating Global Challenges Affecting Nigeria’s Manufacturing Industry 

    Key Challenges Hindering Optimization

    Several factors contribute to the inefficiencies plaguing Nigeria’s manufacturing sector:

    The Path Forward

    To reverse the declining trend and unlock the sector’s potential, Nigerian manufacturing firms should consider the following strategies:

    • Invest in Technology: Embrace AI and other advanced technologies to enhance operational analytics, predictive maintenance, and overall efficiency.
    • Enhance Workforce Skills: Implement training programs to upskill employees, ensuring they can effectively utilize new technologies and methodologies.
    • Infrastructure Development: Collaborate with government and private sectors to improve infrastructure, particularly in power supply and logistics.
    • Policy Advocacy: Engage with policymakers to create a more conducive regulatory environment that supports manufacturing growth and innovation.

    By addressing these challenges and embracing process optimization, Nigerian manufacturing firms can significantly reduce losses, improve efficiency, and contribute more robustly to the nation’s economic growth.

    Read more: AI Adoption: Redefining Efficiency and Innovation in Your Business

    Conclusion

    Process optimization in Nigeria’s manufacturing sector is no longer a luxury—it’s a necessity. As firms navigate with outdated systems, rising operational costs, and global competition, the cost of inefficiency continues to climb. By embracing digital tools, upgrading infrastructure, and adopting data-driven strategies, manufacturers can unlock new levels of productivity and profitability.

    At Stransact Chartered Accountants, we support manufacturing businesses in identifying inefficiencies, optimizing operations, and achieving sustainable growth. From strategic audits to digital transformation advisory, our team helps you build a smarter, leaner, and more competitive enterprise.

    Need help optimizing your manufacturing processes? Reach out to us at [email protected] for expert guidance.

  • Third-Party Risk Management: Are Your Vendors Your Weakest Link?

    Third-Party Risk Management: Are Your Vendors Your Weakest Link?

    In today’s dynamic Nigerian business environment, third-party vendors are indispensable to operational efficiency and strategic growth. From logistics providers navigating the complexities of urban transportation to technology partners driving digital transformation, vendors enable organizations to scale and compete effectively. However, increased reliance on external service providers introduces significant risks, ranging from cybersecurity threats and regulatory non-compliance to financial instability and reputational harm. In a market as competitive and regulated as Nigeria’s, such vulnerabilities can have far-reaching consequences.

    Effective Third-Party Risk Management (TPRM) is therefore critical to ensuring business continuity, maintaining stakeholder trust, and achieving compliance with both domestic and international standards. This article examines the unique challenges Nigerian businesses face in managing vendor risks and offers actionable strategies to build a resilient, compliant, and value-driven third-party ecosystem. Importantly, this is not a challenge unique to Nigeria.

    Globally, the TPRM market is experiencing rapid growth—projected to expand from US$6.1 billion in 2024 to US$16.97 billion by 2030, reflecting a Compound Annual Growth Rate (CAGR) of 18.6%. This growth underscores a broader recognition of the critical role TPRM plays in modern enterprise risk management.

    Why Is TPRM Becoming a Big Deal in Nigeria?

    Nigeria’s economy remains oil-driven, with emerging sectors like fintech and agriculture increasingly reliant on third-party vendors to deliver efficiency and scale. With $12.2B in development projects underway (World Bank, 2024), vendors are central to infrastructure and service delivery. However, persistent challenges such as corruption (ranked 154/180 globally), insecurity, and infrastructure deficits amplify third-party risk. Recent reforms, such as fuel subsidy removal and naira devaluation, have raised operating costs. In this context, the pressure to reduce costs may incentivize unethical practices, such as bribery or regulatory shortcuts. These dynamics underscore the critical importance of a robust Third-Party Risk Management (TPRM) framework for organizations seeking to operate with integrity and resilience in a complex and evolving environment.

    A 2024 industry survey indicated that approximately 80% of Nigerian businesses rely on third parties for essential operations, yet around 65% lack comprehensive third-party risk management (TPRM) frameworks. The rapid growth of digital banking, e-commerce, and international trade has heightened vendor-related risks, compounded by Nigeria’s challenges with inconsistent regulatory enforcement, inadequate infrastructure, and rising cybersecurity threats.

    For professional services firms in Nigeria specializing in tax, audit, and regulatory compliance, TPRM is both a challenge and an opportunity to help clients navigate this complex landscape. By addressing local nuances, such as Nigeria’s tax regimes and anti-corruption laws, firms can position themselves as strategic partners in building resilient vendor ecosystems.

    Read more: Compliance as a Tool for Risk Management: Safeguarding Your Business in an Evolving Landscape

    Understanding Common Third-Party Risks in Nigeria

    Knowing the risks that come from your vendors in Nigeria is key to good third-party risk management. Here are the main risks you should watch out for:

    1. Cybersecurity and Data Privacy Risks

    Vendors operating in high-risk sectors such as fintech, logistics, and health tech often introduce significant cybersecurity and data privacy exposure. In Q1 2023, over 82,000 cyberattacks were recorded in Nigeria’s financial sector alone, largely attributed to outdated infrastructure and poor vendor security practices (NIBSS, 2023). Despite mandatory compliance with the Nigeria Data Protection Regulation (NDPR), many SMEs lack the technical capability to meet baseline data protection standards. This creates systemic vulnerabilities for businesses dependent on external service providers.

    A SOC 2 audit is essential for assessing vendor controls against international benchmarks across security, availability, and confidentiality. It enables B2B organizations to validate trust, reduce regulatory exposure, and maintain data integrity in a volatile environment.

    2. Regulatory and Compliance Risks

    Nigeria’s regulatory landscape is complex, with agencies like the Federal Inland Revenue Service (FIRS), Corporate Affairs Commission (CAC), and Economic and Financial Crimes Commission (EFCC) enforcing strict compliance. Vendors failing to remit taxes, such as Value Added Tax (VAT) or Company Income Tax (CIT), can expose businesses to penalties. Vendors may engage in bribery to secure contracts, exposing businesses to penalties. Oil sector vendors often face scrutiny for non-compliance with the Nigerian Extractive Industries Transparency Initiative (NEITI).

    3. Financial and Operational Risks

    Nigeria’s macroeconomic instability driven by persistent naira depreciation and projected inflation of 26.5% in 2025 (IMF, 2025) amplifies vendor financial risk. Insolvency or cash flow constraints among vendors can result in service disruptions, contract breaches, or unfulfilled deliveries. Operational challenges such as unreliable power supply, port congestion, and rising fuel and logistics costs further strain vendor performance. According to the Presidential Enabling Business Environment Council (PEBEC, 2024), Nigeria ranks low on key ease-of-doing-business metrics, with infrastructure inefficiencies significantly inflating operational costs.

    To maintain supply chain stability, organizations must assess vendor financial health, monitor operating environments, and embed financial and operational risk metrics into TPRM frameworks.

