It’s like a chain reaction: an economic downturn leads to high cost of operations. Even though companies try to manage and scale through, the recent doubling of data costs by telcos in Nigeria, following NCC’s approval, has almost completely killed the dream of digital learning for individuals, including the customer base of edtechs like Edukoya.

Edukoya was seen as one of the companies giving hope to Nigeria’s edtech sector, aiming to bolster learning through an AI-powered digital platform. 

However, its sudden shutdown has left us questioning the sustainability of the environment Nigeria presents to edtech startups. Despite investments and a growing demand for digital learning, many startups find it hard to stay afloat.

Edukoya’s shutdown is not an isolated case—other edtech startups in Nigeria, such as Quizac, now acquired by Tekedia Capital, have also failed to scale successfully. 

While Nigeria’s edtech sector is projected to reach $400 million in 2025, we find ourselves at a crossroads, unsure of the industry’s thriving ability in an economy where disposable income is low and infrastructure gaps haven’t changed much.

Some organisations go as far as providing laptops for their students, but how many focus on data provision among other necessities? Is Nigeria’s edtech sector truly prospering, or are these shutdowns indicative of deeper structural issues? 

Let’s examine the industry’s prospects, challenges, and what Edukoya’s closure means for the horizon of edtech in Nigeria.

The Assurance of Nigeria’s Edtech Sector

A Market Ripe for Disruption

Nigeria’s education system is affected by overcrowded classrooms, underfunded public schools, and a lack of quality teaching resources. Edtech was supposed to bridge this gap.

• Massive student population: With over 40 million primary and secondary school students, Nigeria has one of the largest youth populations globally.
• Growing internet penetration: Over 50% of Nigerians now have internet access, and mobile subscriptions have grown above 157 million.
• Increased smartphone adoption: As smartphone prices drop, more students can access online learning platforms.

With poorly funded public schools, an alarming student-to-teacher ratio of 46:1, and outdated teaching methods, digital learning was meant to leverage the improvements and bridge these gaps.

Investment in Edtech

Between 2019 and 2023, Nigeria’s edtech sector witnessed a surge in funding:

• uLesson raised $15 million in 2021.
• AltSchool Africa secured $3 million in 2023.
• Edukoya itself raised $3.5 million in a pre-seed round, one of the largest for an African edtech startup.

The expectation was that these investments would drive growth, but Edukoya’s shutdown points to deeper issues.

Challenges Facing Nigerian Edtech Startups

Funding Winter & Economic Obstacles

While Nigeria’s edtech sector once attracted investors, the global funding slowdown has hit startups hard. In 2023, African startup funding dropped by 47% compared to 2022, forcing many companies to rethink their strategies.

• High inflation has increased costs of operations.
• The naira’s depreciation has made it harder for startups to manage foreign-denominated expenses.

Startups that rely on continuous funding rounds to survive are at risk, as venture capitalists become more cautious.

Market Readiness

Edukoya admitted that the Nigerian market was not yet ready for its synchronous learning model. The company struggled with:

• Low disposable income: Most Nigerian parents cannot afford premium digital learning services.
• Macroeconomic instability: High inflation and naira depreciation made scaling difficult.
• Connectivity and device access: Many students lack stable internet and affordable smartphones/tablets.

Without an addressable market that could afford edtech services at scale, Edukoya had no path to profitability.

Low Monetisation & Profitability Issues

The biggest challenge for Nigerian edtech startups is monetisation.

• Who is paying for these services? The majority of Nigerian students attend public schools, where parents struggle to afford even basic education expenses.
• Subscription fatigue: Many edtech platforms offer freemium models, but converting free users to paying subscribers is difficult.
• Alternative learning methods: Traditional home tutoring and free YouTube educational content compete with paid platforms.

Without a sustainable revenue model, even well-funded startups risk collapse.

Infrastructure & Accessibility Gaps

Nigeria’s high data costs and frequent power outages make digital learning difficult.

• Internet access: While penetration is increasing, many students still lack reliable connectivity.
• Device availability: Smartphones and tablets are expensive for lower-income families.

