Technology
10 Best Places to Create a Startup Hub in Nigeria
Recently, I wrote about the most critical factors to consider before creating a startup hub in Nigeria. While any state government can actually make this happen, there are particularly some cities that could get it done faster within just a couple of years.
As Paul Graham, the most respected authority on startups put it: For the price of a football stadium, any town that was decent to live in could make itself one of the biggest startup hubs in the world. What’s more, it wouldn’t take very long. You could probably do it in five years during the term of one mayor (or governor).
Granted, most of the state governors claim to have ICT development plans but have hardly harnessed the economic benefits and potentials of a technology & business startup culture in certain cities.
With so much attention on diversifying the Nigerian economy from over-dependence on oil, to tourism, agriculture, and other sectors, what better time to focus on developing the “knowledge economy” driven by massive ICT infrastructure development in any given state or city.
According to a post over at LaptopJudge, a “Knowledge Economy” will naturally give birth to a new generation of technology-savvy entrepreneurs with a rare business culture – one that can support the vision of creating a startup hub in any city in the world.
Today, Internet and technology companies such as Google, Yahoo and Microsoft have become some of the largest employers of labour in the United States and have generated huge streams of revenue that has successfully driven the U.S economy.
Can this success be replicated in Nigeria?
Yes. But it would require a lot of effort and investment from the government and the private sector. Interestingly, there are a few states or cities in Nigeria I’ve identified where a “technology” startup hub could easily be created.
I’ll be profiling and analyzing five of these states and cities in this post, so in no particular order, here are 5 best places to grow a startup industry in Nigeria.
1. Ogun State
Located in south-western Nigeria, Ogun State has a 2005 population estimate of over 4 million inhabitants, with Abeokuta as the capital and largest city.
The state has the largest number of universities in Nigeria such as Crescent University, Abeokuta, Covenant University, Ota, Babcock University, Ilisan Remo, Bell University of Technology, Ota, and polytechnics such as Abraham Adesanya ICT Polytechnic, Ijebu Igbo, Gateway ICT Polytechnic in Saapade and Igbesa.
With heavy investment in education, ICT development and infrastructure and an on-going solar power e-learning project, Ogun state looks like a great place for startups to thrive. It had a GDP of $10.47 billion in 2007 and per capita income of $2,740.
Besides, the cost of living and doing business in Ogun state is relatively low compared to Lagos state. For instance, you could get an affordable flat (for office space) in towns such as Mowe-Ofada, Ota or even Abeokuta.
Personally, I think that Ogun state is one of the best places to create a startup hub in Nigeria as it is gradually developing and investing in – infrastructure, ICT and education – some of the key factors needed to create a startup chain reaction.
2. Enugu State
With a population estimate of about 5.6 million people (2005), Enugu state is home to Nigeria’s first indigenous university, University of Nigeria Nsukka (UNN).
An inland state in south-eastern Nigeria, Enugu also hosts the Enugu State University of Science & Technology (ESUT), Institute of Management and Technology (IMT), Enugu State College of Education Technical, Caritas University, Amorji-Nike, Renaissance University, Ugbawka, Our Saviour’s Institute of Science and Technology amongst other learning institutions.
Enugu had a coal industry that use to be one of the biggest employers of labour. In fact, coal was first discovered in the Udi Ridge in the 1900s, led by a British mining engineer named Albert Ernest Kitson, after which Frederick Lugard took keen interest in the discovery and by 1914, the first shipment of coal was made to Britain. Little wonder, Enugu is described as the “Coal City”.
The energy needs of the state could be made a permanent solution with the development of the coal industry and the reactivation of the Oji River Power Station located in Enugu (which used to supply electricity to all of Eastern Nigeria). Even so much so that the proximity of the Enugu coal mines to the power station is only a driving distance of about 20 minutes.
With recent investments in ICT development, infrastructure and a WiFi Internet access project embarked on by the state government with support from Zinox Technologies, Enugu state could become a great startup hub in the future.
3. Lagos State
As the commercial capital city of Nigeria with a population estimated at 18 million inhabitants and the vision to transform into a mega city by 2015, Lagos state is certainly one of the best places to create a startup hub.
No doubt, Lagos has the people – entrepreneurs, investors, researchers, consultants, technology enthusiasts, etc – who could spark up a chain reaction for technology startups in the next few years. Again, the state’s GDP as of 2007 was $33.68 billion and a per capita income of $3,649 which makes it the largest economy in Nigeria.
