However, a growing number of professionals are choosing to stay and invest in local entrepreneurship ventures. They gain experience globally, then come back to build locally.

This change could be said to have been influenced by personal ambition, economic opportunity, and a deep desire to positively impact local communities. 

But why are more Nigerians embracing entrepreneurship over migration, and how is this choice impacting the country’s economic industry?

The Lure of Migration and Its Challenges

Historically, skilled Nigerians migrated to escape limitations in career progression, infrastructure, and standard of living. 

While the allure of developed nations is strong, many discover that living abroad is not without its challenges. Migrants often face cultural adjustment, high living costs, and complex legal systems. 

The struggle to integrate into new environments has caused many to reconsider their decisions, sometimes leading to disillusionment.

Net Migration to UK Fell 10% in 2023 [GRAPH]

The Rise of Local Entrepreneurship

In contrast, local entrepreneurship is becoming a more attractive option for skilled Nigerians, driven by multiple factors:

1. Economic Opportunities: Despite Nigeria’s challenges, its local markets continue to grow, offering lucrative business opportunities. Entrepreneurs are increasingly identifying and capitalizing on untapped niches that address local needs.
2. Social Impact: A strong desire to contribute to Nigeria’s development is another driver. Entrepreneurs see themselves as agents of change, creating jobs and enabling community development in ways that migration cannot achieve.
3. Innovation and Technology: Technological advancements have helped local entrepreneurs to compete on a global scale. The rise of digital platforms and tools has made it easier for businesses to start and grow without needing to leave Nigeria.

Several Nigerian entrepreneurs are examples of this change

Iyinoluwa Aboyeji, co-founder of Andela and Flutterwave

Take Iyinoluwa Aboyeji, the co-founder of Andela and Flutterwave. Aboyeji chose to stay in Nigeria, where he has built platforms empowering African talent and businesses. 

His work with Andela, which focuses on training software developers, and Flutterwave, a payment solutions company, has greatly impacted the African tech space, with his current venture, Future Africa, which funds mission-driven innovators across the continent. 

Aboyeji believed in Nigeria’s ability to solve its own challenges and he remained focused on directly contributing to building the infrastructure and ecosystem necessary for sustainable growth.

Funke Opeke, CEO, MainOne

Similarly, Funke Opeke, who returned from the US to found MainOne, has helped in improving West Africa’s internet infrastructure. 

MainOne is a leading provider of telecom services and network solutions in the region, and under Opeke’s leadership, it has bridged huge gaps in digital access. 

After a successful career in the United States, Opeke returned to Nigeria driven by a desire to address the country’s urgent need for better internet infrastructure. Her vision for reducing the digital divide continues to drive her entrepreneurship goal and focus.

Olugbenga Agboola, co-founder of Flutterwave

Olugbenga Agboola, co-founder of Flutterwave, has simplified payments for businesses across Africa, helping them grow and operate efficiently. 

Flutterwave has become an essential pillar of the African fintech sector. Agboola remains in Africa because of his zeal to create solutions targeting the challenges faced by African businesses. With this, he ensures that Flutterwave continues to meet the dynamic needs of its users.

Temie Giwa-Tubosun, founder of LifeBank

Temie Giwa-Tubosun, founder of LifeBank, uses technology to connect hospitals with essential medical supplies, effectively saving lives. 

Her inspiration for LifeBank came from her personal experiences with the healthcare system in Nigeria, and her mission is to improve healthcare delivery in her home country. Giwa-Tubosun is deeply determined to use her platform to address healthcare challenges in Nigeria.

Shola Akinlade, co-founder of Paystack

Shola Akinlade, co-founder of Paystack, has simplified payments for businesses across Africa, allowing them to scale and thrive. 

Paystack’s acquisition by Stripe accentuated its global impact. Akinlade believes in the prospects of African businesses to compete globally. He has helped in building the infrastructure that supports the growth of businesses.

