Is the Nigerian Tech Sector on the Right Path?

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The last couple of weeks have been rather exciting for many in the Nigerian tech space. The visits of Mark Zuckerberg and the CEO of Y-Combinator have definitely put Lagos (and Nigeria) on the map as one of the frontier markets that you should ignore at your own peril. But now the excitement of the visits has worn off, I feel we should ask whether the local tech industry is on the right path to becoming an important part of humanity like America’s Silicon Valley.

Naturally, there are arguments on both sides of the question.

Many times I find myself on the depressing side of the question, and I’m not a pessimist (at least, I hope I’m not). All around us, there are huge problems facing Nigeria (and Africa) that are begging for solutions. There are current ways of doing things in almost every sector in Nigeria that are ripe for disruption. Why aren’t there more startups thinking big? Why are we more eager to launch another e-commerce website, or another ride-sharing app, or another unsecured lending company, or another tech blog, or a clone of something that doesn’t have real application in our particular situation, etc.? I know our local tech sector is relatively young, but sometimes I feel we are quickly losing the ambition and boldness to embrace huge, daring ideas and tackle big, meaningful problems. Of course, we are far away from working on the Hyperloop and sending people to Mars, but the mentality ought to be the same. Yes, artificial intelligence and virtual reality can solve some of the big challenges we are facing, and more people should be working on these. It should feel (and really be) that we are pushing the envelope towards real innovation. At the moment it feels that the future of the local tech industry is being engulfed by that putrid complacency that has sent some aspects of the Nigerian economy into a state of uselessness.

I feel it’s time to have this conversation, and hold each other accountable. What are your views?

True, products/solutions are just one part of the ecosystem. But let’s leave the other matters of funding, incubation, etc. for another day.

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At least 98% of the times I’ve checked a product label I’ve seen made in China not made in silicon valley…

the only huge problem facing Nigeria is Nigeria.

#IS IT YOUR MONEY…

Because some people have been successful in creating profitable e-commerce websites, tech blogs. e.t.c.

stop believing that nonsense, in my opinion space is not real :smiley:

Innovation is expensive and time consuming… the average Nigerian techie needs monthly income not big challenges…

Again innovation is time-consuming… Some aspects of the Nigerian economy are only in a state of uselessness if you (A Nigerian) make it that way because other countries can stop importing Nigeria products imagine if Galaxy note 7 was a Nigerian product :laughing: …

Nigeria does not have special schools that trains and grooms kids(people below 10) on how to do things… you can’t compare a 22 years old computer science graduate who started learning how to code at 17 to a 22 years old self taught programmer who started learning to code at 5…

To answer your question
No its on the wrong path, we just have to get Nigerians involved before Nigeria gets completely overrun by foreign tech companies and foreign venture capitalists… or we start paying ₦2000 for $1 in the nearest future…

we didn’t get Nigerians involved in the telecoms biz early now see how much MTN makes from Nigerians… Etisalat is doing well by staying out of trouble.

we didn’t get Nigerians involved in the shopping biz now Shoprite is just expanding UPandDaaN I’m hearing Walmart is about to enter too…

Nigerians were already involved in the eatery biz but the fucking govt allowed KFC into the economy… ARE YOU FUCKING KIDDING ME???…

what’s the point of starting a business then the fucking govt approves multi-billion dollar foreign competitors into the fucking local economy of a country that its fucking economy has been fucked up by the same fucking multi-billion dollar foreign competitors… then the fucking govt gives its citizens spending limits, inflation, increased school fees, expensive data plan, epileptic power supply.e.t.c …

the only people enjoying are the people been sponsored by the same fucking multi-billion dollar foreign competitors.

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I think we’re on the right path.

First of all, we can all agree that our educational system is not equipping us for the future. And that’s a great understatement. Which means that the ‘me-too’ startups you’ve referenced are possibly the best way of preparing founders to tackle big, meaningful problems, in the future.

But we do need to start somewhere.

Also worth pointing out that if one looks carefully (I’ve not bothered to do so), I suspect a lot of the founders doing meaningful things in Nigeria (similar to other parts of the world), have worked on ‘me-too’ projects in the past. We need those skills. Right now, if a startup needs to ~5000 engineers, can they find them?

Secondly, and even more importantly, a sector being ripe for disruption doesn’t mean it has a market.

Factors which provide you a market include internet penetration (can you reach them), purchasing power of segment (can they afford) it), expanded middle class (usually early adopters), etc are still work-in-progress. I don’t feel we’ve lost ground, as long as a generation of people can equip themselves with the right skills.

To summarise, we’re on the right path. When you meet that founder working on that clone, wish him well. Hopefully, it all comes full circle in the end.

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asectorbeingripefordisruption2c0adoesn27tmeanithasamarket-default.png550×550 9.42 KB

Frame this! People. Frame this. :walking:

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@PapaOlabode, @gabe: Isn’t the purpose of disruption to CREATE new markets?

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What is the point of this truly? if its not on the right path u wont see VCs running to open Lagos office because they see patterns and follow the money. End of Discussion, bye.

