From Hustle to Tech: Supporting Nigeria’s Burgeoning Startup Ecosystem
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Author: Kabir Sa’id Muhammad
Every Nigerian on the street is trying to make it, and the chances of making it and living the dream through the everyday traditional hustle don’t seem like an option. A hustler is more like an entrepreneur. Entrepreneurship is a built-in part of Nigerians’ DNA, so to say. Every family, household, or community has its trade, business, or services at a very micro level up to the enterprise level. Before the colonial era, entrepreneurship was the only way of life for most people.
During the colonial era, the mode of entrepreneurship changed. The colonial masters brought their goods and made Nigerians their go-betweens. Then came formal education and the companies established by the colonial masters. These companies employed a lot of young Nigerians. As many Nigerians began to accept formal education, most people were trained to join the labor force and not to be entrepreneurs. The entrepreneurial mindset began to fade away.
In recent years, most graduates have attended or received entrepreneurship training, which gave rise to the Nigerian startup ecosystem, changing the narrative from the bustling streets echoing with the traditional echoes of “hustle” to the dynamic landscape of technological innovation. Without being affected by the brakes of the economic storm, Nigeria is one of Africa’s best destinations for startups. This essay explores the changing face of Nigerian entrepreneurship, moving from traditional ventures to a tech-driven ecosystem.
With a growing population of 2.6% a year, the most populous country in Africa, and the seventh in the world, Nigeria’s structure is potentially an economic asset. The country has the largest population of youth in the world, with a median age of 18.1 years. About 70% of the population is under 30, and 42% are under the age of 15. With a burgeoning mobile internet penetration rate, Nigeria is experiencing an incredible surge in entrepreneurship and startup activity — transforming the landscape from traditional hustle to a dynamic hub of innovation. Nigerian startups are exploding, with innovative entrepreneurs tackling challenges and transforming industries across the country and continent. But how are these startups powering their growth? Global VC firms are recognizing Nigeria’s potential, pumping millions into startups. In 2022, they raised $976 million; in 2023, they raised over $1.2 billion. These investments provide crucial capital for scaling operations, hiring talent, and expanding into new markets. Platforms like Angel Investors Network Nigeria connect promising ventures with angel investors seeking high-growth opportunities. This personalized approach provides valuable mentorship and guidance alongside financial backing.
The key achievements and thriving sectors with tremendous and increasing growth are FinTech, EdTech, AgriTech, and HealthTech. FinTech is the most successful in all the tech startup ecosystems in Nigeria and across Africa, with notable and reputable companies like Opay, MoniePoint, Chipper Cash, Paystack, and Cowrywise. They have also gained international recognition, attracted investors, and boosted the Nigerian economy by providing financial inclusion and banking services to the unbanked populace. The EdTech sector in Nigeria is another rapidly growing industry. Startups such as uLesson, Gradely, and PrepClass are leveraging technology to improve education accessibility. These startups offer online learning platforms, virtual classrooms, and educational apps to enhance the learning experience. The AgriTech and HealthTech startups are using technology to bridge and revolutionize the industries from their status quo to state-of-the-art.
The Nigerian government has recognized the importance of entrepreneurship and startups in driving economic growth and job creation. As a result, it launched The Nigerian Startup Act and various initiatives like the 3 Million Technical Talent (3MTT) Program, Youth Entrepreneurship Support (YES) Program, and others to support the ecosystem. These include grants, tax breaks, and incubation programs, providing valuable resources and fostering a favorable environment for innovation to thrive.
The Nigerian startup ecosystem is not without its challenges. To thrive and remain stable, startups often need to be self-sufficient, providing their own electricity, water systems, staff training, funding, and infrastructure. While the Nigerian government has taken steps to create a supportive environment, addressing the macroeconomic climate is crucial for sustained growth.
Nigeria’s entrepreneurial landscape is undergoing a remarkable transformation, shifting from the bustling streets of traditional hustle to a dynamic hub of tech-driven innovation. This essay has explored the key drivers of this transformation, including a burgeoning population of young, tech-savvy individuals, a rising tide of tech startups, increased investment, and supportive initiatives. While the road ahead may be challenging, Nigeria’s burgeoning tech ecosystem holds immense promise for both the nation and the continent. By nurturing its young talent, fostering a supportive environment, and embracing technological innovation, Nigeria can rewrite its entrepreneurial narrative and solidify its position as a dynamic hub of growth and progress.
References
Vazi Legal. (n.d.). The Nigerian startup ecosystem: An overview. Retrieved from https://vazilegal.com/the-nigerian-startup-ecosystem-an-overview/
The Guardian. (2022, March 14). Nigeria earns $976m of Africa’s $3.3b tech startup investments. Retrieved from https://guardian.ng/news/nigeria-earns-976m-of-africas-3-3b-tech-startup-investments/
Technext. (2022, December 27). Nigerian startups attracted $1.2bn in 2022. Retrieved from https://technext24.com/2022/12/27/nigerian-startups-attracted-1-2bn-in-2022/