    4. Reputation and Ethical Risks

    Nigerian consumers and regulators increasingly prioritize environmental, social, and governance (ESG) standards. Vendors with poor labor practices, such as non-compliance with the National Minimum Wage Act, or environmental violations, like illegal waste disposal, can damage your brand. A 2024 social media backlash against a beverage company in Nigeria, linked to a vendor’s unethical labor practices, highlighted this risk.

    5. Security and Supply Chain Risks

    Nigeria’s security landscape continues to pose material risks to third-party operations, particularly in logistics and raw material sourcing. Insurgencies in the North and local disturbances in the Middle Belt, key regions for agricultural and mineral inputs, frequently disrupt supply chains, leading to delays, increased costs, and operational downtime. In the South, pipeline vandalism and piracy in the Niger Delta have also impacted transportation and manufacturing throughput. Coupled with regulatory enforcement under the Petroleum Industry Act (PIA), businesses face heightened exposure to compliance breaches and sanctions via the NMDPRA.

    To mitigate disruptions and ensure continuity, organizations must implement rigorous vendor due diligence, diversify supply bases, and conduct periodic compliance and security audits.

    Read more: How Cybersecurity and Data Privacy Drive ESG Strategies in Nigerian Businesses

    Why Vendors Pose Strategic Risks in Nigeria?

    Vendors in Nigeria face tough conditions like poor infrastructure, ambiguous regulations, and economic challenges. This makes managing them tricky due to:

    • Limited Vendor Due Diligence Capacity: Many businesses lack the tools, data access, or internal capabilities to assess vendor financial health or compliance with legal and regulatory standards
    • High Informality in Vendor Ecosystem: A significant portion of vendors operate without formal registration or licensing, thereby complicating verification, onboarding, and background checks.
    • Weak Contract Enforcement Mechanisms: Prolonged litigation timelines and inconsistent enforcement in Nigerian courts reduce the effectiveness of contracts as a risk mitigation tool.
    • Vendor Concentration Risk: Overdependence on a single or limited vendor pool increases exposure to service disruptions, especially in volatile sectors like logistics and energy.

    To manage these risks, companies need a special approach that fits Nigeria’s business scene.

    Staying Ahead with a Strong TPRM Framework

    A strong third-party risk management (TPRM) plan helps Nigerian businesses avoid problems with vendors, and here’s how to create one:

    1. Conduct Rigorous Due Diligence: Before onboarding any vendor—and at regular intervals thereafter—assess their financial, legal, and operational standing to reduce exposure:
    • Financial Health: Verify Corporate Affairs Commission (CAC) registration and review SOC 1 reports where applicable.
    • Data Security: Confirm NDPR compliance, presence of internal control frameworks, and request SOC 2 assurance where necessary.
    • Tax Status: Ensure vendors are registered with the Federal Inland Revenue Service (FIRS) and hold valid tax clearance certificates.
    • Regulatory & ESG Compliance: Review adherence to NESREA environmental guidelines and national labour laws.
    • Continuous Monitoring: Reassess after major changes—such as FIRS tax filings, NDPR updates, regulatory reforms, or ESG reporting cycles.

    When in doubt, engage a qualified tax, legal, or audit advisor to support due diligence and compliance efforts.

    1. Draft Robust Contracts
    • Tax Compliance: Ensure vendor tax compliance is up to date, request Make sure vendors pay VAT and Withholding Tax on time, with penalties if they don’t.
    • Data Protection: Vendors must follow Nigeria’s data laws (NDPR) and report any data leaks within 72 hours.
    • Sustainability: Add rules to support Nigeria’s green and ethical banking standards.

    Note: Always work with Nigerian legal experts to make contracts valid and enforceable locally.

    1. Foster a Compliance-First Culture: Finance, HR, and procurement must spot vendor risks like tax evasion and data privacy. HR should check vendors during onboarding, while workshops on anti-corruption laws keep teams aware and compliant.
    1. Prepare for Crisis Management: Crisis events, whether regulatory, operational, or reputational can originate from third-party failures. Embedding crisis management within your TPRM framework helps maintain business continuity.
    • Business Continuity & Disaster Recovery: Develop and regularly test response plans for data breaches, vendor failures, and compliance issues.
    • Regulatory Response: Set clear protocols for managing FIRS penalties or NDPR violations.
    • Supply Chain Resilience: Identify high-risk vendors and regions and maintain pre-vetted backup suppliers.
    • Reputation Management: Align with corporate communications and PR teams to manage external messaging during a crisis. Timely, transparent communication helps preserve brand integrity and stakeholder confidence.

    Crisis preparedness is not an afterthought; it is a strategic imperative. By proactively planning for disruptions, businesses can sustain operations, protect reputation, and maintain regulatory standing even under pressure.

    The Role of Tax, Audit, and Regulatory Professionals in Strengthening TPRM in Nigeria

    Tax, audit, and regulatory experts play a pivotal role in building resilient Third-Party Risk Management (TPRM) frameworks in Nigeria:

    • Tax Compliance Oversight: Ensure vendors meet their obligations under the Federal Inland Revenue Service (FIRS), Lagos State Internal Revenue Service (LIRS), and Petroleum Industry Act (PIA).
    • Independent Assurance: Leverage audit expertise to conduct vendor audits, validate tax remittances, assess financial health, and uncover potential risks.
    • Regulatory Alignment: Navigate complex legal frameworks such as the NDPR, NESREA, EFCC, etc. requirements to ensure full vendor compliance.
    • Strategic People Management: Integrate human capital considerations into vendor oversight, aligning labor practices with Nigerian employment laws and ESG objectives.

    Read more: FinTech: Credit Management as a Pathway to Profitability

    Conclusion

    Vendors remain central to Nigeria’s economic growth, but without adequate governance, they can introduce significant operational, financial, and reputational risks. A well-structured TPRM framework anchored on due diligence, enforceable contracts, digital monitoring tools, and continuous evaluation empowers organizations to mitigate third-party risks while unlocking strategic value.

    By leveraging multidisciplinary expertise across tax, audit, and regulatory domains, Nigerian businesses can build secure, compliant, and future-ready vendor ecosystems that align with evolving expectations around FIRS compliance, data protection (NDPR), and ESG performance.

    At Stransact, we partner with organizations to navigate the intricacies of local compliance requirements. Our integrated approach helps clients align vendor operations with regulatory mandates and organizational goals.

    Reach out to us at [email protected] to learn how we can help you build a resilient third-party management strategy.

  • Renewed Hope Nigeria First Policy: A Strategic Shift Towards Local Content and Economic Sovereignty

    Renewed Hope Nigeria First Policy: A Strategic Shift Towards Local Content and Economic Sovereignty

    In a landmark decision aimed at strengthening Nigeria’s domestic economy and promoting local content, the Federal Executive Council (FEC), presided over by President Bola Tinubu, on Monday 5th of May 2025 approved a sweeping new policy framework tagged the “Renewed Hope Nigeria First Policy”. This policy aims at making government investment directly benefit our people and industries by changing how we spend, how we procure, and how we build our economy.