The University of Lagos at Akoka, Yaba is well-renowned for research and development in technology and innovation and has produced some of the best talents in Nigeria such as Fola Adeola, Dele Olojede, Richard Mofe Damijo and Matilda Kerry.
Lagos also has a well-renowned Business School (LBS), ranked among the top 55 Business Schools in the world by the Financial Times of London (2009), as well as several other institutions around the metropolis, which naturally makes it a place with a business culture.
Even though Lagos is densely populated, cities and towns such as Lekki and Badagry, surrounded by the Lagos Lagoon, bay and beaches, are gradually experiencing property and infrastructural development with expansion plans for Transport, Airport, Free Trade Zone and Golf course, which could eventually make these cities a great startup hub in the future.
Personally, I’d love to see Internet companies headquartered in the Lekki Pennisula (Lekki Bay Area, as I call it) as well as Badagry, Victoria Island and Ikoyi within the next 10-15 years.
4. Cross River State
The state of Cross River with its capital city, Calabar has been acknowledged as the leading eco-friendly tourism spot in Nigeria. With a 2005 population estimate of over 3 million inhabitants and a 2007 GDP of $9.29 billion and per capita of $3, 150, this coastal state located in southeastern Nigeria is a wonderful place to live and build a startup.
The state is home to the University of Calabar and several other institutions and is gradually transforming itself into a world tourist attraction, especially with landmarks such as the Obudu Ranch Resort, Tinapa Business Resort, Calabar Free Trade Zone and the Calabar Sea and Airports which all present great opportunities for business and trade within the region.
Besides, the Cross River State Information Technology Village in collaboration with Microsoft offers the Microsoft Unlimited Potential Programme for the South-South geo-political zone which is delivering IT training to students and inhabitants to keep pace with the technology in today’s competitive business environment.
Tinapa, the first world-class integrated business and leisure resort in Nigeria, located in Calabar with world class facilities and Free Trade Zone could become one of the biggest technology startup hubs in Africa.
5. Rivers State
Rivers State is the second largest economy in Nigeria after Lagos state with GDP of over $21 billion and per capita of $3,965, according to the 2007 CGIDD figures, particularly due to the fact that it is the chief oil-producing and refining state.
The capital city, Port Harcourt which is the main hub of the oil and gas industry in Nigeria as well as the West African sub-region, has a population estimated at 2.7 million for the Urban Area, while the Greater Port Harcourt Area is estimated at about 3.7 million, according to a 2007 population estimate.
The city is home to the Rivers State University of Science and Technology, University of Port Harcourt, an international airport, two seaports (F.O.T Onne and Port Harcourt Wharf), two stadiums (Sharks Stadium and Liberation Stadium) and two refineries.
However, the activities of several armed militants in recent times have made life and commerce in the once peaceful town a dangerous place to live and operate a business. Again, the city has a very high standard of living that could make it difficult for startups to thrive and survive, especially in their first year.
But startups that decide to move there can take advantage of the oil-rich economy and wealthy individuals who reside there, as this could help create a Venture Capital industry.
Besides, with the development of the Greater Port Harcourt which would provide economic growth poles with strong lateral linkages and exerting a positive impact on the economy and leading to a sustained increase of incomes of the New Town regions, the city could grow to become a great startup hub.
My final thoughts
Creating a startup hub in any of these cities will definitely take some time. It would start with each state government recognising the future economic benefits of creating a startup hub and harnessing its early potentials and development.
However, any individual or group of individuals that could start or build an online venture, create auto title loans, secure funding from investors or sell a percentage stake to a global or local technology company, and move to any of these cities could very well cause a sustainable chain reaction for the development of a startup hub.
By the time more and more startups move into an ideal and decent city or town, it could attract a critical mass of people and investors, thereby creating a Venture Capital industry that could drive any startup hub in Nigeria.
Personally, I would love to wake up one morning in the year 2020, tune to CNBC Africa and listen to the news that a local Internet company has been listed on the New York Stock Exchange (NYSE) and the price of the company’s stock has eventually risen 30% to $467.23 per share.
If you find this post helpful, Read my next article – “how to buy a good laptop stand for desk” I’ll be discussing five more potential startup hubs in a future post.
By Dipo Olowookere
To tackle the critical cash flow challenges faced by Small and Medium Enterprises (SMEs) across Africa, investors like P2Vest, Norrsken Accelerator, Afrinovation Ventures, Kaleo Ventures, and 54 Collective (formerly known as Founders Factory Africa), have invested about $1.6 million into Billboxx.