Odunayo Eweniyi, co-founder of PiggyVest

Odunayo Eweniyi, co-founder of PiggyVest, has made a huge impact in promoting financial inclusion and literacy in Nigeria. 

PiggyVest helps Nigerians to save and invest money, enabling them to adequately control their finances. Eweniyi’s decision to stay in Nigeria is driven by her vision to build people with the right mindset and her belief that local entrepreneurship can drive economic development.

Tayo Oviosu, founder of Paga

Tayo Oviosu, founder of Paga, has made financial services accessible to millions of Nigerians through mobile payments. Paga has become indispensable in the Nigerian fintech sector, bolstering how people handle financial transactions. 

Oviosu’s decision to stay in Nigeria allows him to remain close to his customers and better understand their needs, ensuring that Paga continues to deliver solutions that make financial services accessible to all.

The Patriots Who Build with Blistered Hands: Any Hope in Sight?

There is no gainsaying that the success of businesses in Nigeria has a profound impact on the economy and society. They contribute around 60% to the GDP, which equals approximately $295 billion annually, and are responsible for over 80% of jobs, whilst employing more than 52 million Nigerians (National Bureau of Statistics, 2024).

The  Foreign Direct Investment (FDI) reached $3.8 billion in 2023, with significant investments in telecommunications, oil, and renewable energy (UNCTAD, 2024).

Thus business activities continue to drive infrastructure improvements and urbanization, while the fintech sector has further transformed financial transactions, with digital payments reaching $670 billion in 2023 (Central Bank of Nigeria, 2024). 

Despite substantial CSR investments and economic contributions, challenges such as regional disparities and environmental issues remain prevalent (Nigerian Business Coalition for Sustainable Development, 2024; Environmental Rights Action, 2024).

An alarming statistics from the Nigeria Medical Association (NMA) indicate that over 1,000 doctors leave Nigeria annually for better working conditions and opportunities abroad, with popular destinations including the UK, the US, Canada, and Australia. 

Moreover, the media has been awash with reports of a massive exodus of engineers, technology experts, academics, researchers, and other professionals seeking opportunities in countries with thriving tech and engineering sectors. Despite this, there are still many who believe their contributions could help realize the Nigeria of our dreams.

It is important to state from the outset that the decision to stay in Nigeria or leave the country may be based on personal, professional, economic, social, and political reasons. This choice should not be judged as either good or bad. 

This is because, over the past two years, the Nigerian diaspora has made significant contributions to the economy, primarily through remittances, investments, and the transfer of skills and knowledge.

According to the World Bank and the Central Bank of Nigeria (CBN), remittances from Nigerians living abroad were estimated at around $20 billion in 2022. This substantial increase underscores the growing importance of remittances to Nigeria’s economy. 

For 2024, remittances are projected to be between $22 billion and $24 billion, reflecting a continued rise driven by the growing number of Nigerians abroad and advancements in financial technology.

For entrepreneurs who choose to stay, and build businesses over emigration,  they might have benefited largely from hindsight, insight, and strategic analysis. In Nigeria,  key entrepreneurial opportunities lie in technology and fintech, which attract significant investment and create jobs. 

The same can also be said of  Agriculture which is contributing 25% to GDP and supporting millions, presents other opportunities. 

In Nigeria also, Renewable energy, with projected investments of $2 billion by 2025, aims to address energy deficits and generate jobs. The healthcare sector, valued at over $5 billion, can reduce import dependency and improve health. 

E-commerce and retail can drive consumer spending and modernization, while education and edtech can enhance learning and create employment.

Additionally, Nigeria’s real estate offers opportunities for urban development, and tourism and hospitality support local businesses. The fashion industry generates significant revenue, and entertainment contributes not less than $7 billion annually. 