    Understanding the Nigeria First Policy

    The Nigeria First policy is expected to become the cornerstone of the administration’s economic strategy, especially as the government pushes forward with its industrialization agenda and import-substitution goals.

    The policy comes at a critical time as the International Monetary Fund, IMF, forecasts a gradual slowdown in Nigeria’s economic growth from 3.4% in 2024 to 3.0% in 2025 and further declining to 2.7% in 2026. This downward trajectory underscores the urgent need for structural economic reforms to sustain growth momentum. The Nigeria First policy aims to counteract these declining growth projections by stimulating domestic production and reducing import dependency.

    Read More: Why Nigeria Is Not Classified as a Hyperinflationary Economy

    Key Resolutions and Implementation Strategies

    • Revision and Enforcement of Procurement Guidelines: The Bureau of Public Procurement (BPP) is to revise and enforce procurement rules that prioritize Nigerian-made goods and homegrown solutions across all Ministries, Departments, and Agencies (MDAs).
    • Mandatory Waivers for Foreign Procurements: MDAs are prohibited from procuring foreign goods or services that are available locally without obtaining a written waiver from the BPP. This measure is intended to curb unnecessary foreign expenditures and stimulate domestic production.
    • Inclusion of Technology Transfer Provisions: Where foreign contracts are unavoidable, they must include provisions for technology transfer, local production, or capacity development in Nigeria.

    Implications for Stakeholders

    • For Government Agencies: MDAs must audit existing procurement plans and submit revised versions aligned with the new policy directives. This requires a thorough assessment of current procurement practices and a shift towards sourcing from local suppliers.
    • For Local Industries: The policy presents an opportunity for Nigerian manufacturers and service providers to increase their participation in government contracts. By meeting quality and capacity standards, local businesses can position themselves as preferred suppliers.
    • For Foreign Contractors: International firms seeking government contracts in Nigeria must now incorporate strategies for technology transfer and local capacity development into their proposals. This approach ensures that foreign engagements contribute to the growth of Nigeria’s domestic industries.

    Read More: The New Reality for Nigerian Manufacturers—And How to Compete in It

    Conclusion

    The Nigeria First policy comes amid economic reforms being pushed by the Tinubu administration, including subsidy removals, a new foreign exchange regime, and efforts to restore investor confidence. By making local content central to government spending, the administration hopes to drive job creation, industrial growth, and sustainable economic development.

    While the policy will likely face implementation challenges and resistance from entrenched procurement interests, officials say the administration is determined to enforce compliance at all levels.

    At Stransact Chartered Accountants, we specialize in guiding businesses through complex regulatory landscapes. Our team of experts can help you understand the implications of the Nigeria First Policy and develop strategies to align with its requirements.

     

    📩 Contact us at [email protected] for personalized support.

     

  • Avoid These Payroll Penalties: What Every Nigerian Employer Should Know

    Avoid These Payroll Penalties: What Every Nigerian Employer Should Know

    In Nigeria’s increasingly regulated business environment, payroll compliance is far more than an administrative requirement—it is a legal imperative and a cornerstone of sound corporate governance. Beyond the timely payment of salaries, it encompasses adherence to a complex web of tax laws, pension obligations, and statutory contributions.

    Non-compliance can expose organizations to significant financial penalties, reputational risks, and operational disruptions. For forward-thinking businesses, investing in robust payroll compliance systems is not just about meeting regulatory expectations—it is about protecting long-term value and enabling sustainable growth.

    Why Payroll Compliance Matters

    Payroll compliance ensures that organizations align with Nigeria’s labor, tax, and other employee related regulatory laws. Regulatory bodies such as the Federal Inland Revenue Service (FIRS), States Internal Revenue Services (SIRS), National Pension Commission (PenCom), Nigeria Social Insurance Trust Fund (NSITF), Industrial Training Fund (ITF), and National Housing Fund (NHF) all oversee different components of the payroll landscape. 

    A slip in one area can result in sanctions that could have been easily avoided with proper planning and processes.

    Common Payroll Compliance Triggers for Sanctions

    • Late or Non-Remittance of PAYE Tax: Under the Pay-As-You-Earn (PAYE) scheme, employers are required to deduct personal income tax from employees’ salaries and remit it to the relevant State Internal Revenue Service (SIRS) by the 10th day of the following month. Failure to comply attracts penalties and interest charges.

    Penalty: A 10% penalty on the amount due, plus interest at the prevailing Central Bank of Nigeria (CBN) rate (Personal Income Tax Act, 2011)

    • Non-Remittance of Pension Contributions: Employers with fifteen (15) or more employees must contribute at least 10% of their employees’ monthly emoluments to the Retirement Savings Account, while employees are required to contribute a minimum of 8% to the same account. These contributions must be made not later than seven (7) working days from the day of salary payment.

    Penalty: Non-compliance may attract sanctions from PenCom, including fines and restriction of access to public sector contracts.

    • Failure to Register with NSITF: The Employees’ Compensation Act mandates that all employers must register with the NSITF and make monthly contributions. This fund provides compensation for employees who suffer occupational injury, disease or disability.

    Penalty: Defaulting employers may face legal action, fines, and exclusion from government tenders (Employee Compensation Act, 2010).

    • Inaccurate Payroll Records and Underreporting: Deliberately or mistakenly underreporting employee wages, benefits, or headcount can lead to regulatory scrutiny and heavy penalties. Audits may expose discrepancies between actual wages and what was reported to regulatory bodies.

    Penalty: Range from financial penalties to criminal prosecution in cases of tax evasion.

    • Non-Remittance to Industrial Training Fund (ITF): Employers with twenty-five (25) or more employees are required to contribute 1% of total annual payroll to the ITF not later than 1st April of the following year (Business Facilitation Act, 2022).

    Penalty: Failure to comply can result in a fine and ineligibility for grants and reimbursements from the Fund (The ITF (Amendment) Act, 2011)

    • Misclassification of Workers: Improper classification of employees as independent contractors to avoid tax and pension obligations is another red flag.

    Penalty: This can lead to back payments, interest, and penalties when discovered during audits.

    • Non-Remittance of National Housing Fund (NHF): Employees are required to contribute 2.5% of their monthly income:
      • This contribution is mandatory for employees in the public sector in Nigeria.
      • While it is optional for employees in the private s3ector in Nigeria.

    Penalty: Any employer who defaults, neglects or refuses to make contributions to the Fund as specified by the Act shall be liable to fine or imprisonment (National Housing Fund Act)

    How to Avoid Payroll Compliance Pitfalls

    • Stay Informed and Updated: Regulations change frequently. Subscribe to updates from regulatory bodies or work with compliance professionals to stay current.
    • Automate Payroll Processes: Use payroll software that is updated with current tax rates and deadlines. Automation reduces the risk of human error and missed remittances.
    • Conduct Regular Internal Audits: Quarterly or biannual payroll audits can help detect and fix issues before they escalate.
    • Engage Professional Advisors: Working with tax and payroll compliance experts like Stransact ensures that your payroll processes align with local laws and best practices.
    • Properly Document Employee Contracts: Ensure all employment terms are legally documented and that payroll records reflect the accurate compensation and benefits as stipulated.

