Feature/OPED
Africa: Why Startups and Private Universities Failed on Development
By Nneka Okumazie
How many startups in Africa can say that their existence is the reason a major problem was solved in Africa, for the majority of Africans?
Some may easily dismiss this as not being a part of their mandate, but maybe looking at what they do through that lens could make their services more useful to their people.
The startup scene in Africa is full of activities, but there is no evidence that those activities are connected to solving major problems on the continent, as most of the problems that Africa faces are still there, or worse, with little end in sight.
Africans are not solving the problems of Africa. Whenever Africa makes progress, it is often due to external involvement, sometimes with little to nothing for Africans to contribute.
The situation that Africans cannot solve their own problems could mean that the problems are really complex, or Africans are not competent enough to solve their own problems, or both. There are counterarguments that some can make, but the evidence before everyone is that Africa is not developed, so something is not right about what most of these people claim they are doing.
There were people who had thought that education was the problem in Africa, hence the proliferation of private universities, but no private university in Africa has solved any problem in Africa, making their existence questionable.
In some countries with strikes in state schools, student gangs, sexual harassment and poor facilities, private universities may have been seen as better by some parents, but avoiding some of those things does not make them universities.
Providing or getting a meaningful education is one of the things that cannot be easily copied. A student may buy a new pencil, bag or shoe, but if the student is hollow, the availability of those things does not count, even if they may show to outsiders that notice that the student seems equipped.
Most private universities in Africa have a new pencil problem. Copying buildings does not make a place a university, it is just real estate, giving dress codes does not make a university, just a fashion ground, even having discipline does not make the place better than a military camp.
The private universities in Africa appear not to have what it takes to be transformative destinations for high-quality education or serious projects that can develop Africa.
The terrible trend with private university graduates of recent years in Africa is that they are also leaving the continent, travelling for different reasons. Africans without education are travelling desperately. Those who went to state schools are travelling desperately. Those who went to private schools are also travelling desperately. So, what is the point of a private university, if their selling point for quality education produces graduates who become herds, with nothing substantial to offer than to do as others and race out?
Like shiny private universities and startups, many places in Africa may look new and modernized, but it appears that the dominant operational strategy for things in Africa is primitiveness. The same crude way that people do things in rural settings is the same way that others across Africa do things, even if they are better furnished.
The people that Africa copied startups from are not doing their mainstream startups like what Africa has made it. Success for startups often makes them evolve in more directions, with new paths and things, working their way to societal indispensability. This is not the case in Africa.
It must be familiar to be viable. And what is familiar must come from others. There is no originality, even of risks that would not cost much if it does not work. They are often on guard about insignificant products. They often make things that should make sense meaningless. They use hate and envy whereas they should use aptitude. They make choices based on what is easy not what is possible. Their character is weak, unable to bear the weight of the progress Africa needs. They often act like they are not in Africa, or what is evident is not their concern. Their persistence is often for show and pleasure.
African startups came to embody the same mistakes as universities, where the lecturers are motivated or happy by the availability of grants or funding, rather than by the need to solve pressing problems. There is hardly anyone in areas without money. The flock is where the funding is, or the purpose simply is money.
Just like African education is static, has not changed and solves nothing, showing that the lecturers are incompetent to even do anything in their own space, so are startups in Africa for whom it can be argued are lacking precise talents, even if there is the abundance of people doing things.
The startup scene instead has vultures, those with feet everywhere for whatever benefits they can amass. There are some of their apparently smart people who keep advising everywhere in public. Those people have nothing original. They know not more than they have read or seen. Anyone would know what they know given the same materials.
There were many on high horses for many years due to technical skills, but now that robots can code, it shows how light they have always been, having nothing beyond what anyone could learn.
African startups and private universities seem to turn away from obvious problems, for whatever reasons, maybe due to a lack of talent or what may bring funding.