The integrated billing-to-payment platform, founded in 2023, successfully closed the pre-seed funding round, which is a mix of debt and equity, due to its innovative approach and commitment to building a more financially secure future for SMEs – the backbone of the African economy.
Manual invoicing and deferred payments often result in delayed payments, stifling many SMEs, but Billboxx’s integrated billing-to-payment platform streamlines billing processes, reduces inefficiencies from manual invoicing and mitigates the impact of deferred payments.
By providing automated billing and invoicing, secure payment facilitation, and tailored cash flow financing, Billboxx empowers businesses to achieve consistent cash flow and focus on growth.
Since its inception, the company has facilitated over $4 million in invoice payments through its MVP launched in May 2023.
The platform boasts strategic integrations with a leading commercial bank in Nigeria, a prominent African payment gateway, and multiple lending partners, enabling seamless payment facilitation via bank transfers, cards, and financing options.
“Cash flow difficulties are the leading cause of business failures in Africa, with delayed invoice payments being a major contributor.
“Billboxx is dedicated to solving these issues with an integrated platform that ensures consistent cash flow and financial resilience for businesses.
“This funding round enables us to expand our impact and empower more SMEs to thrive,” the co-founder and chief executive of BillBoxx, Mr Justus Obaoye, said.
Another co-founder and chief technical officer, Mr Abdulazeez Ogunjobi, noted that, “Delayed invoice payments pose a significant threat to SME growth and survival.
“Our platform not only streamlines the billing-to-payments workflows but also offers strategic embeddings to expedite payments. We aim to alleviate payment concerns and allow SMEs to focus on their core business.”
One of the investors, Bongani Sithole of 54 Collective, said, “We’re enthusiastic about the innovative work the Billboxx team is building. These 3x founders with successful exits under their belts are leveraging their leadership and business experience to tackle a massive pain point for SMEs across Africa.
“We invested in the company due to the large market size of the opportunity, impressive early traction gained from strong early partnerships with notable large corporates and startups, and the solid tech product the team has developed. We’re delighted to back Justus and Abdulazeez as they continue to scale Billboxx.”
Mr Obaoye and Mr Ogunjobi previously co-founded two startups: Charistouch (Carido), successfully acquired by Cars45, and Fixit45, a spin-off from Cars45.
Their leadership experience in large corporations and scaleups such as Schlumberger, Bolt, and OLX add to their strategic insight and entrepreneurial prowess.
As technology advances, the internet is undergoing a revolutionary shift toward decentralization. Known as Web3, this next phase of the internet is redefining how we interact with digital systems by emphasizing transparency, user ownership, and autonomy.
At the heart of this evolution are Web3 developers—professionals whose expertise in blockchain and decentralized systems is driving innovation and creating exciting new opportunities. Pursuing a Web3 career is not just about adapting to industry trends; it’s about shaping the future of technology. In this article, we’ll explore why Web3 developers are in high demand and how you can step into this promising field.
What is Web3?
Web3 represents the decentralized evolution of the internet. Unlike its predecessor, Web2, where centralized platforms dominate, Web3 leverages blockchain technology to create an ecosystem that is transparent, secure, and community-driven.
Some of the defining features of Web3 include:
- Decentralization: Control is distributed among users rather than being concentrated in a single organization.
- Transparency: Blockchain technology ensures that all transactions and operations are open and verifiable.
- Automation: Smart contracts allow for self-executing agreements, reducing the need for intermediaries.
This paradigm shift has unlocked immense opportunities, particularly for developers who can create, manage, and enhance Web3 applications.
Why a Web3 Career is the Future
- Rapid Growth in Blockchain Technology
Blockchain is no longer just about digital currencies; its applications have expanded to include finance, healthcare, logistics, and gaming, among others.
This rapid adoption is driving an unprecedented demand for Web3 developers to build decentralized applications (dApps) and integrate blockchain solutions across various sectors.
- High Demand and Competitive Compensation
The demand for Web3 talent has outpaced supply, making it one of the most lucrative fields in tech. Web3 developers often earn significantly more than traditional developers due to their specialized skills.
Many roles offer remote and flexible working arrangements, enabling global opportunities.
- Opportunities for Innovation
Web3 is still in its infancy, making it a playground for innovators. From creating decentralized finance systems to building virtual economies in the metaverse, developers have the chance to work on groundbreaking projects that redefine industries.
Key Skills for a Successful Web3 Career
To excel as a Web3 developer, mastering certain skills is essential:
- Programming Knowledge: Proficiency in languages like Solidity, Rust, or Go, commonly used in smart contract and blockchain development.
