Reality TV star and entrepreneur Leo DaSilva has opened up about how a company he helped raise funds for fell into severe financial trouble due to the economic downturn that followed President Bola Ahmed Tinubu’s rise to power. According to him, the depreciation of the Naira pushed the company into what he described as “generational debt.”
The Impact of Naira Depreciation
Leo DaSilva explained that the company initially secured funding when the exchange rate was more stable. However, after President Tinubu took office, economic reforms, subsidy removal, and currency fluctuations led to a sharp decline in the value of the Naira. This significantly increased the company’s debt burden, as it had taken loans denominated in foreign currency.
How Businesses Are Struggling
Many businesses in Nigeria have faced similar challenges due to the rising cost of imports, inflation, and unstable exchange rates. Companies that borrowed in dollars or other foreign currencies are now struggling to repay their debts, as the value of the Naira continues to weaken. This has led to financial distress, business closures, and layoffs across multiple industries.
Leo DaSilva’s Frustration
The former Big Brother Naija star expressed deep frustration over the situation, emphasizing that businesses and entrepreneurs in Nigeria are finding it increasingly difficult to survive. He noted that government policies must be more favorable to businesses to prevent more companies from falling into similar financial crises.
Public Reactions
Leo’s revelation has sparked conversations on social media, with many Nigerians sharing their own struggles in the current economic climate. Some sympathized with him, while others argued that businesses should be more cautious when borrowing in foreign currencies. The story of the struggling company Leo DaSilva helped fund is a reflection of the larger economic challenges facing Nigeria today. As the Naira continues to depreciate, businesses and individuals alike must find ways to adapt to the economic realities and push for better financial policies that can stabilize the economy.
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Written By Fortune Davidson