There are young people who work on commercial buses in Africa, who scream intensely to get people to come in. There are people who carry things on their heads, walking miles to sell, come rain or shine. None of the private universities or startups seems to care or see these as problems to solve, though they find giving them loans or saving their money as something to solve, not their explosive misery.
Some startup people and university lecturers would wear African clothes or put all kinds of punctuation over their names, like what it means to love Africa or care what they wear or how their names appear when there are so many obvious problems, and what they offer is nothing.
Africa is in a bad place. There are many places in Africa where extreme poverty is the beginning of hope. There are too many common levels below extreme poverty, for many of the population, with most conditions external to human dignity.
The problems of Africa seem to be talking points for many, going to school elsewhere or doing some startups, only as means be far away from it, themselves.
Any university lecturer or startup person who says that government is bad or is the problem is absolutely clueless and has nothing to offer.
Government is an obvious problem in Africa from the observation of people who always externalize their problems. The university that cannot solve hawking, or transform parts of education services under their own power, would say the government is bad. A startup that has a useless but well-built product would say the government is bad.
African governments are just another department of the crudeness of Africans. Rather than the governments as a problem, they are opportunities.
All African governments (and law enforcement) are cheap, crude and confused. There is no way to want anything from them and not get it. Their power structure is only money and force, when power in the world has diversified with advances, they are stuck with the stale since their people too can’t seem to do anything new.
How does Africa make progress? There are many Africans who see nothing good in Africa and nothing would change that for them. Two sources, private universities and startups that should hold promise for Africa’s development have failed.
Feature/OPED
What Does Nigeria’s $51bn Reserves Milestone Mean if Most New Foreign Money Can Leave Quickly?
Nigeria’s foreign reserves have climbed to about $51 billion, a decade-plus high, according to the Central Bank of Nigeria (CBN). EBC Financial Group (EBC) notes that this reflects stronger investor confidence, but the second half may show whether it holds, as the build rests on three cyclical drivers: oil earnings, short-term foreign money and a narrowing official-to-street naira gap.
Reserves rose from about $32 billion in April 2024, during a dollar shortage, to about $51 billion now, near the CBN’s target. Much came from two cyclical sources, strong oil earnings and money chasing high-yielding naira assets, so EBC expects the pace to slow or reverse. Fitch Ratings, a major international credit rating agency, expects a marginal decline to about $47 billion by the end of 2026, citing higher spending and external pressures.
David Precious, Senior Market Analyst at EBC Financial Group, said, “Nigeria’s reserve build is real but may not be durable yet, because nearly all of the new money is the kind that can leave quickly. Of the $10.37 billion that came in over the first quarter, the overwhelming majority was short-term portfolio funds rather than long-term investment, so a shift in oil prices, global interest rates or confidence in the naira might pull a large part of it straight back out.”
Most New Money Can Still Leave Quickly
The composition of the foreign inflows explains the caution over how long the build can last. The country attracted $10.37 billion in foreign investment in the first quarter of 2026, up 83.83 per cent year-on-year, according to the National Bureau of Statistics (NBS). Of that, $9.86 billion or 95.09 per cent, was portfolio money, largely short-term naira debt such as Treasury bills that investors can sell at the next auction, while foreign direct investment, the long-term kind that builds factories and jobs, was $135.08 million, or 1.30 per cent. Put simply, of each dollar coming in, about 95 cents can leave quickly, and barely one cent stays.
That money supports reserves while it stays. Dollars brought in to buy naira assets add to market supply, letting the CBN hold more reserves and steady the naira. It leaves when conditions change. Nigeria earns most of its export dollars from oil and gas, so lower oil prices mean fewer dollars, and as a member of the Organisation of the Petroleum Exporting Countries (OPEC), it cannot simply produce more, output capped by quota and reduced by theft and ageing fields. Higher global interest rates draw money toward safer returns abroad, and a weakening naira prompts investors to sell early. When oil fell in 2016 and 2020, foreign investors withdrew and could not convert naira to dollars as supply dried up, leaving the CBN to clear more than $7 billion in trapped obligations into 2024.