    Read more: Are You Being Over-Taxed? How to Spot Errors in Your PAYE Deductions

    Conclusion

    Payroll compliance in Nigeria is a non-negotiable responsibility for businesses. While the regulatory landscape may be complex, the consequences of non-compliance ranging from fines to business disruption are far more costly. By understanding the common triggers for sanctions and implementing proactive compliance strategies, businesses can safeguard themselves against unnecessary risks.

    At Stransact Chartered Accountants, we help organizations stay ahead of compliance requirements. Our dedicated professionals provide tailored payroll and tax advisory services, helping businesses avoid penalties, stay compliant, and focus on growth.

    📩 Need help navigating payroll compliance? Reach out to us at [email protected] for expert guidance.

  • 5 Essential Business Reads for the Weekend

    5 Essential Business Reads for the Weekend

    At Stransact, we stay tuned to the pulse of business, policy, and industry trends. Each week, we bring you carefully curated insights to keep you informed, help you think ahead, and lead with confidence.

    1. The New Reality for Nigerian Manufacturers – And How to Compete in It

    Nigeria’s manufacturers are adapting to inflation, FX pressures, and shifting consumer demand. What does it take to survive—and thrive—today?
    Discover actionable strategies for resilience, including supply chain reengineering, tax planning, and financial transparency.
    👉 Read the article

    2. Cybersecurity as a Boardroom Priority

    With cyber threats escalating, boards can no longer treat security as a tech issue alone.
    This piece explains why cybersecurity must be a strategic risk priority—and how boards can play a proactive governance role.
    👉 Read the article

    3. Financial Reporting in Nigeria: The ICFR Imperative

    Robust Internal Controls over Financial Reporting (ICFR) are more than a compliance checklist—they’re essential for trust and transparency.
    Explore the practical benefits of ICFR and why Nigerian companies should embrace them, especially ahead of regulatory reforms.
    👉 Read the article

    4. Ungazetted Regulations: Legal Grey Areas You Shouldn’t Ignore

    Can a policy be enforced if it hasn’t been officially gazetted?
    This legal insight breaks down the implications of implementing laws or directives not yet published in Nigeria’s official gazette.
    👉 Read the article

    5. Nigeria’s Investment & Securities Act of 2025: A Capital Market Milestone

    The newly passed ISA 2025 ushers in major reforms for market operators, investors, and regulators.
    Get a concise breakdown of what’s changed—and what it means for capital market development.
    👉 Read the article

     

    Follow Stransact for weekly insights on the future of business, finance, and regulation in Nigeria.

     

  • The New Reality for Nigerian Manufacturers—And How to Compete in It

    The New Reality for Nigerian Manufacturers—And How to Compete in It

    Nigeria’s headline inflation raced to 34.8% in December 2024—its highest level since 1996—driven largely by food prices and energy shocks. Meanwhile, our once-booming manufacturing sector has seen growth plummet from 38.06% year-on-year in Q4 2023 to a mere 2.92% in Q4 2024. And despite countless reforms, the nation is still behind at 131st out of 190 economies in the World Bank’s Doing Business ranking.

    Erratic power supply continues to force industrial plants to rely on diesel generators, now costing up to US$0.50/kWh—over six times the theoretical grid tariff of US$0.08/kWh. This makes it even more economical to import products like cement rather than produce them locally. CEOs are grappling with balance sheets where escalating input costs erode margins rapidly. Foreign exchange losses are mounting, and each unplanned outage further undermines profitability.

    If you’re a board member or MD reading this, know this: unless you tackle these inefficiencies now, your factory could be the next headline in an exposé—and your bottom line will continue to be exposed to volatility.

    The Hidden Drain: Where Money Disappears

    1. Energy Shortages

    What’s happening: Grid power meets barely 4,000 MW demand; the rest comes from generators. Most firms pay US$0.40–0.46/kWh for diesel backup, compared to US$0.08/kWh on paper. For a mid-sized plant consuming 500,000 kWh monthly, that’s an extra US$160,000 in fuel costs alone—before factoring in maintenance and spares.

    Impact on your P&L: Energy costs can consume up to 30–40% of operating expenses, squeezing working capital and forcing product price hikes that erode competitiveness.

    2. Foreign Exchange Volatility

    What’s happening: The naira’s poor liquidity and steep devaluations erased ₦792 billion from the books of 16 leading manufacturers in 2023–24 alone. Many firms lack robust hedging strategies, so raw-material imports at N1,650/US$ (parallel market) can suddenly cost N2,000/US$ overnight.

    Impact on your P&L: FX losses feed directly into cost of goods sold, creating unpredictable margins and choking investment plans.

    3. Supply-Chain Gaps & Inventory Gluts

    What’s happening: Leading FMCGs saw input costs jump 121% in H1 2024, largely due to FX pass-through and logistical snarls. Meanwhile, unsold inventory rose by 43% in early 2024, tying up ₦1.24 trillion in working capital.

    Impact on your P&L: Excess inventory drives warehousing costs, idle cash, and write-downs, while stock-outs on critical SKUs dent market share.

    4. Policy Inconsistency & Regulatory Delays

    What’s happening: From sudden export bans to abrupt tariff changes, shifting policies force manufacturers into perpetual catch-up mode. Customs clearance can drag 5–10 days, double regional benchmarks, forcing many to pay demurrage and storage fees.

    Impact on your P&L: Unplanned expenses, project delays, and lost customer trust as orders slip.

    Practical Strategies for Reversal

    Targeted, low-risk pilots can arrest these losses and lay the foundation for scalable improvement. Each approach below has been successfully adopted within similar emerging-market contexts and is ready for rapid adaptation to Nigerian conditions:

    Hybrid Energy Micro-Grids with Smart Management

    What to do: Combine solar PV, battery storage, and gas-fired generators to cut diesel consumption by up to 30% and guarantee uptime when the grid fails.
    How we help:

    • Technology Advisory designs and oversees the micro-grid, integrates smart monitoring, and automates controls.
    • Audit & Assurance establishes baseline energy KPIs, tracks actual savings, and verifies performance.
    • Tax Compliance identifies available capital allowance incentives and optimises gas-to-power tax treatment.

    Digital Supply-Chain Enablement

    What to do: Deploy cloud-based inventory platforms with real-time demand forecasting and automated replenishment to unlock working capital.
    How we help:

    • Technology Advisory manages rapid system deployment, ERP integration, and user training.
    • Audit & Assurance audits stock accuracy, tightens procurement and warehouse controls, and builds KPI dashboards.
    • Tax Compliance optimises customs classifications, VAT recovery, and local-sourcing incentives to cut import duties and FX risk.