Unlike in developed markets, edtech solutions in Nigeria must address these accessibility issues to succeed.

Regulatory and Policy Limitations

The Nigerian government has shown interest in edtech, but policies are still weak.

• Public-private partnerships are limited.
• Government curriculum restrictions make it hard for edtech startups to innovate freely.

Without better regulatory support, scaling edtech solutions will stay challenging.

At the 2024 Mastercard Foundation Edtech Conference, Nigeria’s Minister of Communications, Dr Bosun Tijani, emphasised that inclusion is essential to edtech success:

“If we fail to reach all learners, we fail to fulfil our potential to revolutionise education.”

Edukoya’s battle to scale says a lot about inclusion still being far from reality.

Edukoya’s Case Study: What Went Wrong?

Business Model & Growth Challenges

Edukoya set out to enhance online K-12 learning in Africa, providing Digital educational content, Online tutoring for students and parents and An AI-powered platform for personalised learning. The edtech company provided free learning resources and paid premium services. 

Despite its vision, the startup faced: 

• High burn rate: Rapid expansion and costs of operations outpaced revenue growth.
• User retention struggles: Converting free users to paying customers proved difficult.
• Market competition: uLesson and other platforms had already established themselves in the space.

Funding & Economic Pressures

Though the edtech company raised $3.5 million, Edukoya couldn’t sustain operations in Nigeria’s harsh economic climate. Rather than pivoting or depleting funds, Edukoya chose to wind down operations and return capital to investors.

The startup had considered:

• Partnerships and mergers but failed to find viable options.
• A potential pivot to fintech, though it later denied this was its plan.
• Layoffs and cost-cutting, with reports stating its office had been closed for six months before shutting down.

The company reached 80,000 students, answered 15 million questions, and hosted thousands of daily live classes, however, it concluded that scaling was impossible in Nigeria’s current market conditions.

Lessons from Other Failed Edtech Startups

• Relying solely on VC funding is risky.
• Sustainable revenue models are indispensable.
• Adaptation to local economic realities is necessary.

Is There Still Hope for Edtech in Nigeria?

Long-term success will depend on:

• Affordable pricing models: More flexible payment options to suit the Nigerian market.
• Government support: Stronger policies to integrate edtech into public schools.
• Infrastructure improvements: Better internet connectivity and access to learning devices.

What Can Startups Do Differently?

• Rethink monetisation models: Tiered pricing or government partnerships can help affordability.
• Improve accessibility: More offline learning solutions for students with limited connectivity.
• Adopt flexible pricing models: Tiered pricing or partnerships with schools can help improve affordability.
• Leverage AI & adaptive learning: AI-driven personalised learning could make services more cost-effective.
• Strengthen government partnerships: Working with public schools can drive scale and adoption.

Predictions: More Shutdowns or a Market Rebound?

If the funding winter continues and macroeconomic issues get worse, more edtech shutdowns are inevitable. 

• Market readiness is still low.
• Disposable income constraints limit adoption.
• Infrastructure gaps make digital learning inaccessible to many.

However, startups that adapt to both local and global economic realities and build sustainable models may still thrive.

Unless business models evolve to fit Nigeria’s unique economic and educational space, the so-called “edtech boom” may remain nothing more than a myth.

For Nigerian edtech to succeed, startups must focus on real, scalable impact.

These nations have effectively leveraged EdTech to tackle major educational challenges such as resource shortages and teacher deficits, offering scalable, cost-effective, and high-quality learning materials.

Africa faces similar challenges, but the potential for EdTech here is particularly significant as the continent prepares for a demographic shift that will see its youth population represent over 40% of the global total by 2030.

This presents a critical opportunity for African countries to embrace EdTech as a key part of their educational strategies.

However, despite many governments dedicating around 5% of their GDP to education, the demand continues to outstrip the available resources.

Traditional education systems, often marked by overcrowded classrooms and a lack of trained teachers, are increasingly strained under the growing population.

