Tech start-ups to play crucial role in Nigeria’s growth story – Expert

Nigeria's tech industry is on the brink of a revolution, with the potential to significantly boost the local economy through education, employment, and entrepreneurship. The country has a history of successful technology companies that have made a considerable impact in various sectors. With the rise of tech start-ups in recent years, sectors such as banking, e-commerce, and AgriTech have seen remarkable advancements. These start-ups have not only facilitated easier financial transactions but have also improved efficiency in the agricultural sector. The Chief Technology Officer at Microsoft Nigeria, Babs Ogundeyi, highlighted the critical role that tech start-ups play in driving economic growth by creating value across different industries. Over the past two years, African tech start-ups raised approximately $600 million, with Nigeria accounting for about 30% of that figure. This influx of funding has translated into job creation and empowered small businesses to expand their reach to a broader audience. Despite the progress made, Ogundeyi believes Nigeria is still at the early stages of its technology revolution, with immense untapped potential waiting to be harnessed. Silicon Valley, often held as the gold standard for tech innovation, boasts a GDP of $250 billion, a benchmark Nigeria aspires to reach. The key challenges hindering the growth of the tech industry in Nigeria include the high cost of starting a tech company, inadequate power supply, limited access to hubs, and insufficient funding. To overcome these obstacles, Ogundeyi emphasized the need to create an enabling environment for tech start-ups to thrive. He also stressed the importance of educating investors on the potential returns of investing in technology companies compared to traditional sectors like real estate. Persuading investors to take risks in the tech space requires showcasing success stories and demonstrating the impressive growth potential of the sector. While universities in Nigeria have produced talented computer science graduates who have excelled in the tech industry, there is still room for improvement in equipping students with the skills needed for tech entrepreneurship. Some universities have a reputation for fostering innovation and producing top-tier graduates, but there is a need for more institutions to prioritize tech education to support the burgeoning start-up ecosystem in Nigeria. As the tech industry continues to evolve, nurturing a pipeline of skilled professionals will be crucial in driving innovation and sustaining the momentum of economic growth in Nigeria.