    Continuous Skills Development & Compliance

    What to do: Institute monthly “best-practice” forums, targeted training in quality-control and maintenance, and simple digital compliance-tracking tools.
    How we help:

    • People & Regulatory Services design curricula, deliver workshops, and liaise with NAFDAC, NERC, and Customs.
    • Audit & Assurance conducts mock audits, hazard assessments, and gap-closure reviews to ensure zero major findings.

    Policy Engagement and Advocacy

    What to do: Convene industry roundtables with government and regulators to secure practical reforms, such as 24-hour customs windows and predictable tariff regimes.
    How we help:

    Financial Strategies

    What to do: Implement layered FX-hedging programmes and tap development-finance or public-private funding for capex projects.
    How we help:

    • Audit & Assurance validates financial models, business cases, and ROI projections.

    Read More: Strengthening Nigeria’s Manufacturing Industry with Independent Internal Audits

    Conclusion: Charting a New Course for Nigerian Manufacturing

    The margin for error in today’s manufacturing landscape is slimmer than ever. Escalating input costs, currency volatility, and shifting regulatory requirements demand more than incremental improvements—they require a strategic, integrated response. By deploying rigorously tested, context-specific interventions and partnering with advisors who bring both global best practices and deep local experience, manufacturers can not only arrest profit erosion but also build the foundations for sustained, scalable growth.

    At Stransact, we’ve partnered with leading multinationals and fast-growing local champions to deliver precisely this kind of transformation. Our Audit & Assurance teams provide clear, data-driven diagnostics to reveal hidden inefficiencies and compliance gaps. Our Tax specialists optimize fiscal incentives and manage liabilities to improve cash flow. Through Technology Advisory, we implement digital platforms that free up working capital and enhance operational resilience. And our People & Regulatory Services ensure your teams are equipped, compliant, and ready to sustain continuous improvement.

    Let us help you turn today’s disruptions into tomorrow’s growth engine. Contact us for a confidential consultation and a custom pilot design. Together, we will lead Nigeria’s manufacturing renaissance—transforming complexity into clarity and delivering measurable, long-term value.

     

  • The Investments and Securities Act of 2025: A Significant Milestone in Nigeria’s Capital Market Development

    The Investments and Securities Act of 2025: A Significant Milestone in Nigeria’s Capital Market Development

    The evolution of Nigeria’s capital market regulation is a testament to the nation’s commitment to a robust and transparent financial ecosystem. This journey, which began several decades ago, has been marked by significant legislative milestones that have shaped not only the current investment landscape but also how our capital market works.

    Early Beginnings: 1962–1979

    The Nigerian government took its first step in 1962 by establishing an adhoc consultative and advisory body known as the Capital Issues Committee under the Central Bank of Nigeria. This committee was tasked with overseeing capital market activities, coordinating the orderly issuance of securities and maintaining investor confidence.

    Recognizing the need for a more structured approach, the committee was transformed into the Securities and Exchange Commission (SEC) in 1979 through the enactment of SEC Decree No. 71 of 1979. This decree provided SEC with statutory backing and also positioned it as the primary regulator of Nigeria’s burgeoning capital market. Nine (9) years after, the establishment of the Securities and Exchange Commission, the enabling law, Decree No. 7 of 1979, was re-enacted as SEC Decree No. 29 of 1988 with additional provisions to address observed lapses in the previous arrangement and to enable the Commission pursue its functions more effectively.

    The 1990s: Addressing Emerging Challenges

    As Nigeria’s economy expanded, the capital market faced new challenges that the existing regulatory framework struggled to address. It became clear that a reform was necessary. The government in response introduced the Investment and Securities Act (ISA) No. 45 of 1999. This Act which repealed the SEC Act of 1998 aimed to modernize the regulatory environment, granting SEC enhanced powers to oversee and regulate the capital market more effectively. A notable innovation was the establishment of the Investment and Securities Tribunal (IST), which was designed to expedite the resolution of disputes arising within the capital market, thereby enhancing investor protection and market integrity.

    The 2000s: Comprehensive Reforms with ISA 2007

    Building upon the foundation laid in the previous decade, the Investment and Securities Act was further reviewed and amended as the Investment and Securities Act (ISA) of 2007 to address the evolving complexities of the capital market. This legislation introduced several key reforms which enhanced SEC regulatory powers, implemented provisions to safeguard investors against malpractices and encourage the introduction of new Financial Instruments as well as diversifying investment opportunities.

    Read More: From Traditional to Digital: How Financial Services Can Thrive in the Era of Fintech

    ISA 2025: A Comprehensive Overhaul for a Digital and Global Age

    In March 2025, Nigeria took a bold step forward as President Bola Ahmed Tinubu signed the Investments and Securities Act 2025 into law. This act replaces the ISA 2007 and reflects a forward-looking strategy that aligns domestic capital markets with global trends—particularly around digitization, sustainability, and inclusive finance.

    Here are the key highlights:

    1. Recognition and Regulation of Digital Assets

    A pivotal aspect of the ISA 2025 is the formal recognition of virtual and digital assets as securities. This inclusion brings Virtual Asset Service Providers (VASPs), Digital Assets Offering Platforms (DAOPs), and Digital Assets Exchanges under the regulatory oversight of the Securities and Exchange Commission (SEC). By integrating digital assets into the formal financial system, the Act seeks to foster innovation while ensuring robust investor protection.

    1. Criminalization of Unlawful Investment Schemes

    In response to the proliferation of Ponzi schemes and fraudulent investment operations, the ISA 2025 prescribes severe penalties, including substantial fines and imprisonment, for individuals and entities involved in these schemes.

    The Act also imposes stronger penalties for insider trading, market manipulation, and other forms of market misconduct. These measures aim to ensure fairness and protect investors from unethical practices.

    1. Enhanced Regulatory Powers of the SEC

    The Act significantly boosts SEC authority, granting it the powers to obtain electronic records, including phone and internet data, to aid its investigations and enforcement actions. This will further strengthen the Commission’s capacity to detect, monitor and manage systemic risks within the capital market.

    1. Regulation of Commodities Exchanges and Warehouse Receipts

    The ISA 2025 introduces a comprehensive framework for the regulation of commodities exchanges and warehouse receipts. This measure is expected to drive growth in agriculture, mining, and other commodity-dependent industries by promoting structured financing mechanisms and reducing risks for market participants.

    1. Facilitation of Sub-National Fundraising

    The Act expands on the categories of issuers and entities permitted to raise funds from the capital market, including sub-national bodies such as state and local governments. This provision enhances their flexibility to access capital for developmental projects, subject to SEC approval and oversight.

    1. Introduction of Legal Entity Identifiers (LEIs)

    To enhance transparency and traceability in securities transactions, the ISA 2025 mandates the use of Legal Entity Identifiers (LEIs) by all market participants. This global standard facilitates the identification of legal entities participating in financial transactions, thereby improving risk management and regulatory compliance.