Each sector drives economic growth and job creation. Drawing parallels with H.W. Brands’ classic “The Men Who Built America,” which explores the lives and legacies of key industrialists like Andrew Carnegie, John D. Rockefeller, J.P. Morgan, Cornelius Vanderbilt, and Henry Ford, who transformed America through their innovations and philanthropy, it is clear that entrepreneurship, despite challenges, has the potential for significant impact.

However, when considering the chains of challenges faced by entrepreneurs in Nigeria, the question arises: is their patriotism worth it? While it can not be jettisoned that entrepreneurs play an important role in building the economy, the prevailing socio-economic and political climate in Nigeria can be said to be harsh, discouraging, and potentially stifling business success. 

According to Mr. Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of Economy, over 800 companies folded due to market instability, unfulfilled promises, breaches of contracts, foreign exchange market issues, and general economic instability. 

We opined that many of these challenges are avoidable with people-centred policies and well-thought-out actions, reflecting failures in leadership and governance.

Adding to these challenges are escalating interest rates, security issues, and unplanned subsidy removal, which leave entrepreneurs at a disadvantage. Alhaji Dangote’s refinery dubbed the “6th Wonder of the World,” serves as a reference point for the potential impact of well-managed projects.

In light of the questions posed by one of Jesus Christ’s apostles, “We have left everything to follow you! What then will there be for us?” It is essential to ask what the future holds for entrepreneurs who choose to build businesses amid challenging conditions. 

For us, we are of the opinion that the government needs to enhance entrepreneurship in Nigeria by improving access to funding, addressing the fact that only 8% of startups receive venture capital, and improving infrastructure, as Nigeria’s electricity meets only 45% of demand and internet penetration is at 50%. 

Furthermore, simplifying the business registration process, which currently averages 19 days, and providing tax incentives can also alleviate challenges.

With over 40% youth unemployment, supporting skill development is essential. Expanding market access, given that only 1% of SMEs export, and encouraging innovation with R&D investments (currently 0.5% of GDP) are vital. 

Also of importance is the promotion of public-private partnerships and celebration of entrepreneurship, which can further strengthen the ecosystem, potentially increasing its contribution to GDP, which was approximately 20% in 2022.   

The post Why Skilled Nigerians are Opting for Local Entrepreneurship Ventures Over Migration appeared first on Tech | Business | Economy.

Highlighting the sector’s prospects to generate up to N18.3 billion by 2026, Tijani noted its essential role as a backbone for the nation’s economic prosperity. 

This announcement came during an event organized by the Senate Committee on Information and Communication Technology (ICT) and Cybersecurity, alongside the House of Representatives Committee on Digital and Information Communication Technology, aimed at raising awareness about the National Digital Economy and e-Governance Bill.

Dr. Tijani pointed out that the ICT sector is already a big contributor to Nigeria’s GDP, accounting for approximately 13 to 18%.

In the last quarter of 2023 alone, the sector contributed about 16.6%. 

The sector’s revenue has seen commendable growth, from N5.49 billion in 2019 to the projected N18.3 billion by 2026.

The minister attributed this to Nigeria’s status as a leading destination for foreign direct investment (FDI) in technology, with tech startups attracting around $2 billion in FDI last year.

Beyond financial figures, Tijani pointed to the ability of the digital economy in creating jobs and enhancing productivity across various sectors. He noted that the digital economy’s growth could spur development in other areas, acting as a stimulus for broader economic progress.

Central to this vision is the National Digital Economy and e-Governance Bill, which Dr. Tijani described as long overdue. The bill aims to provide a comprehensive legal framework to facilitate innovation, fair competition, and sustained growth in the digital economy.

It also seeks to “enhance the use of digital technology to support growth and transformation of Nigeria’s Economy through application and use of digital technology in all facets of life in Nigeria.”

“There is no clear legislation pushing competition and ensuring development in the digital space,” Tijani said, highlighting the bill’s ability to fill this gap.

The bill’s significance was reiterated by Senator Shuaib Salisu, Chairman of the Senate Committee on ICT and Cybersecurity. Salisu stressed that ICT is not just another sector but a foundational element upon which other sectors depend. 