The Oil Boost is No Longer Certain
Oil looked like a dependable source of the dollars behind the reserves only months ago. Earlier in 2026, concern over disruption around the Strait of Hormuz lifted crude prices, and stronger receipts flowed in, with crude oil export earnings of $8.11 billion in the first quarter in the CBN’s balance-of-payments data. That support is now easing. The tension has subsided, and Brent traded near $72 on June 29, down about 24 per cent over the month, back to pre-conflict levels. With the price boost gone and output constrained, reserves are more exposed, leaning on non-oil earnings and investor patience rather than oil.
The Naira Still Trades at Two Prices
The naira has traded at two prices, an official rate and a higher parallel-market rate, and closing that gap into one trusted price is what many investors might watch most. Before committing funds, they may want assurance they can convert naira to dollars at a fair rate when they exit, and a wide gap revives the fear of being trapped that lingers from earlier shortages. The gap has narrowed to roughly N20 to N30, with the CBN’s official rate near N1,380 per dollar on June 26 against parallel-market quotes around N1,400. The International Monetary Fund (IMF) 2026 Article IV review urged Nigeria to depend less on this fast-moving portfolio money and to keep phasing out its multiple exchange-rate practices. The CBN’s Foreign Exchange Manual, in force from 1 June, is intended to make the market clearer, though such rules build confidence only once investors can freely trade dollars at the posted rate.
What could Make the Build Durable
A few signs that may show the build turning durable include a smaller gap between the official and street naira rates, more long-term foreign investment, and steadier oil earnings. A gap that stays small, now roughly N20 to N30, may mean investors trust the official rate and no longer need the street market. A clear rise in foreign direct investment, only $135 million last quarter against $9.86 billion of short-term money, might mean lasting capital is replacing funds that can leave at the next auction. Oil earnings that hold up, rather than sliding from the low $70s, should help keep reserves steady, since oil and gas bring in most of Nigeria’s export dollars.
“Reserves built on money chasing high yields can fall as fast as they rose, as they did after the last two oil shocks, when investors left, and the CBN spent years clearing a foreign-exchange backlog,” Precious added. “What holds through a downturn is slower money, direct investment, steady oil and non-oil export earnings and one credible naira rate, and that is the shift Nigeria has yet to make.”
By Olajumoke Bello
Across Nigeria, small and medium enterprises remain the backbone of economic activity. They drive trade, create jobs, and sustain millions of livelihoods. Yet, despite their importance, many SMEs continue to operate below their full potential due to persistent structural challenges.
Access to finance remains one of the most cited constraints. However, the issue today goes beyond the availability of capital. Many businesses struggle with financial readiness, weak documentation, and limited understanding of what lenders require. This often leads to missed opportunities, even when funding options exist.
At the same time, SMEs face gaps in market access and visibility. Business owners operate in highly localised environments, with limited exposure to broader networks that can unlock partnerships, new markets, and growth opportunities. This isolation can constrain scalability and reduce long-term competitiveness.
Equally important is the capability gap. Many entrepreneurs grow through resilience and experience but lack structured knowledge on critical areas such as financial management, export readiness, and digital adoption. Without this, even well-capitalised businesses can struggle to sustain growth.
These challenges point to a clear need for a more practical and integrated approach to SME support. It is no longer sufficient to offer standalone solutions. SMEs require ecosystems that combine knowledge, access, and direct engagement in ways that reflect how they actually operate.
A key shift is the move from centralised interventions to localised engagement. SMEs are deeply influenced by their immediate environments, whether markets, industrial clusters, or trade corridors. Solutions must therefore be brought closer to where these businesses function, allowing for more relevant support and stronger relationships.
Another important shift is from awareness to action. Business owners do not only need information; they need insights that they can apply immediately. This includes understanding how to structure their finances, how to access trade opportunities, and how to connect with the right partners to scale their operations.
