Nigeria is a complex country that triggers many fears and hopes for the world of tomorrow. On one side, the country is unstable as shown by appalling statistics, which continuously rank Nigeria as one of the poorest countries worldwide. According to a recent report, Nigeria is the world’s 20th poorest country in connection to its extremely low level of GDP per capita. Furthermore, 46% of its population is currently living below the poverty line, and can only survive day by day. One the other side, Nigeria is one of the largest African economies, with a rising digital community and an engaging start-up ecosystem. Both sides of the country are accurate and need to be considered when analyzing the Nigerian case. However, for many Nigerian, the solution to the challenges the country is facing could be found in this new digital industry.
The Digital Community in Nigeria:
Nigeria is an African country inhabited by 182 million people. Half of this population is younger than 30 and this young population is eager to work in the start-up community. Indeed, a recent survey indicated that 82% of the youngs interviewed would confidently consider a career as an entrepreneur. The motivation from the population is positively influencing the rising digital community. Indications of this statement can be found in the following examples:
- Between 2015 and 2017, Nigerian fintech managed to raise 100 million dollars in investment.
- The rise of the ICT sectors’ impacts on the Nigerian GDP passed from 1% in 2001 to 10% in 2018.
- The presence of 55 tech hubs, such as incubators or accelerators in the country, to support this growing community of digital start-ups.
- In 2019, Interswitch, a Nigerian start-up specialized in electronic payment and digital commerce, was the first African start-up to reach 1 billion dollars of market capitalization on the London Stock Exchange.
- 122 million internet users are in Nigeria, the biggest internet community in Africa
What is next?
This new paradigm is expected to positively influence the Nigerian society. It will not be an easy road since Nigeria still faces many challenges connected to its undeveloped economic situation, its high level of corruption, and its complex social issues. However, more and more organizations are becoming interested in this untapped market. Organizations, such as Amazon and Facebook, are now investing in Nigeria and this trend is not expected to slow down. Nigeria might not become the next Silicon Valley overnight, however it would be unwise to ignore this new digital player.
References:
https://www.cgdev.org/reader/new-economy-africa-opportunities-nigerias-emerging-technology-sector?page=0
https://spendmenot.com/blog/poorest-countries-in-the-world/
Interesting to shine a light on Nigeria. Also great that you share that there is a great gap between the underdeveloped country-side and the booming start-up culture in Lagos.
In my opinion, the two sides are not only seperated from each other, but also intertwined. Unemployment and unfulfilled needs do lead to entrepreneurial behaviour of the youth. I actually found an artical on this here:
https://academicjournals.org/journal/AJBM/article-full-text-pdf/118FFB642868#:~:text=In%20Nigeria%20of%20today%2C%20govern,It%20leads%20to%20wealth%20creation.
The study encourages the set up of entrepreneurial centres to bring together problems-to-be-solved, entrepreneurs and investors. Mainly the latter is lacking, but Nigeria is an interesting country to invest time and money in, as great growth is expected.
Cheers!
Hey Max, thank you for your comment. I really liked the insight that you provided, and I totally agree with you. The are many challenges to do business in Nigeria, however it can also provide opportunities since Nigerian companies have the possibility to create tailored solutions. The paper you shared makes a lot of sense, since entrepreneurs have the potential to transform the country. It reminded my of a Nigerian start-up called Andela who search for young people interested in coding and programming. The role of the startup is those train those young people, and it is payed to do so by companies interested in this pool of talent. I really liked this business model since a entrepreneur was helping matching young people with companies in order to increase opportunities for everyone.
Very interesting. African countries are facing a revolution. I believe there is a lot of potential in countries like Nigeria, especially because of the young and enterprising population. The population growth is also enormous. IT and technology will be very valuable, given the poor infrastructure and vast distances in African countries. Technology can be a great solution to many problems. Developments in the IT sectors are also enabling many countries such as Nigeria to catch up with the rest of the world. Do you think ‘African Amazon’s and Google’s’ will emerge in the coming years or will the African countries be ‘colonized’ by Western or Chinese technology?
Hey Elias, thank you for your comment. That’s a really good question, but for now it seems that both Amazon and Google are heavily investing in the African market, so I am not really sure that in the short term local companies will be apple to compete. But, in the long run, it will be a challenge for Google and Amazon to operate while integrating the cultural and social conditions present in Nigeria. So I wouldn’t be surprises, in the long run, to see a challenger that better understands the challenges and conditions of the Nigeria market.
Thank you for your insights Deborah! The contrast in this country is very interesting but I believe that with a bit of help from other countries, NGOs and big companies, Nigeria could grow to become a country with numerous opportunities, and thus inspire its neighbors countries to do the same. The Nigerian government should understand the possibility of growth they have and help with investments or by reinforcing education for the future economic leaders of their country.
Thank you for your comment, I completely agree with you. It’s going to be a combined effort between the government, the businesses, NGOs, and the population. But I was happy to see during my researches that all those actors understand the importance of technology and collaboration, so hopefully they are going to solve together those issues.