Tech opportunities for the Nigerian economy

As one of Africa’s biggest countries and the largest economy on the continent, Nigeria is a force to be reckoned with. On the world stage, Nigeria is no slouch either, with the planet’s 27th highest nominal GDP and coming in 24th on the global purchasing power parity scale. 

In the first decade of the 21st century, it is estimated that GDP per capita in Nigeria doubled. 

The country has, traditionally, been heavily reliant on established industries like the extraction of fossil fuels, mining, agriculture, and industrial production, but it has been quick to embrace technology as well. 

It has the third-highest internet penetration rate in Africa, behind only Libya and Kenya, with 73% of Nigerians possessing at least one way of getting online. 

Combine this with the country’s young demographics, and Nigeria has the fertile ground in which a blooming tech sector can be grown. This is how it has become the fastest market in Africa, with 90 tech hubs dotted around the country. In recognition of this, many of the world’s tech giants, including Microsoft, CISCO, IBM, and Google, all have a presence in Nigeria. 

According to the Center for Global Development, boosting digital skills could help the Nigerian tech sector to create many more jobs for the country’s citizens. There are several areas of technology that these positions could be created in, as multiple opportunities exist for the sector within Nigeria. 

Fintech

Financial technology (fintech) companies have been disrupting the traditional banking sector for several years now. They are strongest in Europe and the US, and have developed a wide range of different products from peer-to-peer lending platforms to digital banks that offer lower fees, innovative features, and modern mobile-first interfaces. 

Some have even created entirely new categories, such as Curve, which is an “over the top” platform that connects all your bank accounts and credit cards together to make it easier to control your finances. 

In October 2021, Nigeria launched the ENaira, a central bank digital currency, which is just one example of the country embracing fintech opportunities. Mobile payments are more popular in Nigeria than many other parts of the world too and, earlier this year, regulators set a flat fee for these transactions to help make them more accessible and affordable. 

Gaming

Being one of the biggest countries and economies in the region with some of the best internet infrastructure, it is little surprise that gaming is popular among Nigerians. The Sony PlayStation range is the most popular console in the country, though mobile gaming has become much more common in recent years. 

While Nigerians had previously played titles mostly from international publishers, there is a growing market for home-grown content. Local developers like Maliyo Games have been creating titles like Okada Ride, which is set in Lagos. 

There is still a lot of room to grow though, especially if local developers can build a stronger share of the market. 

Online casino games could also be a big opportunity for the Nigerian economy, though the market is currently very small. In countries like the UK, where demand is strong, billions are generated by iGaming companies each year. They’ve achieved this success by creating numerous variants of classic games, such as the live, multiplayer, and mobile versions of roulette that help to cater to a wide range of different customers. 

Cleantech

Countries that have economies heavily reliant on petrochemicals can find it hard to wean themselves off their black gold. Diversification is vital though, both for the long-term prosperity of the nation and the sustainability of the planet. 

The opportunity of exploiting the abundance of solar energy available in Nigeria has been talked about for several decades, though following through on this has been more difficult. In 2021, the Nigerian government began an initiative (that was announced last year) to provide solar panels to 25 million Nigerians that are not currently connected to the national power grid. 

On its own, the development of new green energy sources could add significant value to the economy, but providing cheaper and better energy supplies to remote regions of the country could help to better connect them so that they can trade and communicate more efficiently.