There is also a growing need for continuity. Many SME-focused initiatives deliver strong initial impact but lack follow-through. For support to be effective, it must extend beyond one-off engagements into sustained relationships, with clear pathways for onboarding, advisory, and growth.
For financial institutions, this presents both responsibility and an opportunity. Supporting SMEs now requires moving beyond transactional banking to deeper partnership models. It requires understanding businesses at a granular level and co-creating solutions that evolve with their needs.
At Stanbic IBTC, this perspective continues to shape our approach to SME development. Our focus is on delivering practical support that translates into real business outcomes, helping enterprises grow, compete, and contribute more meaningfully to the economy.
As part of this commitment, we are extending our SME engagement to the regions through the Nigeria Business Summit Regional Tour. The tour will take structured, on-ground activations into key commercial hubs, where SMEs can access funding guidance, trade insights, advisory support, and direct engagement with financial experts.
The regional tour will take place across five strategic locations, bringing these solutions closer to business owners in Aba, Onitsha, Ibadan and Kano.
This approach reflects an important principle. When support moves closer to businesses and when solutions are delivered in ways that are practical and continuous, SMEs are better positioned to grow sustainably. In turn, this strengthens not only individual enterprises but the broader economy.
Olajumoke Bello is the Head of Enterprise Banking at Stanbic IBTC Bank
By Winston Osuchukwu
The average Nigerian borrower is widely considered high-risk – a claim repeated in credit committees, priced into retail loans, and largely treated as settled fact. Every credit market accepts that an individual loan may not be repaid; this is ordinary, priced risk. The high-risk claim, however, is applied to whole segments – the informal trader, the gig economy earner whose income is steady but split across several accounts, the remote worker paid by an overseas client into a fintech FX wallet. What the assessment establishes is not whether they are likely to repay, but how they fit into an arbitrary segment. Having spent years building decisioning systems for this market, my thesis is a specific one: “high-risk” does not mean “no credit” – it simply requires that the lender embrace alternative datasets to price the risk appropriately.
This is not a criticism of the institutions that built their frameworks around collateral and documentation; those were rational responses to the tools available at the time. When data is scarce, prudence means defaulting to the status quo. The limitation is not that this approach is wrong, but that it leaves a blind spot – excluding fundamentally sound borrowers whose economic lives simply are not captured on the bank’s ledger. A market trader who has moved consistent, growing volumes of cash through mobile money for three years is not, in any meaningful sense, unknowable. Their financial behaviour is observable and patterned; it simply occurs outside the traditional banking system, rendering it invisible to conventional underwriting.
This is the gap technology is now positioned to close – not by replacing institutional judgment, but by augmenting it. When AI-driven analysis is applied rigorously to the financial behaviour these borrowers generate, a far more complete picture of their repayment ability emerges – and a meaningful share presents a risk profile that compares favourably with segments the traditional system has long considered safe. The “high-risk” label, applied broadly to an entire category of borrower, was never a risk pricing tool so much as the limit of what the available tools could see.
For banks, this is the opportunity to extend capital with confidence beyond the borrowers who fit their stringent criteria. Nigerian banks are highly liquid; the constraint on credit growth has rarely been capital, but the ability to assess and price the borrowers who sit outside the traditional file. Close that gap, and the whole ecosystem strengthens: banks grow their loan books into segments they have long wanted to serve, and the real economy gets the capital it needs to expand.
This is precisely what we focus on at Mathesis Analytics: building AI-powered credit decisioning that gives lenders a fuller, more defensible picture of the individuals long excluded as high-risk when they were simply misjudged. The Nigerian credit gap has never been a non-lendable population problem, but one of incomplete visibility. By unifying varied data sources and partnering with the institutions that hold the capital and scale to move the market, we translate out-of-ecosystem behaviour into reliable, bank-grade risk scores. Closing this gap is one of the clearest, highest-leverage opportunities in Nigerian financial services today.
Winston Osuchukwu is the founder & CEO of Mathesis Analytics
