The New Economy of Africa: Opportunities for Nigeria’s Emerging Technology Sector

Nigeria has a vibrant and growing tech sector. Large firms are delivering services in healthcare, agriculture, and finance while smaller firms are providing e-commerce platforms and other retail-related services. In a survey of tech firms conducted in 2018, we find that most firms start small but grow quickly, more than doubling their size in the few years since the start of operations. Many are addressing inefficiencies in distribution of goods and services. But firms are still hampered by the business environment, notably unreliable electricity and lack of access to credit. Most suffer significant power outages, forcing them to purchase generators. Few firms have access to financial institutions or venture capitalists, relying instead on family and professional networks. Finally, tech firms employ very few women. While the Nigerian government has made the tech sector a priority, it needs to do more to improve the basics of the business environment. The government and the private sector must also take steps to increase the participation of women in the tech sector.