Meanwhile, U-Law said it is set to assist startups to tackle this challenge.

Held on Friday, November 28, 2025, the themed forum, “From Local Genius to Global Demand: Powering Startups with Innovation, Funding, and Market Access”, brought founders, investors and operators into one room for an insightful conversation on scaling responsibly. 

More than 60% of Nigerian startups never make it past 10 years, with many failing within just two. Beyond the usual challenges such as funding gaps, capital limitations, and weak market insight, U-Law pointed out one problem almost every founder underestimates: legal compliance.

Startups think first about raising capital, but ignore the “simple agreement between myself and my co-founder” until it becomes a threat. Founders were warned about building products without defining who owns the IP, operating in regulated sectors without licences, or onboarding employees without contracts. 

Some startups have stalled because a CTO resigned, claimed ownership of the product, and refused to sign over rights. One of U-Law’s goals is to prevent situations like this, ensuring that startups scale properly and avoid the mistakes others have made in the past.

That urgency framed the rest of the afternoon.

PANELLISTS BREAK DOWN WHAT REALLY DRIVES SCALE

The discussion featured Subuola Oyeleye (Founder/CEO, Beauty Hut Africa), Victoria Fabunmi (National Coordinator, ONDI), Chidimma Uzoma (Founder, Zayith Food Company), and Folasade Dapo (Head, Legal & Investor Relations, CCA). 

Each shared practical insights about growth, capital, governance and the realities of operating in Nigeria.

Building structure before raising money

Oyeleye, whose company recently turned two, said she planned from day one to build a venture-backed business. That meant installing clarity, not confusion:

“Investors fund clarity and not chaos.”

She recalled being asked for supplier contracts and internal processes by investors, documents many competitors don’t even have. She stressed that founders must think like investors: contracts, compliance, risk management, spend control, clear financials, and documented IP must exist early.

VC is not the only route, founders need blended capital

Dapo dismantled the idea that every founder must chase venture capital.

She explained the different funding paths available, including angels, family offices, grants, foundations, government-backed credit lines, and debt, and urged founders to know their “investor universe”.

“It’s not the only way to fund.”

She emphasised that not all investors fit every business, and founders must learn which ones belong in their “universe”.

Manufacturing founders can raise money too

Uzoma addressed a common misconception: that manufacturing is unattractive to investors. She stressed that the investors exist, founders just don’t look for them.

She urged traditional businesses to adopt a blended funding approach combining grants, equity, and debt. Her company runs all three concurrently.

On Nigeria’s infrastructure failures, she explained that manufacturing cannot rely on erratic power. Her company runs “the hard way”, funding generators to keep cold-chain operations running 24/7. She noted recent policy discussions on industrialisation and said power remains the single biggest limitation.

On logistics, she said partnerships saved them. “We would not invest in an area that somebody is already running as a business and is giving us a great price point.”

Investors look for more than decks

Fabunmi outlined what investors actually review beyond pitch slides and projections. Founders with discipline, accountability, openness and the mindset for scale. She underlined three areas: intentionality, resilience, and mindset.

Fabunmi also said investors increasingly want founders who can build beyond their local markets, founders who understand scale in the context of AfCFTA and global competition.

STRONG FACTS ABOUT GOVERNANCE

The Q&A session pushed further into governance, where many Nigerian startups fail after raising capital.

Dapo said one of the biggest issues investors encounter is poor corporate governance:

“You can have the best business model, but if you back the wrong founders, it doesn’t matter.”

The panellists at the U-Law Black Friday forum noted the basics that must be in place even before investment:

• Company registration
• Correct licences
• Tax registration
• Compliance obligations
• Contracts for employees and suppliers
• Accounting and finance systems
• Bank account separation
• A simple functional board
• Delegation of authority
• Clear mission, vision, and performance tracking

Corporate governance isn’t a waste of time, she stressed; it is what keeps founders accountable and makes businesses investable.

BUILDING TEAMS, LETTING GO AND RETAINING TALENT

Oyeleye tackled the difficulty founders face when releasing control. “Scaling does mean letting go, but letting go means creating structure.”

She said Nigeria’s labour market usually requires hand-holding because skills vary widely, so founders must create clear SOPs and train teams.

On employee turnover, she said culture helped Beauty Hut retain staff. Exit interviews revealed basic issues like long commutes, which brought about new hiring strategies.

Uzoma added that younger employees move faster, but businesses should prepare for that with succession plans. Her approach:

“Every manager has an exec, every exec has an assistant… so that it’s easier for people to live and leave without disrupting the system.”

THE NIGERIAN ADVANTAGE — RESILIENCE

Fabunmi wrapped up with a perspective foreign investors sometimes overlook: Nigerian founders are already hardened by the environment.

“Because we’ve suffered a lot here, it’s easier for you to take more to the market.”

She argued that the challenges in Nigeria sharpen entrepreneurs, making them bolder in other markets.

U-LAW CLOSES WITH TAX REFORM GUIDANCE

The session returned to U-Law, this time focusing on the 2025 tax reform regime. The team explained upcoming changes:

• Nigeria Revenue Service replaces FIRS
• New small-business thresholds
• Changes to company income tax bands
• New 4% development levy replacing several older levies
• Personal income tax rising to 15%
• Capital gains tax tied to income bands
• VAT exemptions for small companies
• Mandatory registration and monthly filings for virtual asset service providers
• New incentives for angel investors and VCs under the Startup Act

U-Law advised SMEs to register early, file required returns, and use available exemptions as the firm introduced its compliance calculator, designed to help startups understand their tax obligations.