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Lol @ disruption! I think it’s reasonable to assume we’ve all read the same blogs, books, articles, and expert opinions. etc.

From the factors, I’ve mentioned above, if a team is backed with $100m from blue chip investors, have a stellar team etc. it doesn’t mean they can magically create a market. This is not conjecture, it’s happened in real life - on numerous occasions.

I have a very strong but simple thesis on what our market needs - time. I wrote a post about it as well.

And to be clear, I agree that we should be more audacious in vision but from the tech angle, those building blocks which it appears you don’t think it’s important, are actually fundamental. For example, Konga who probably have the largest dev team have a number of ex-founders working as engineers.

If I rephrase my developer question, while lowering the bar, can we get 1,500 team in a startup right now? Well those folks need to learn the needed skills in some way. And working on their me-too startups is probably the best.

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I think, those observing recent events and believe that there is an overarching trend rather than more nuanced occurrences will miss what exactly is happening.

Major investors/entrepreneurs came to Nigeria after they had invested in “Nigerian companies.” That means they were attracted by the opportunity those entrepreneurs presented to them and they invested. They came around to do two things:

  1. Have an idea of what the market looks like and understand the nature of demand firsthand

  2. See if there could be more entrepreneurs like those they had already invested in or if entrepreneurs from outside can tackle the opportunities better. There sadly is no geographical monopoly in innovation.

The bottom line for these investors is actually “making more money.” It was not a charity tour or ego boosting activity. They were not seen at Owambe parties giving out cash.

What does that do for the other local entrepreneurs? It gives them a valuable currency for innovation - “Hope.”

Hope is very essential. Without hope, our parents would not have sent us to school to learn the English language we are using to write things here on Radar. Without hope, we will not be doing any of the things we are doing today.

Hope is a driving force. Hope is also what makes the market also want certain products and allows entrepreneurs to make outsize returns. Sometimes, hope makes more money than “needs.” I am sure that Facebook is not solving World hunger or our major housing problems. I don’t think Google is directly responsible for all Global philanthropic activity, but they both have become very valuable companies and platforms. They have a common currency driving them which is advertising dollars. Advertising largely sells hope to people and the dollars power platforms that people can use to meet needs.

Hope creates new markets, the returns from those markets are used to solve problems.

I will not be too quick to dismiss anyone building anything that has demand in a market. If there is no demand, ventures will die. These things are like clockwork. Money also follows aggregate demand. It is irrespective of the driver of such demand. “Hope” or “Need” can both can create demand, but usually the returns from hope come faster. That is why returns from 140 characters will fund flying cars later.

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I think it’s on the right path. But I don’t agree that VCs opening Lagos office is what makes it so. Everybody (including VCs), acknowledges the herd mentality of investing. Following patterns is what they do.

So to go back to OP’s original question, VCs interest at best is a lagging indicator. It doesn’t mean it confirms we’re on the right track.

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Nigeria is a country of immense contrasts. It exports world class talent but it is a wasteland of generally stupid leaders who have not spent enough investing in the people. To the Europeans it probably reminds them of India. Great potential but serious problems.

But for Nigeria the money being pumped into the ecosystem by Y Combinator, Zuckerberg foundation (via Andela) and the Kinneviks and Tiger Globals will create world class tech companies. It will create world class local engineering foundation.

What Nigeria does with it will depend on what the startup founders do. So far they have imitated rather than innovated. Perhaps the best will tire of poverty and use their skills to emmigrate to the west. But if they stick around, in the second stage (at least 10 years away) you will see the world class creativity Nigerians are known for.

Its still morning yet on creation day.

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@Freshboi_Ekundayo always looking out for discussions to end :grinning:

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YES BABA OOO, Why waste all the energy to type when we can just let him ask a Rhetorical.

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Yes I agree with the ending part of your comment.
Our government keeps looking for FDI to come and do what we can already do in Nigeria.
If they had backed EasyTaxi or TransitTaxi, they would have been just like Uber in W.Africa.
Why not support Ebeano or Globus into creating a chain of Supermarkets like Sainsbury, Aldi, Lidl?
Must only SAs and Indians build Malls in Nigeria? By Malls I mean Westfield Stratford, London or Mall of America kind of Malls with various entertainment not storey building with bloody shops in it.
Then they blame these foreign countries for repatriating profit. That was always their plan, dumbasses!

Whenever I talk against foreign companies, I get talked down but these companies kill entrepreneurship and innovation because we can’t compete with them. No funding or government support. TP Link enjoys subsidies from its government that is why they can sell crappy routers to us at very cheap prices. How do you want to compete with Huawei when they have all our Telcos and our FG eating out of their hands.

Anyway we are gradually moving on the right path. There’s this strong tendency though to copy what already looks successful instead of seeking original solutions to other problems in Nigeria. So many e-commerce and Payment processing solutions. So many food delivery services…the same stuff. We don’t have mind yet to jump into new ventures like the transportation problem in Lagos.

Whoever solves this (and I don’t mean another bloody app warning people about traffic) transportation problem in Lagos will never be forgotten. Sometimes delve into Hardware solutions. It is expensive but Tech will not be complete without hardware.

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