UNESCO estimates that sub-Saharan Africa will need an additional 17 million teachers by 2030 to achieve universal primary and secondary education.

EdTech offers a promising solution by enabling remote learning, which can ease the pressure on physical classrooms and allow students to learn at their own pace.

Platforms like Edukoya in Nigeria and Kidato in Kenya are leading the way with online learning tailored to K-12 students.

Edukoya’s offerings, including 24/7 exam preparation tools and personalized performance tracking, demonstrate how technology can make quality education both accessible and affordable across the continent.

Similarly, ULesson has expanded its presence in Nigeria, Uganda, Kenya, and Ghana, helping students prepare for international exams with a freemium model.

However, the digital divide remains a significant barrier to realizing the full potential of EdTech in Africa.

With only 27% of sub-Saharan Africa having internet access, a large portion of the population is excluded from these digital advancements.

The World Bank estimates that $100 billion is needed to provide universal, good-quality, and affordable broadband access across the continent by 2030.

This investment must go beyond infrastructure, with 20% dedicated to building user skills and developing local content to ensure that EdTech solutions are relevant and effective.

Despite these challenges, innovative solutions are emerging. Companies like Syafunda and Snapplify are addressing connectivity issues by deploying “Wi-Fi boxes” preloaded with educational content to schools without internet access.

Additionally, Eneza and M-Shule in Kenya are using SMS-based platforms to reach students without smartphones, ensuring that education continues even in remote areas.

These efforts are crucial in narrowing the digital divide and enabling EdTech to thrive in challenging environments.

Globally, Africa’s EdTech landscape shares similarities with other developing regions like Southeast Asia and Latin America, where localized content and mobile learning platforms have successfully reached students in remote areas. India’s experience, particularly, offers valuable lessons.

Despite the surge in EdTech adoption during the COVID-19 pandemic, India’s sector faced significant challenges post-pandemic, including layoffs and a re-evaluation of business models.

This underscores the importance of sustainable, long-term strategies that complement rather than replace traditional teaching methods.

To ensure EdTech’s success in Africa, it must be thoughtfully integrated into existing educational frameworks. Rather than replacing traditional classrooms, EdTech should support teachers by providing remote coaching and enriching the learning experience.

This requires a collaborative effort from governments, private sector players, and civil society to create an environment where EdTech can flourish.

Policymakers need to prioritize infrastructure, support local content development, and equip educators with the skills to effectively use these new technologies.

Therefore, while the challenges of implementing EdTech in Africa are substantial, the potential benefits are even greater.

By addressing the digital divide and fostering inclusive growth, EdTech can play a transformative role in African education, equipping millions of young people with the tools they need to thrive in an increasingly digital world.

The success of this transformation will depend on collective action, sustained investment, and a commitment to long-term value over short-term gains.

As Africa stands on the verge of this educational revolution, embracing EdTech is not just an option—it is essential for securing the continent’s future.

*Mahmood Owolabi is the Co-founder, Transition School. Email: mahmood@transitionschool.uk.

One of such aspects is education which remains in our everyday lives and is the bedrock of all other sectors. In recent times, education has become a necessity thriving hand in hand with technology, birthing edtech.

The need to combine education and technology has been way before the pandemic which put a rigorous speed to what seemed to have been underestimated. Of course, individuals and groups took this upon themselves, building edtech companies that are thriving and making the sector scale.

Not limited to these, some edtech startups making waves and have shown promising advancement include: 

1. Edukoya

The 24/7 free learning platform enables students to master key subjects and prepare for school and university entrance exams. Edukoya affirms that 96% of its students get higher scores within a short period and students are tutored according to their strengths, helping them get better with time.

A little over a month ago, the Lagos- and London-based startup raised $3,500,000 in pre-seed funding led by European VC firm Target Global to scale operations.

2. Teesas

Interestingly, Teesas enables its students to learn alphabets, greetings, songs, folktales and history in indigenous languages. The edtech platform has an app that enables parents to monitor their child’s learning progress in real-time.

