Every company exists to make profit, at least that is what basic business principles tell us. However, as a multi-national or business that depends on international components, profit is relative. This relativity of profits is driven by a number of factors, ranging from tax policies, structural instability and FX shortages. 

Now, taxation, for example, is beyond your control as a business. There might be incentive structures to explore pay less but it is still largely out of your control. Various factors that can affect your profits mostly are out of your control, but you can get more control on a key factor—currency volatility in emerging markets. 

The Monster Of Currency Volatility

Between 2023 and now, 7 out of 10 countries in Africa have struggled with FX shortages and currency depreciation, with Nigeria the continent’s most populated country losing ~40% of its currency’s value. The combination of these challenges have made it a battle for multinationals to access FX for capital recovery and profit remittance. 

One of the horrible downsides to this battle is how it has led large corporations to explore unstable alternatives that have cost them badly.  In 2021, MultiChoice, a satellite television service provider, was swindled of the naira equivalent for $16 million. The service provider in a bid to desperately access scarce FX fell prey to a bad actor. 

Another downside is the loss in value. The scarcity means that corporations hold on to local currencies meant for exchange longer than they can afford to, and need to pay extra when they finally source FX to get the exact value they need as the local currency might have depreciated in value by then. 

Enter Stablecoins: The Dollar With 24/7 Access.

Traditionally, when you approach a local financial institution for dollars they need to have it in their possession to process your request. In essence, once their inflow is affected you cannot access dollars. Stablecoins make things easier. 

Local financial institutions will accept your local currency for exchange, but no matter how much you have in local currency, from the exotic categories, you can hardly convince a foreign financial institution to make an exchange. 

Before we move on, let’s quickly explore the categorisation of currencies: 

Currency Categories and Ease of Exchange

Global currencies are categorized based on their ease of exchange and market demand.

• G7 Currencies (e.g. USD, GBP, EUR): These major world currencies have high liquidity and are easily exchangeable across global markets.

• G10 Minors (e.g. CAD): These currencies are moderately liquid, meaning they are exchangeable but may have higher conversion costs and lower demand than G7 currencies.

• G20 Minors (e.g. ZAR - South African Rand): These are low-liquidity currencies, often facing higher volatility and fewer trading pairs.

• Exotics/Super Exotics (e.g. NGN - Nigerian Naira): These currencies have very low liquidity, making international exchange difficult due to scarcity and market restrictions.

What Stablecoins do is make it possible to exchange local currencies for the dollar despite the provider not holding a balance in the country of exchange. Here’s how the magic happens: 

1. The issuer of the stablecoin holds deposits to back every unit they issue. For example, the USDC—a dollar stablecoin—holds reserves regulated by the SEC in the United States to back every dollar they issue 1:1. 

2. Stablecoins are issued on the blockchain; a global ledger that ensures that everyone can make and verify transactions anywhere in the world. 

3. This unlocks access to the reserves held by the issuer—the dollar in the case of USDC. 

Given that stablecoins are accessible all round the clock, they provide unrestricted access to businesses who need FX in real-time.

What Stablecoins do is make it possible to exchange local currencies for the dollar despite the provider not holding a balance in the country of exchange. Here’s how the magic happens: 

1. The issuer of the stablecoin holds deposits to back every unit they issue. For example, the USDC—a dollar stablecoin—holds reserves regulated by the SEC in the United States to back every dollar they issue 1:1. 

2. Stablecoins are issued on the blockchain; a global ledger that ensures that everyone can make and verify transactions anywhere in the world. 

3. This unlocks access to the reserves held by the issuer—the dollar in the case of USDC. 

Given that stablecoins are accessible all round the clock, they provide unrestricted access to businesses who need FX in real-time.

What Stablecoins Look Like in Action

Value Protection For Stable Currency Operations

Let’s make this real. Picture a fintech company planning to scale into Nigeria. You’ve identified a huge market opportunity: Nigeria’s population is growing, mobile penetration is high, and the fintech sector raised over $1.2 billion in 2022.

But here’s the challenge: Nigeria’s Naira is notoriously unstable. Let’s say you generate ₦500 million in revenue this month. By the time you convert it to USD, currency devaluation has wiped out part  of your earnings. 

If this pattern continues for months, the business will hit a level of unpredictability that can derail cash flow, shrink margins, and discourage investors. But by adopting stablecoins, you unlock the opportunity to convert local payments to USD in real time!

Stablecoins create a predictable financial system, giving you the confidence to scale in countries Nigeria without constantly firefighting currency risks.

Cheaper Multi-national Payouts

Now, imagine your business expanding beyond Nigeria into Malawi and Zambia. Traditionally, handling payments across these regions means juggling multiple bank accounts, dealing with expensive forex conversion fees, and waiting days for settlements. Sending $100,000 from Nigeria to Zambia through a bank could take up to five business days and cost as much as $5,000 in fees. 

With a stablecoin infrastructure that has local payouts integrated, the same transaction settles in minutes, with fees as low as 1%, saving your company thousands every month. 

Instead of navigating slow, costly remittance channels, you get a single global account that enables real-time payments across multiple markets—without the financial drag. Faster settlements mean no more cash flow bottlenecks, and lower costs make cross-border transactions more sustainable. Stablecoins don’t just protect your revenue; they create a smoother, more efficient way to scale across Africa.

Of course, compliance is always a concern. Ensuring your operations align with local regulations can feel overwhelming. But with the right tools—like Partna’s payments API—you can integrate stablecoin solutions into local payment systems while maintaining full compliance, so you can focus on growth instead of red tape.

Take the First Step Toward a Stable Market Entry

Expanding into Nigeria or Ghana doesn’t have to feel like a gamble. With stablecoins, you can protect your revenue, stabilize cash flow, and scale confidently, even in the face of currency volatility.

At Partna, we specialize in simplifying market entry for businesses like yours. With our unified payment API, onramp, and offramp solutions, we make operating in Nigeria’s challenging market not just possible—but profitable.

Let us handle the financial complexity so you can focus on growing your business. Contact Partna today to learn how stablecoins can transform your market entry strategy in Nigeria.