THE BIG PICTURE

The U-Law Black Friday forum highlighted that Nigerian founders must build properly if they want to scale, and U-Law intends to be the partner guiding them through compliance, governance, agreements, tax, and structure.

In a country where resilience is high but failure rates are higher, U-Law says start right, structure early, scale without trouble.

The energy in Nigeria’s tech scene is strong. Over the last 10 years, a new generation of innovators has emerged across Africa, from Nairobi to Cape Town. They are building solutions for their own communities rather than for distant markets.

Yet the question remains: can Africa go beyond just using imported technologies and actually develop the next generation of homegrown solutions that can scale globally?

The signs are promising. Africa’s digital economy is projected to reach $180 billion by 2025 and as much as $712 billion by 2050. In just the first five months of 2025, startups across the continent raised more than $1 billion in funding, with Nigeria leading the pack.

But behind the headlines lies a deeper challenge: to ensure this growth is not just about foreign investors backing familiar fintech models, but about unleashing the continent’s full innovative potential.

Building for Local Realities

Imported solutions have long struggled to meet Africa’s unique needs and will continue to do so. A payment system designed for Europe’s smooth banking infrastructure, for instance, fails in areas where cash is dominant and internet access is unreliable. This gap, however, has opened the door for local innovation. M-Pesa in Kenya changed the game for mobile money, providing financial access to millions without bank accounts. In Nigeria, LifeBank has digitised blood supply chains, linking thousands of hospitals with vital resources.

These are not mere copies of existing models; they succeeded because they were designed for the specific realities of African societies.

They show that real change occurs when technology is tailored for the local context. At Quomodo Systems Africa, we have always believed that Africa’s strength is not in mimicking Silicon Valley but in tackling African issues with homegrown solutions. Whether in healthcare, agriculture, or logistics, successful entrepreneurs will be those who best understand their environment.

There is also a need for more strategic handshakes between entrepreneurs and the government in developing suitable policies that promote business growth. Nigeria’s Startup Act, enacted in 2022, marked a significant step forward, establishing a legal framework to help founders access funding, incentives, and clearer regulations.

Similar initiatives are appearing across the continent, showing that governments recognise technology as a key driver of growth.

However, policy frameworks are just the starting point. Implementation is more important. Too much funding still goes into fintech, leaving other important sectors lacking support. At the same time, infrastructure issues are severe: broadband access in Africa is only 37 percent, and in Nigeria, power outages can disrupt innovation just as much as inadequate investment. Without affordable internet, reliable electricity, and good logistics, even the brightest ideas can struggle.

We must find a way to keep our best talents within the shores of our country and also build a system that allows them to thrive. Nigeria, with an average age of just 16.9 years, has a lot of potential. Yet brain drain is a worry, as many talented individuals move abroad for better opportunities. The challenge lies not only in producing more skilled engineers but also in fostering an environment where they want to stay, build, and grow.

From Local to Global

If nurtured properly, Africa’s startup ecosystem could mirror the path India took with IT outsourcing. India’s industry, worth more than $245 billion today, grew out of deliberate investments in education, skills alignment, and export-oriented policies. Africa, with its demographic dividend, has the raw material for a similar transformation.

Nearly 70 percent of its population is under 30, compared to ageing populations in much of Europe and Asia.

Already, global tech giants are paying attention. Microsoft and Meta have invested heavily in African hubs, while European firms such as Telesoftas have set up operations in Lagos after successful talent partnerships.

For Africa, the goal should not just be to host foreign branches but to grow indigenous giants that can compete internationally.

The success of Nigerian unicorns like Flutterwave, Interswitch, and Andela proves this is possible. Each began by solving local problems but is now recognised on the global stage. The next wave must broaden beyond payments into health, education, green energy, and agriculture, sectors that define Africa’s development trajectory.

Reframing the Narrative

Perhaps one of the biggest challenges is perception. Too often, Africa is viewed as a recipient of aid rather than a producer of innovation. This narrative undermines investor confidence and obscures the remarkable successes already unfolding on the ground. Every startup that scales, every engineer who excels abroad, chips away at outdated stereotypes.

At Quomodo Systems Africa, we see part of our role as telling this story differently: championing African innovation, advocating for supportive policies, and helping local startups position themselves not just for survival but for global relevance.

Scaling Africa’s startup ecosystem will require collaboration across borders and sectors. Governments must commit to consistent, innovation-friendly policies.

Investors must show patience and an appetite for risk. Entrepreneurs must keep building with context at the core, not imitation. And the diaspora must remain engaged, bringing back skills, networks, and capital.

If these pieces come together, Africa could leap from being a fast-growing market to a global tech powerhouse. The stakes are not abstract. They are about jobs for millions of young people, better healthcare for families, more efficient agriculture for farmers, and a stronger, more resilient economy for the continent.

The shift from adoption to innovation is already underway. The question is whether we can scale it fast enough. The potential is undeniable. The opportunity is urgent. And the time to act is now.

*Oluwole Asalu is the Founder and CEO of Quomodo Systems Africa, a thought leader dedicated to advancing Nigeria’s ICT ecosystem and fostering innovation across the continent.