    1. Introduction of Enhanced Investor Protection Measures

    The ISA 2025 reinforces investors’ protection by introducing more stringent disclosure requirements. Companies are now required to provide detailed information on their financial performance, governance, and sustainability practices, thereby promoting enhanced transparency across the capital market.

    1. Incentivizing Sustainable Investments

    The Act promotes investment in environmentally and socially responsible projects by providing tax incentives for green bonds and other sustainable financial instruments. This initiative aligns Nigeria’s capital markets with international trends in sustainable finance.

    1. Support for Alternative Financing Mechanisms

    ISA 2025 introduces a regulatory framework for alternative investments, such as private equity, venture capital, and crowdfunding platforms. This will provide startups and businesses with access to diverse sources of funding and help improve entrepreneurship.

    1. Strengthened Market Surveillance and Risk Management

    The SEC is equipped with enhanced surveillance capabilities, including the ability to monitor market activities in real time. This enables the prompt detection and response to potential risks and instances of market manipulation, thereby strengthening overall market stability.

    1. Support for Cross-Border Securities Offerings

    The ISA 2025 enables cross-border securities offerings, providing Nigerian companies with greater access to international capital markets while ensuring adherence to both domestic and global regulatory standards. This development enhances Nigeria’s attractiveness to foreign investors and strengthens its position in the global investment landscape.

    1. Mandatory Corporate Governance Standards

    The Act mandates that companies, especially fintechs and digital platforms, implement robust corporate governance codes. This requirement promotes better management practices, fostering increased trust and confidence among investors and other stakeholders in the market.

    Read More: Strengthening Financial Transparency in NGOs: Best Practices for Audit and Compliance

    What This Means for Market Participants

    Investors

    The ISA 2025 significantly strengthens investor protection by criminalizing fraudulent activities like Ponzi schemes and imposing harsh penalties on those involved. It also enforces stricter disclosure requirements, ensuring companies provide clearer and more detailed information, which enhances transparency and accountability. The introduction of Legal Entity Identifiers (LEIs) further improves market transparency, allowing investors to easily track and identify market participants, thus reducing the risk of fraud.

    In addition to these measures, the Act regulates digital assets, introducing robust safeguards for financial transactions. These reforms are aimed at increasing investor confidence in the integrity and stability of the market, ensuring a more secure environment for investment, and fostering trust among market participants.

    Capital Market Operators

    The ISA 2025 expands opportunities for capital market operators, allowing them to participate in digital assets, commodities exchanges, and alternative investments. It also imposes stricter compliance requirements, including enhanced reporting, anti-money laundering controls, and stronger corporate governance. Also, the SEC gains broader oversight powers, including real-time monitoring of market activities, to prevent manipulation and ensure transparency

    Regulators (Securities and Exchange Commission – SEC)

    The ISA 2025 enhances the SEC’s powers, allowing it to regulate digital assets, commodities exchanges, and suspend trading during financial instability. It also strengthens enforcement by enabling access to electronic records for investigations. With provisions like Legal Entity Identifiers (LEIs) and cross-border offerings, the SEC is better positioned to integrate Nigeria into global capital markets.

    Financial Institutions (Banks, Investment Firms, etc.)

    The ISA 2025 requires financial institutions dealing in securities, investments, or digital assets to adjust their product offerings to comply with new regulations, including those for digital securities and blockchain-based products. These institutions must also adhere to stricter reporting requirements, ensuring better accountability to regulators and investors.

    Digital Asset Providers (VASPs, DAOs, and Exchanges)

    The ISA 2025 formally recognizes digital asset providers and exchanges as market participants, requiring them to operate under SEC supervision to ensure compliance with market standards. These entities must implement measures to protect investors, including robust security protocols, transparent trading practices, and adherence to anti-money laundering laws. They will also face penalties for misconduct, such as failing to register with the SEC or engage in fraudulent activities, and will be held accountable for not disclosing key information to investors.

    Legal and Compliance Professionals

    The ISA 2025 will drive a greater demand for legal and compliance professionals due to new requirements for corporate governance, disclosure, and anti-money laundering practices. These professionals will be essential in advising companies on navigating the complexities of the updated regulatory environment, including the regulation of digital assets, commodities exchanges, and cross-border offerings.

    Tax Authorities

    The ISA 2025’s inclusion of digital assets will require tax authorities to establish clear tax guidelines for transactions involving digital currencies and tokens. Additionally, with the SEC’s enhanced powers to track electronic records, tax authorities will gain access to more detailed financial transaction data, improving tax compliance and enforcement.

    Read More: Cybersecurity as a Boardroom Priority: Moving from IT to Strategic Risk

    A Defining Moment for Nigeria’s Capital Market

    The evolution of Nigeria’s capital market regulations, culminating in the passage of the Investments and Securities Act (ISA) 2025, represents a critical milestone in aligning the country’s financial ecosystem with global standards. By introducing groundbreaking provisions such as the regulation of digital assets, enhanced investor protection, and expanded regulatory powers for the Securities and Exchange Commission, the ISA 2025 significantly improves market transparency, accountability, and stability. These reforms provide vast opportunities for investors, market operators, and regulators, while also addressing emerging challenges such as fraud, market manipulation, and the need for sustainable investment practices. As Nigeria continues to position itself as an attractive destination for global capital, the ISA 2025 lays a solid foundation for a more inclusive, secure, and competitive capital market.

  • Cybersecurity as a Boardroom Priority: Moving from IT to Strategic Risk

    Cybersecurity as a Boardroom Priority: Moving from IT to Strategic Risk

    In 2025, cybersecurity is no longer just a line item for the IT department — it’s a central business issue that demands attention at the highest levels of leadership. As digital transformation accelerates, and with AI rapidly changing the threat landscape, cybersecurity has become one of the most pressing strategic risks facing modern organizations.

    Yet, in boardrooms across Nigeria and beyond, cybersecurity remains underrepresented. In fact, fewer than 20% of global corporate boards have a cybersecurity expert, according to a 2023 report by Gartner. Many board members still view cyber threats as technical issues — the domain of firewalls, antivirus software, and IT personnel — rather than what they truly are: existential threats to business continuity, brand trust, and shareholder value.

     

    The Nigerian Cybercrime Crisis

    The scale of financial losses due to cyberattacks in Nigeria is alarming. According to the Financial Institutions Training Centre (FITC), Nigerian banks lost a staggering ₦53.4 billion to cybercriminal activities in just the first nine months of 2024 — a 468% increase from ₦9.4 billion during the same period in 2023.

    Even more shocking, Q2 of 2024 alone accounted for ₦42.8 billion in losses, a meteoric rise from ₦468.4 million recorded in Q1. These figures underscore the growing sophistication and success of cybercriminal operations targeting financial institutions.

    And the impact goes beyond banking.

    According to Nigeria’s Federal Government, the country loses an estimated $250 billion annually to cybercrime — affecting sectors ranging from oil & gas and telecoms to healthcare, logistics, and retail. This is not just a tech issue. This is an economic crisis.