He also indicated the importance of media engagement in ensuring the bill’s success, clarifying that it is not about levies or commissions but about creating an enabling environment for the digital economy to thrive.

Hon. Stanley Olajide, Chairman of the House Committee on Digital and Information Communication Technology, agreed to this perspective, describing the bill as important for sustainable development. 

Olajide highlighted the inclusive approach in the bill’s development, emphasizing collaboration with stakeholders to ensure the legislation meets the needs and aspirations of Nigerians.

He pointed out that the bill, which has already undergone its first reading in the National Assembly, aims to establish a regulatory framework for digital literacy, skills development, enhanced cybersecurity, and innovation.

Further adding to the discourse, the Director-General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, through his representative Emmanuel Edet, described the bill as an enabler for integrating digital technologies into daily life and governance.

Inuwa emphasized the need to leverage the growing digital industry to drive economic desires, leveraging Nigeria’s youthful population and growing digital skills.

The bill, structured in 16 parts with over 60 sections, addresses a wide range of topics, including the validity of electronic transactions, digital contracts, signatures, and time stamps. It also focuses on consumer protection for digital transactions and the use of emerging technologies such as artificial intelligence and blockchain for public services.

As part of the legislative process, the Ministry of Communications, Innovation, and Digital Economy announced plans to release the updated bill by July 23, 2024. 

The ministry will engage stakeholders nationwide, including public services, regulators, innovators, and service providers, to gather feedback and ensure the bill’s relevance and applicability. Technical workshops will also be held to refine the draft and incorporate expert opinions.

The post National Digital Economy and e-Governance Bill Central to ICT Sector’s N18.3b Revenue by 2026 appeared first on Tech | Business | Economy.

The first quarter of 2024 alone recorded $191.57 million in FDI, outweighing the $134.75 million recorded for the whole of 2023. 

Minister Tijani commented that this noteworthy growth stresses the sector’s strong prospect and reveals the devoted hard work of all stakeholders involved.

“This growth in FDI is about confidence in the potential of our sector and a reflection of the hard work that all ICT stakeholders have put in to ensure that we reverse the slowdown in our sector so that it remains a catalyst for growth.”

According to Tijani, the data from the National Bureau of Statistics (NBS) shows a positive drive for the telecom sector and the economy at large. 

This influx of FDI reiterates investors’ confidence in the sector’s future and the focused efforts to reverse the slowdown experienced in previous years. The minister noted that the telecom sector remains a stimulus for growth within the Nigerian economy.

“The data from @NBS_Nigeria continues to show a positive growth trajectory for our sector and economy as a whole. With over $191 million in Foreign Direct Investment (FDI) in Q1 2024 alone, we have already surpassed the total FDI into the Telecommunication sub-sector for the whole of 2023.”

Beyond the telecom sector, the overall FDI into Nigeria for Q1 2024 amounted to $3.376 billion, representing 86% of the total FDI for 2023. This figure stresses the strategic importance of the telecom sector in attracting foreign investments.

Minister Tijani is optimistic about building on this momentum as the country moves into the second half of the year. He highlighted the importance of the reforms and policies implemented by President Bola Ahmed Tinubu, aimed at stimulating inclusive growth in the digital economy and the broader economic industry. 

“As we start the second half of the year, I’m looking forward to building on this momentum supported by the necessary reforms and policies that President @officialABAT is putting in place to stimulate inclusive growth in the digital economy and the broader economy.”

These initiatives are expected to continue facilitating a favourable environment for investment and innovation in Nigeria’s telecom sector.

The sharp increase in FDI shows the effectiveness of the government’s recent strategies and the collaborative works of various ICT stakeholders. 

These sustained efforts and carefully laid out policies will ensure increased investments in the telecommunications sector, ultimately boosting the country’s economic growth.