With over 150,000 downloads on the Google Play Store despite being founded less than 2 years ago, Teesas raised $1,600,000 pre-seed funding in December last year. The funds were to enable the startup’s expansion into new markets, launch a marketplace that will link learners with tutors for private lessons, and expand the range of products in its portfolio.

3. uLesson

uLesson asserts that its app has been downloaded by over 2,000,000 people, 12,900,000+ lessons provided by the startup have been watched by students and 25,600,000+ questions from students have been answered by uLesson.

The two-year-old startup closed a $15,000,000 Series B round last year, 11 months after its $7,500,000 Series A, completed by five investors: Tencent, Nielsen Ventures, and existing investors Owl Ventures, TLcom Capital and Founder Collective.

4. Edcent

Edcent offers online courses and training for both universities and companies. The Nigerian-based company provides practice exercises, instructional videos, and a personalised learning dashboard that enable users to study at their own pace, within or outside classrooms.

With users within and outside Nigeria, Edcent was also launched in the heat of the pandemic and raised pre-seed funding from CrownVest last year.

5. LearnAM

ScholarX, a Lagos-based edtech startup recently pivoted into LearnAM, a localised mobile platform that provides audio and visual educational content to improve digital literacy and inclusion in Africa.

LearnAM is a mobile platform that provides audio-visual content, in localized languages, to improve digital literacy, digital skills and vocational skills of Africans. The Startup adopts a freemium model and all of its foundational courses are free but users will be required to pay a few thousands to access more advance courses.

LearnAM is available on Android (for smartphone users). You can also access it via KiaOS (for feature phone handlers); in other words, people from low-income households who don’t have access to internet-enabled phones can use the platform on their feature phones.

The startup hit 11,000 users within two months it launched! It plans to reach over 100 million people in Africa, starting from Nigeria where it launched, with the three majority languages: Yoruba, Igbo and Hausa. It also has Pidgin and English languages.

Learners can switch from the English language to any of these local languages when taking a course on the app. It is definitely an edtech startup to watch in 2022

6. Edves

Nigeria and Ghana-based Edves provides a platform where digital learning and teaching is made seamless. Via the platform, parents can monitor their children’s progress in real-time.

Last year, the edtech company serving African k-12 schools raised $575,000 seed funding led by Beta Ventures to improve its technology and reach in over 800 schools across Nigeria, Ghana, and Zimbabwe.

7. Roducate

This is a comprehensive curriculum based e-learning platform launched in 2010. Everything schools need is, on Roducate. Schools can create their own platform on Roducate that mirrors the site’s main platform. The platform comes with a suite of features: Lecture Notes, Videos, Podcasts, Practice Assignments, Mock Exams and My Network–a chat function, within the app, for communication between teachers and students and among students. Learn more about Roducate here.

8. Ed Partners Africa

Ed Partners Africa makes access to quality education seamless. The edtech startup is focused on enabling access to credit for private schools providing education to the low-income populace.

Ed Partners Africa’s $1,900,000 fund raised last year enabled the company to boost its goal in bridging educational gap through school-focused lending and a hub-and-spoke based model where the company’s relationship managers work closely with the school leadership through the entire credit process.

9. Edusko

Edusko is an education marketplace for schools, parents, students, vendors, solution providers, EdTech and Original Equipment Manufacturers. Edusko leverages technology and data to make life easier for schools, parents, students, teachers, donor agencies, policy makers and leading brands that are genuinely interested in the African education ecosystem. 

The platform’s mission is to enhance the quality of and access to education in Africa by creating game changing solutions and platforms for education providers, school leaders, policy makers, teachers, parents and students.

10. Utiva

Utiva is developing talents for the future of work. The company organises a number of fellowships to help customers master certain tech skills like Digital Marketing, Data Science, Data Analysis, Product Manager, UI/UX Designer, and so on. According to them, they are the “best way to gain job-ready expertise for the careers of the future”.

Hewlett-Packard (HP) is backing Utiva in a $50,000 partnership meant to help more women and girls learn more premium technology skills. See details here.