    Read More: How Cybersecurity and Data Privacy Drive ESG Strategies in Nigerian Businesses

    The Problem You Know: Data Breaches and Compliance Chaos

    Executives are already familiar with the usual suspects:

    • Data breaches that compromise customer trust.
    • Compliance pressures from local and global regulations like NDPA, and GDPR.
    • Ransomware attacks that cripple operations and demand millions in cryptocurrency.
    • Third-party risks from vendors with poor security practices.

    What may not be as obvious is just how much these risks have evolved — and how unprepared many companies still are.

     

    The Problems You Might Not Know (Yet)

    1. AI-Powered Threats Are Redefining Risk

    Artificial intelligence is a double-edged sword. While organizations embrace AI for efficiency, cybercriminals are using the same tools to launch hyper-personalized phishing attacks, deepfake social engineering, and automated vulnerability scanning. The attack surface has expanded exponentially: cloud environments, APIs, third-party vendors, IoT devices, and remote teams all present new vulnerabilities.

    1. Cyberattacks Are Increasing in Frequency and Cost

    According to IBM’s 2023 Cost of a Data Breach Report:

    1. Cyber Insurance Is No Longer a Safety Net

    The surge in cyber incidents has made insurers more selective, with stricter conditions and higher premiums. Policies now require demonstrable cyber hygiene — meaning without proper governance, your claim could be denied.

    1. Board Accountability Is Increasing

    Regulators are no longer tolerating ignorance. In the U.S., the SEC has introduced rules mandating cyber risk disclosures. Locally, Nigerian regulators like the CBN, SEC, and NCC have issued industry-specific cybersecurity frameworks, and enforcement is intensifying.

    Boards and C-suites can no longer claim plausible deniability.

    Read More: Are You Losing Millions to Software You Don’t Even Own? Here’s What to Do Instead

    Why You Must Lead the Charge — Not Delegate It

    Cybersecurity is now a strategic risk. It requires governance, investment, and visibility at the top level. And most importantly, it requires proactiveness, not reactivity.

    Waiting for a breach to happen before taking cybersecurity seriously is like insuring a burning building.

    As a top executive, your role includes:

    • Championing a cyber-aware culture from the top down.
    • Mandating regular cyber risk assessments and scenario planning.
    • Integrating cybersecurity into enterprise risk management (ERM) frameworks.
    • Ensuring cybersecurity metrics and KPIs are part of board reporting.
    • Investing in zero-trust architecture, AI threat detection, and third-party risk oversight.

     

    The Way Forward: From Awareness to Agility

    To stay ahead, boards and executive teams must:

    Elevate cybersecurity to board-level oversight

    Establish a board subcommittee or appoint a cybersecurity liaison to ensure visibility.

    Adopt a cybersecurity maturity model

    Use internationally recognized frameworks like NIST, CIS Controls, or ISO 27001 to assess gaps and improve posture.

    Invest in people and capabilities

    Cyber resilience is not just about tech — it’s about people. Train employees, hire CISOs, and build incident response plans that are tested regularly.

    Anticipate tomorrow’s threats

    With generative AI and quantum computing on the horizon, boards must work with their tech leaders to anticipate and prepare for next-generation risks.

    Partner with trusted advisors

    Engage with professional services firms like Stransact, with global capabilities and local insight, to assess, design, and implement enterprise-wide cyber strategies.

    Cybersecurity is Everyone’s Business — But It Starts with You

    The cyber risk landscape is expanding faster than many boards can keep up with. From AI-driven scams to geopolitical cyber warfare, the threats are diverse, sophisticated, and ever-evolving.

    You wouldn’t leave financial controls to chance. You wouldn’t ignore operational risk. So why treat cybersecurity as anything less than a core strategic concern?

    Proactive leadership from the top is the only way to build cyber resilience, maintain stakeholder trust, and secure the future of your enterprise.

    Cybersecurity is no longer an IT issue. It’s a boardroom issue. And it’s your move

     

    Let’s Talk Strategy

    If you’re ready to assess your current cybersecurity maturity or elevate your board’s awareness, Stransact can help. Reach out to us at [email protected] to schedule a board-level cyber risk consultation.

  • Strengthening Financial Transparency in NGOs: Best Practices for Audit and Compliance

    Strengthening Financial Transparency in NGOs: Best Practices for Audit and Compliance

    Financial mismanagement in NGOs is more than just an internal issue—it has real-world consequences. A 2023 report by the International NGO Accountability Taskforce revealed that 65% of donor funding disputes stem from poor financial transparency, leading to funding losses exceeding $1.2 billion annually.

    Additionally, non-compliance with international audit standards has led to regulatory fines and legal sanctions, crippling many organizations.

    The takeaway? Poor financial oversight can cost NGOs their credibility, funding, and, ultimately, their mission impact.

    In our nearly two decades of advising NGOs, we’ve seen firsthand how robust financial governance can transform organizations from struggling entities to models of accountability and efficiency. This article outlines essential strategies that top decision-makers must implement to audit-proof their organizations and ensure long-term sustainability.

    Why Financial Transparency is Non-Negotiable for NGOs

    NGOs operate in a high-stakes financial ecosystem where accountability is paramount. Unlike private enterprises, NGOs depend heavily on external funding, making financial transparency a make-or-break factor for survival. Strong financial governance achieves the following:

    Read More: Risk-Based Auditing for Nigerian Non-Profit Organisations: Enhancing Accountability and Effectiveness

    The Four Pillars of Financial Transparency

    To establish bulletproof financial governance, NGOs must focus on three critical areas:

    Understanding Audit Scope and Requirements

    Audit preparation begins with a thorough understanding of the type of audit your organization is subject to:

    • Public sector audits include financial, compliance, and performance audits, each with distinct objectives.
    • Nonprofits handling donor-restricted funds must comply with financial statement audits, Single Audits (for U.S. federal funding recipients), and specific grantor-mandated audits.
    • International NGOs may need to comply with multi-jurisdictional standards such as IFRS, IPSAS, or local statutory reporting frameworks.

    Developing Robust Internal Control Systems

    Strong internal controls mitigate risks associated with fraud, fund misuse, and financial inefficiencies. NGOs must implement:

    • Segregation of Duties: No single individual should have control over financial transactions end-to-end.
    • Multi-Tiered Approvals: Large expenditures must require approvals from multiple levels of leadership.
    • Fund Management Protocols: Clear documentation of donor-restricted funds to prevent misallocation.
    • Conflict of Interest Policies: Board members and senior leaders must disclose financial interests and recuse themselves from related decision-making.
    • Advanced NGOs leverage cloud-based ERP solutions (e.g., NetSuite, Microsoft Dynamics) to automate financial controls, ensuring real-time oversight and reducing human error.

    Creating a Comprehensive Audit Preparation Plan

    Being proactive about audit readiness significantly reduces stress and improves compliance. NGOs should:

    • Establish a detailed audit timeline—starting six months before the audit—to prepare key documentation.
    • Ensure financial statements undergo pre-audit internal reviews to identify inconsistencies.
    • Train staff on audit expectations to streamline responses to auditor inquiries.
    • Conduct regular internal audits before external audits to flag and correct discrepancies early.

