The tech ecosystem in Nigeria in 2021
Nigeria is accelerating as one of Africa’s tech hotspot and is on the list of locations etching a tech environment rapidly.
Being a potential territory for the growth of entrepreneurs and start-ups, the country is also introducing edicts and infrastructure to project a tech-driven economy.
Support from the government and the Nigerian Exchange Group, NGX are some of the areas used to encourage entrepreneurship in the country.
The NGX especially is giving a lot of recognition to startups in Nigeria and having several discussions to provide funding.
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Entrepreneurship in Nigeria is further driving by the unemployment rate with its latest rise to 33.3% for the working-age according to NBS statistics.
A number of unemployed Nigerians have shifted focus to the tech scene and most importantly able to successfully secure fund. As of 2021, there are over 200 tech startups that have risen in Nigeria recounting the last 10 years.
In an inaugural African Tech Ecosystems of the Future rankings by fDi, a section of the Financial Times, Nigeria placed sixth after a series of analysis and consideration of all qualifying locations on the continent.
The report which outlines Africa’s growing tech ecosystems was a team effort with research company Briter Bridges.
Nigeria on fDi ranking
Nigeria stood at sixth place of the inaugural fDi Africa Tech Ecosystems of the Future ranking which saw South Africa top it all.
The country is home to 54Gene, Paystack and more of Africa’s largest investors in tech companies.
Nigeria recorded the highest number of tech start-ups according to Briter Bridges figures and also ranked first in the connectivity category of fDi ranking.
However, it was low on the reception of foreign direct investment (FDI) projects in the software and IT services sector.
South Africa achieved overall first place on the inaugural fDi Africa Tech Ecosystems of the Future 2021/22 ranking.
Kenya took second place, both overall and in economic potential.
African Tech Ecosystems of the Future 2021/22 report by fDi
The qualifying criteria for Nigeria include being home to over 50 startups; having achieved an investment total of over $500 000 for 2019 and 2020 as well as having over nine tech hubs.