Valuing a Nigerian bank is not the same as valuing an American bank. Beyond normal business risk, you face naira devaluation, political instability, regulatory changes, and infrastructure gaps. These must be quantified and added to the discount rate.

Cost of equity (EM) = rf + β × ERP_base + λ × CRP. CRP = Country Risk Premium, estimated from sovereign default spreads. Lambda (λ) measures how much of a specific company's revenue is exposed to country risk — a global company with 20% Nigeria revenue has lower lambda than a purely domestic Nigerian firm.