For many economists, Nigeria is an economic giant with feet of clay. Instability weakens the foundations of its development. The rise of the Boko Haram sect, corruption, open lobbyism are all manifestations of this weakness that the country must overcome to ensure the sustainability of its growth. Despite these observations, Nigerian start-ups are nevertheless flourishing and are a model of success often copied, which is why EcceAfrica deciphers the fundamentals of this success.
Successful political changeover
The current president of Nigeria, Muhammadu Buhari came first with 54% of the vote. This successful political changeover is an undeniable asset, the scope of which can be measured by looking at the past of a neighboring country in Nigeria, the Ivory Coast. It is obvious that overall economic activity and international investment are doing better where there is a democracy built on continuity.
Since 2013, the population of Nigeria has crossed the 175 million mark. In terms of consumption, this represents an important market in the fields of agriculture, food, agro-food processing, housing, etc. in short, in all areas which relate to the satisfaction of primary needs. If we also consider the capacity that this population represents in the world of work, it is easy to understand that Nigeria has the human resource to create but also to consume.
The explosion of the middle classes
A web-documentary directed by Philipe Couve highlighted the emergence of the middle classes and their impact on the country’s economic development. It’s interesting to know that they have a very interesting power comparable to a butterfly effect but this time from a financial point of view. In Nigeria, this middle class represents 23% of the population, that is to say that this share of the Nigerian population has stable purchasing power and meets all the conditions for accessing services even if they are developed in line.
Consumption focused on local production
In addition to being numerous, there is a respect among Nigerians for local production. To measure it, it suffices to observe the consumption habits and the number of transformation structures that are born in the country and develop. The Nigerian population is focused on its market, which offers start-ups a very real target.
We are witnessing a veritable proliferation of ideas. Nigerians are inherently enterprising. It’s a question of resilience. They are often on the lookout for the good idea that will make them wealthy because from a cultural point of view Nigerians see the acquisition of wealth as an injunction.
In the city of Lagos, the country’s economic lung, one can perceive this culture just by observing the economic landscape. The buzz of economic activity is linked not only to the large population but above all to the share of people who take part in it.
Bankole Oloroutoba promoter of start-ups in Nigeria told the World that Nigerian entrepreneurs “all share this very strong tenacity, a desire to succeed that is found a lot in Nigeria, this little extra that makes our young entrepreneurs among the most hardworking people in Africa. We are patient, we know how to take the hard knocks and above all we learn more and more quickly to put the turbo as soon as we detect an opportunity, a new niche to develop. “
The technology boom
A study has shown that there are more laptops than humans in Lagos (this finding was justly an argument for the creation of a repair company “SuperGeeks”).
An average Nigerian has two cell phones and internet access. A situation which favors the creation of online services such as e-commerce. Indeed, the technology boom is creating a framework and the conditions that give start-ups a head start compared to some countries where internet access is a real problem.
The dynamic digital ecosystem
It is not enough for people to have internet access. Start-ups that use the internet as a weapon need to know how to use it. And in Nigeria they easily achieve this thanks to the numerous incubators and Hubs which ensure their secure maturation.
It should also be noted that Nigeria alone is home to the two most important technology and innovation competitions in Africa, namely: DemoAfrica and SheleadsAfrica, a competition reserved exclusively for women. A proven asset.
Start-ups that provide solutions to common problems
The main advantage of start-ups in Nigeria is that they echo an existing need by providing a solution accessible to the greatest number. This is the case of Green Energy which reduces dependence on fossil fuel, SimplePay, InstaPay, Konga, digital payment system and online shopping platform for Nigeria …
Nigerian start-ups are the ones that raise the most capital in Africa. determined that in 2014, 24 start-ups managed to raise funds. In Africa, a new record has been broken. This capacity is undoubtedly an essential aid to the development of viable start-ups.