Zoho, an Indian software company, has announced a price increase for its Nigerian users starting in August 2024.
This adjustment comes after months of internal deliberation and aims to ensure the sustainability of high-quality services in the face of Nigeria’s challenging market conditions.
The primary reason for the price increase is the rapid devaluation of the naira. Over the past two years, the naira has fallen sharply from ₦350 to $1 to about ₦1500 to $1.
This devaluation has put pressure on many businesses operating in Nigeria, including Zoho, to reconsider their pricing strategies.
Kehinde Ogundare, Zoho’s country manager, and Ali Shabdar, Regional Director for the Middle East and Africa, highlighted the impact of the naira’s devaluation on the company’s operations and the need to adjust prices to continue offering top-tier services.
They emphasized that the decision was not made lightly but was necessary to adapt to the current economic reality in Nigeria.
In 2020, Zoho set the price of its One suite at ₦7,500, which was approximately $6 at the time.
This was a huge reduction compared to prices in other countries.
Despite a global price change in 2021, Zoho had previously exempted Africa, South America, Latin America, China, and Japan from these increases, demonstrating a commitment to affordability in these regions.
The recent devaluation of the naira has also led many Nigerian startups to explore local alternatives to Zoho’s services.
However, Zoho has experienced a 50% growth in Nigeria over the past year, driven by businesses adopting cloud technology for digital transformation and resilience.
The company said it remains committed to supporting its Nigerian customers through this transition and ensuring that they continue to receive the high-quality services they have come to expect.