- Blockchain Fundamentals: A deep understanding of how decentralized networks function and their architecture.
- Smart Contracts: The ability to design and implement self-executing contracts.
- Cryptography: Knowledge of encryption techniques to ensure security in applications.
Soft skills such as adaptability and problem-solving are equally important, given the fast-paced nature of the industry.
Benefits of Pursuing a Web3 Career
A career in Web3 comes with a range of unique advantages:
- Global Reach: The decentralized nature of Web3 opens doors to international opportunities without geographical limitations.
- Future-Ready Skills: Web3 expertise is increasingly sought after, offering a secure and sustainable career path.
- Collaborative Ecosystem: Unlike traditional tech environments, Web3 thrives on open collaboration and community-driven development.
- Freedom to Innovate: Developers have the flexibility to experiment and contribute to transformative projects.
Steps to Start Your Web3 Journey
Breaking into a Web3 career may seem challenging, but with a focused approach, it’s entirely achievable. Here’s how to get started:
Understand the Basics
- Learn the core concepts of blockchain technology, decentralized systems, and smart contracts.
- Explore educational resources, tutorials, and online communities for foundational knowledge.
Develop Technical Skills
- Master programming languages and frameworks commonly used in blockchain development.
- Familiarize yourself with Web3-specific tools and libraries to streamline your workflow.
Build Projects
- Start small by creating basic decentralized applications or experimenting with smart contracts.
- Showcase your work in a portfolio to demonstrate your capabilities for a potential employer.
Engage with the Community
- Join forums, developer meetups, and hackathons to network with others in the field.
- Stay updated on industry trends by following Web3-focused discussions and publications.
Continue Learning
- The Web3 space is constantly evolving, so staying up-to-date with advancements is crucial.
- Seek out certifications or courses to deepen your expertise and credibility.
Challenges and Future Outlook
While the opportunities in Web3 are immense, they come with challenges. The fast-evolving technology requires developers to continually upskill. Additionally, the regulatory landscape for blockchain and decentralized systems is still developing, which may introduce uncertainties. A Web3 career offers more than just a job—it provides a chance to shape the next wave of technological innovation. As industries embrace decentralization, the demand for Web3 developers will only grow. Whether you’re a seasoned tech professional or someone looking to enter the field, now is the perfect time to explore this exciting career path. By stepping into the world of Web3, you’re not just advancing your skills—you’re becoming part of a movement that’s redefining how we connect, transact, and collaborate online. The future of technology is here, and it’s decentralized. Will you be part of it?
By Adedapo Adesanya
HubPharm has emerged as the winner of First City Monument Bank (FCMB)’s HERccelerate Showcase Day held recently at Hub One, FCMB’s Innovation Hub in Yaba, Lagos.
The tech accelerator, powered by FCMB’s SheVentures and Hub One and delivered by 8thGear Hub & Venture Studios, was designed to empower women-led startups in Nigeria with the skills and resources needed to secure funding and scale.
HubPharm was the best out of 10 finalists with Midddleman, a platform simplifying payments for African e-commerce businesses sourcing from China coming second, while Onit, a productivity tool designed for African SMEs, secured third place.
The Showcase Day brought together the finalists selected from over 1,000 applications who pitched their innovative solutions to a panel of judges.
Ms Tope Kareem, the co-founder of the startup explained that HubPharm is a digital platform with a retail pharmacy chain which has delivered over 100,000 medications across 15 cities, ensuring 98 per cent on-time delivery with AI-driven logistics.
We plan to explore more options and ensure Nigerians, both at home and abroad, know the importance of prioritizing their health. This funding will enable us to keep growing and making an impact,” she noted.
Speaking on the HERccelerate initiative, Mrs Nnenna Jacob-Ogogo, Group Head of SheVentures, described it as “a testament to what we can achieve when we invest in women. While this is the first pilot of its kind, it is clear that women in tech have the talent, resilience, and vision to drive innovation.”
She also highlighted SheVentures’ broader impact, noting that over the past five years, they have “scaled businesses through four key pillars: access to finance, knowledge, markets, and networks. Our Zero Interest Loan program has provided over N800 million in funding to women entrepreneurs so far, an unprecedented achievement in the industry.”
The top 10 finalists will get free access to Hub One’s coworking space for a year, valued at over N5 million and will also be supported to scale their businesses.
FCMB’s HERccelerate programme is setting a new standard for supporting women in tech, with plans to accelerate over 200 startups in the next five years. By fostering innovation and inclusion, FCMB is shaping a brighter future for women entrepreneurs in Nigeria.
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