Leo DaSilva Speaks Out: The Financial Struggles Facing Nigerian Businesses Today

Entrepreneur Leo DaSilva Opens Up About Economic Hardships Under Bola Tinubu’s Leadership

Let’s face it—running a business in Nigeria has always been tough, but according to reality TV star and entrepreneur Leo DaSilva, things have gotten even more complicated since President Bola Tinubu took the helm. In a candid post on X, DaSilva shared his frustrations about the severe financial challenges that a company he helped raise funds for is now facing. The root cause? The sharp depreciation of the naira and skyrocketing interest rates under the current administration.

DaSilva didn’t mince words when he explained how these economic shifts have left the company drowning in what he calls “generational debt.” To put it into perspective, he compared the company’s financial health during former President Muhammadu Buhari’s term to its current state under Tinubu. The contrast, he argued, is staggering.

“Let me walk you through an example,” DaSilva wrote, emphasizing that his intention wasn’t to take sides but rather to shed light on the realities businesses are dealing with. “Not supporting anyone here, but just giving some context to the challenges we’re facing.”

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The Turning Point: A $10 Million Loan That Became a Nightmare

Here’s where things get interesting. Back in 2019, DaSilva’s company secured a $10 million international loan at an interest rate of 5%. At the time, it seemed like a smart move—a way to fuel growth and innovation. But fast forward to today, and the picture looks very different. With the naira losing value and interest rates climbing higher than ever before, that once-manageable loan has turned into a financial albatross around the company’s neck.

“International funding was $10 million, interest was 5%. Now, looking back, it almost feels like we were setting ourselves up for failure,” DaSilva admitted. “This situation became so dire after our recent audit that I decided to step back completely from raising money for Nigerian businesses.”

His decision wasn’t made lightly. For someone who’s built a career on entrepreneurship and innovation, walking away from funding opportunities must have been a tough pill to swallow. But as DaSilva explained, the risks simply outweighed the rewards in today’s economic climate.

The Broader Implications for Nigerian Entrepreneurs

DaSilva’s concerns extend far beyond his own company. He’s worried about the future of entrepreneurship in Nigeria, especially for young innovators with big ideas. In his view, securing favorable loans has become nearly impossible under the current economic conditions.

“It’s going to take nothing short of magic for people in our generation with ambitious plans to actually find good loans,” he lamented. “The system isn’t set up to support them, and that’s a problem.”

While DaSilva didn’t go into specifics about the role of the Central Bank of Nigeria (CBN) in these issues, he did hint at additional challenges caused by past CBN policies. Although he chose not to elaborate, his comments suggest that there’s more to the story than meets the eye.

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As we navigate these uncertain times, one thing is clear: the economic landscape in Nigeria is shifting, and entrepreneurs like Leo DaSilva are feeling the brunt of those changes. Whether or not solutions will emerge remains to be seen, but one thing’s for sure—voices like his are crucial in sparking conversations that could lead to meaningful change.