    Ethical Conduct & Whistleblowing

    • Implement a code of ethics and a confidential whistleblowing mechanism.
    • Protect whistleblowers from retaliation.

    Ethical conduct builds a strong organizational culture.

    Practical Steps to Strengthen Transparency

    Beyond compliance and audit readiness, NGOs should take the following transparency measures:

    • Publish Annual Financial Reports: Make financial records easily accessible on the organization’s website, including funding sources, expenditures, assets, and liabilities.
    • Subject Financial Reports to Independent Audits: Engage reputable external auditors and publicly disclose audit findings.
    • Disclose Executive Compensation: Provide transparent reporting on the salaries of top leadership.
    • Implement a Whistleblower Policy: Establish anonymous channels for reporting financial irregularities and ensure prompt investigation and action.
    • Comply with Local Regulatory Requirements: NGOs must register and obtain necessary approvals in all jurisdictions of operation.

    The Role of Expert Advisory in Strengthening NGO Financial Governance

    Over the years, we have partnered with both local and international NGOs to strengthen their financial management frameworks. Our work has focused on ensuring compliance with local and international regulatory requirements, improving internal controls, and helping NGOs maintain donor confidence while staying resilient in their mission.

    By implementing tailored financial strategies, NGOs have successfully enhanced operational efficiency and accountability, positioning themselves as trustworthy entities in the sector.

    Read More: AI Adoption: Redefining Efficiency and Innovation in Your Business

    Conclusion: The Path to Financial Integrity

    In an era where financial scrutiny is at an all-time high, NGOs cannot afford to overlook financial transparency. The risk of donor mistrust, legal consequences, and operational inefficiencies is too great.

    However, by adopting strong audit frameworks, internal controls, and compliance strategies, NGOs can transform audits from stressful obligations into valuable opportunities for improvement.

    We encourage all NGOs to prioritise financial transparency and implement these best practices.

    For NGOs looking to enhance financial transparency and compliance, expert guidance is key. If you have any questions or need further insights on financial best practices, feel free to contact us via [email protected]—we are always available to help organisations navigate financial complexities and build a foundation of trust and accountability.

  • Are You Losing Millions to Software You Don’t Even Own? Here’s What to Do Instead

    Are You Losing Millions to Software You Don’t Even Own? Here’s What to Do Instead

    For many large enterprises, off-the-shelf software seems like the most convenient choice—fast to deploy, pre-packaged features, and a vendor taking care of updates.

    But here’s the reality: you’re paying a premium for something you don’t own.

    Every year, businesses spend millions on recurring licensing fees, mandatory upgrades, and hidden costs associated with software that wasn’t designed for them. Even worse, your business-critical operations are dependent on third-party platforms—which can change policies, raise prices, or even shut down, leaving you stranded.

    So the real question is: how much is your software really costing you? And more importantly, what can you do about it?

    The Hidden Cost of Off-the-Shelf Software

    You’re Paying for Features You Don’t Need

    Most enterprise software solutions bundle features into expensive plans—forcing you to pay for tools that your business may never use.

    • Need custom reporting? That’s an extra fee.
    • Need specific compliance settings? Upgrade to a premium plan.
    • Need more user licenses? Your costs just doubled.

    Over time, these unnecessary expenses drain your budget without adding real value to your business.

    Example: Schneider Electric consolidated multiple third-party software tools into a custom-built platform, saving millions in unnecessary licensing fees.

    You’re Locked into Expensive Subscription Fees Forever

    At first, subscription software seems affordable—until you realize you’re renting a tool you’ll never own.

    With each passing year, the cost keeps rising, and since the software isn’t yours, you have no control over pricing, policy changes, or service shutdowns.

    Example: HSBC, operating across multiple continents, built its own custom risk management platform instead of relying on third-party software—cutting millions in recurring subscription costs.

    💡 What’s the alternative? A custom software solution means you invest once, own the platform outright, and eliminate unpredictable annual fees.

    You Have No Control Over Compliance & Security Risks

    For multinational enterprises, compliance is non-negotiable. Payroll regulations, data protection laws, and industry compliance constantly evolve, but third-party software providers are slow to adapt.

    • Data stored externally means you’re at the mercy of their security standards.
    • Regulatory non-compliance can lead to penalties if the software doesn’t meet local laws.
    • Vendor lock-in prevents flexibility if you need to adjust your software to new legal requirements.

    Example: Maersk, the world’s largest shipping company, suffered a massive cyberattack that crippled its supply chain. The lesson? Enterprises with full control over their systems recover faster and protect their data more effectively.

    💡 What’s the alternative? Custom software ensures full compliance, enhanced security, and total data ownership.

    You’re Stuck with Software That Won’t Scale With You

    As enterprises grow, so do their operational complexities. But off-the-shelf software isn’t designed for long-term scalability.

    • Want to expand functionality? You’ll need third-party add-ons.
    • Need custom integrations? Good luck making them work seamlessly.
    • Trying to adjust workflows? You’ll have to work around software limitations.

    Example: Airbus, a global aerospace leader, abandoned generic ERP solutions in favor of a custom-built enterprise system that scaled seamlessly across its manufacturing and supply chain operations.

    💡 What’s the alternative? Custom software is built to grow with your business, not against it.

    Case Study: How a Multinational Saved Millions with Custom Payroll Software

    A leading manufacturing multinational in Nigeria was spending millions annually on third-party payroll software, facing:

    • High licensing fees
    • Security risks from external data storage
    • Compliance gaps with evolving Nigerian tax laws
    • Inflexible payroll structures

    By switching to a custom-built payroll solution, they eliminated recurring costs, enhanced security, ensured full compliance, and optimized efficiency.

    The result? Millions saved annually and a payroll system built for their needs.

    🔗 See the full transformation— CLICK HERE

    What Should Enterprises Do Instead? Take Back Control.

    The real cost of software isn’t just in the licensing fees—it’s in the lack of control, security, and scalability.

    Here’s what enterprises should consider:

    Audit your current software costs—Are you paying for features you don’t need?
    Assess compliance risks—Are you meeting local and global regulations?
    Evaluate long-term scalability—Will your current software grow with your business?
    Compare costs—Are your subscription fees higher than the cost of owning a custom solution?

    Many global enterprises have already made the shift. The question is: will you?

    Custom Software is an Investment, Not an Expense

    For enterprises handling large-scale operations, payroll, finance, supply chain management, and compliance-heavy processes, off-the-shelf software will never be enough.

    With Stransact’s technology services, you get:
    🔹 Tailored software built for your business needs
    🔹 Cost-effective alternatives to overpriced third-party tools
    🔹 Full compliance with industry and regional regulations
    🔹 Long-term savings by eliminating unnecessary subscriptions

    Are you ready to stop losing millions on software you don’t own? Let’s discuss how a custom solution can cut costs, improve compliance, and give you total control.