The post Telecom Sector’s $191.57m Q1 2024 FDI Growth Excites Bosun Tijani appeared first on Tech | Business | Economy.

The total capital importation for Q1 2024 stood at $3,376.01 million, an increase of 198.06% compared to the $1,132.65 million recorded in the same quarter of the previous year. 

In Q1 2024, the composition of capital importation showed a prevalent preference for portfolio investments. These investments amounted to $2,005.59 million, representing 61.48% of the total capital importation. 

This was followed by other types of investments, which accounted for $1,181.25 million (34.99%). Foreign Direct Investment (FDI) contributed the least, with $119.18 million, making up 3.53% of the total.

The quarter-on-quarter analysis revealed that compared to Q4 2023, where the capital importation was $1,088.48 million, Q1 2024 saw a rise of 210.16%. This increase points to the growing attractiveness of Nigeria as an investment destination.

The report also delves into the origins of these investments, with the United Kingdom leading. 

Investments from the UK amounted to $1,805.83 million, constituting 53.49% of the total capital imported. 

Following the UK, the Republic of South Africa contributed $582.34 million (17.25%), and the Cayman Islands provided $186.21 million (5.52%).

Lagos State emerged as the prime destination for these investments, attracting $2,782.41 million, which is 82.42% of the total capital imported. 

Abuja (Federal Capital Territory) followed with $593.58 million, accounting for 17.58%. Notably, Ekiti State received a minimal share of $0.01 million.

The sectoral analysis shows that the banking sector attracted the highest capital inflow in Q1 2024, with a total of $2,067.44 million. This was followed by the trading sector, which received $494.93 million, and the production/manufacturing sector, which garnered $191.92 million. 

The increase in capital importation is a positive indicator for Nigeria’s economic health. It indicates a renewed confidence among foreign investors in the country’s economic stability and growth potential. The influx of capital is expected to spur economic activities, create jobs, and contribute to overall development.

While the data from Q1 2024 is promising, it is important to sustain this momentum. The need for continuous implementation of investor-friendly policies and addressing underlying issues that could deter future investments is key.

Understanding the drivers behind this surge in capital importation will be essential for maintaining and enhancing Nigeria’s attractiveness to foreign investors.

The post Lagos Leads as Investment Destination in Nigeria’s Q1 Capital Importation Report, Up 198% – NBS appeared first on Tech | Business | Economy.

The Federal Executive Council (FEC) approved the conversion of a government property in San Francisco, USA, into the Nigerian Digital Technology Exchange Programme Hub, also known as the Nigeria Startup House.

This move aligns with the Ministry’s vision of establishing Nigeria as a major player in the global tech sector. 

The hub will serve as a platform to attract Foreign Direct Investment (FDI) by providing access to international organizations and venture capital firms concentrated in the San Francisco Bay Area, an innovative hub for startup funding. 

This strategic location is particularly key considering that a good portion of the $1.3 billion raised by Nigerian tech startups in 2023 came from Bay Area VCs. 

Again, the Startup House will enhance the visibility and recognition of Nigeria’s growing startup sector. This increased exposure will make Nigerian startups more attractive to potential investors and collaborators, facilitating a more productive and interconnected tech industry. 

Ultimately, the initiative aims to promote Nigeria’s economic interests by stimulating connections and collaborations with international players, driving the country’s growth within the global technology space.

The San Francisco Bay Area, encompassing Silicon Valley, has a combined GDP exceeding $929 billion and houses over 200 of the world’s leading companies by revenue. This proximity to a thriving tech sector makes it a great location for the Nigeria Startup House.

While the Federal Government, represented by the Ministry of Communications and Digital Economy (FMCIDE) and the Ministry of Foreign Affairs (MFA), will retain ownership of the property, a consortium of Nigerian tech companies will manage its operations through non-public funding.

The post Nigeria Sets Up Tech Hub in San Francisco to Boost Startup Ecosystem appeared first on Tech | Business | Economy.