106 Views

3 Lucrative Industries in Nigeria for Tech Startups to Step Into

With a population of 170 million, mobile penetration of 75% percent and IT contribution of 10% to the GDP, Nigeria is fast becoming Africa’s go to economy for new tech startups to step into. A lot of opportunities can be found in every sector, but there are several industries where tech startups can really thrive nowadays.

Oil dependency and the need to boost the economy

Nigeria has predominately been an economy that depended on its significant oil reserves to earn revenue. However, the tumbling global oil prices, over recent years, have been encroaching on Nigerian revenues.

In an effort to move away from oil dependency and revamp its economy, the Nigerian government has been taking steps, small as they may be so far but steps nonetheless, to an economy that’s driven by innovation and technology.

The Emerging Nigerian Tech Startup Ecosystem

With a population of nearly 170 million people, mobile penetration of approximately 75% translating into 130 million mobile connections – Nigeria is well on its way to marking itself as a hotspot for tech startups. It is the largest mobile market in Africa and the 24th biggest economy in the world.

A 2013 report by McKinsey consultancy showed that of the almost $500bn Nigerian economy, only 1.5% of it took place online. This shows the immense untapped potential for tech startups.

Although, the country is still facing countless challenges in terms of infrastructure, government corruption and security. Nevertheless, the huge success of Konga shows that Nigeria is a lucrative economy for technopreneurs to thrive in, despite those challenges. Konga is Africa’s first hugely successful online retailer, the African answer to the global giant Amazon. It was launched in 2012 and since then it has seen rapid growth and earned international recognition.

Top 3 lucrative industries in Nigeria

With Nigeria still working hard to bridge the gap between technology and the population, there is tremendous untapped potential, in every niche, for tech startups to take advantage of. That being said here are the industries whose problems have yet to be solved efficiently (through technology) and thus, are a perfect market for tech startups to enter:

  1. Finance (E-Payments, Lending etc)

investment

Considering the recent emergence of the startup ecosystem, Nigeria’s financial sector hasn’t been able to provide the answers to many financing challenges at the pace that is necessary to support the economy.

The launch of BVN has played an integral part in encrypting and securing online financial information, opening the gates for startups to innovate and provide financial solutions, securely.

ALSO READ  Zamfara Government Assembles 500 Qur’anic Reciters To Pray For President Muhammadu Buhari, Nigeria

In 2014 alone, Nigerians made N35 million e-payment transactions, but there simply aren’t many efficient, cheap and secure e-payment solutions to meet the rising demands. Paystack realized the opportunity it presented and quickly developed a solution tailored towards Nigerian merchants.

A new tech startup, Aella Credit, has the potential to disrupt the lending monopoly of Nigerian banks. Aella Credit aims to lend Nigerians money instantly, responsibly and without any collateral.

  1. Agriculture

agricultureAs a plan to keep diversifying the Nigerian economy, President Buhari’s administration vowed to promote agriculture in the country. That being said, most of the farmers in Northern Nigeria are small scale growers who cannot implement irrigation methods and depend mainly on rainfall. With the rainfall becoming increasingly irregular due to harsh climate changes, the farmers are facing unpredictable yields which erode their already minor profits.

To tackle this challenge, the government is trying to introduce precision farming. Precision farming is a technology dependent method which relies on GPS, remote sensors, geographic information systems and yield monitors.

These agricultural challenges are a hotbed of opportunities for any startup willing to innovate and provide solutions through technology.

  1. Education

education

Out of all the students who sat for the West African Senior School Certificate Exams (WASSCE), only 44% of them managed to pass with a credit grade or above. Like every other sector in Africa, education needs a lot of improvement, perhaps the most – considering the fact that education is the backbone of every developed country.

The high percentage of failure does not mean that Nigeria’s or Africa’s students are not intelligent; it shows the lack of learning avenues, where the students can prepare for their exams.

In that vein, startups like Pass.ng and PrepClass have become successful because they recognized the shortage of high quality learning and tutoring opportunities for students. But neither are full tech solutions. Virtual classrooms complete with online assignments and tests have the potential to be even more successful than home tutors and online tests.

Any startup willing to take up the virtual learning mantle is sure to find huge success in Nigeria.

Nigeria, a country full of possibilities

Nigeria has many challenges, but for today’s successful and savvy technopreneur that just means endless possibilities. That being said, the biggest opportunities for Nigerian tech startups lie in finance, agriculture and education. Any startup willing to solve the sectors problems through technology can find the required support and boost from the many venture capitalists, angel investors and startup accelerator programs cropping up in Nigeria.

source: Notey

Get the best viral stories straight into your inbox!

Don't worry, we don't spam

Leave a Comment

Your email address will not be published.

Latest Posts

President Buhari Congratulates Obasanjo For Bagging PhD
Politics
35 views
Politics
35 views

President Buhari Congratulates Obasanjo For Bagging PhD

MT - January 21, 2018

President Muhammadu Buhari has congratulated former President Chief Olusegun Obasanjo for bagging a doctorate degree at the National Open University(NOUN).Buhari, who was the visitor at 7th Convocation…

Why My Daughter Donated Money To Kemi Olunloyo’s Medical Fund – Comedian, Seyi Law  
Entertainment
39 views
Entertainment
39 views

Why My Daughter Donated Money To Kemi Olunloyo’s Medical Fund – Comedian, Seyi Law  

MT - January 21, 2018

Comedian Law and his daughter, Tiwa Comtroversial journalist and daughter of former Oyo state governor, Kemi Olunloyo, was released from the Port Harcourt Maximum Prison, few days…

How I Fainted After Being Robbed By Okada Man In Lagos; Lady Narrates. [Photos]
Shocking
126 views
Shocking
126 views

How I Fainted After Being Robbed By Okada Man In Lagos; Lady Narrates. [Photos]

MT - January 20, 2018

A lady identified as Amarachi Azubuike, has recounted her horrific ordeal at the hands of a motorcyclist a.k.a Okada man who robbed her and threatened to rape…

Singer Simi Plays Chief Bridesmaid Role As Her Mum Remarries
Entertainment
122 views
Entertainment
122 views

Singer Simi Plays Chief Bridesmaid Role As Her Mum Remarries

MT - January 20, 2018

Early this year, there was a viral report that Ms. Jedidiah Ogunleye 'Love don't care' crooner,  Simi's mum will be getting married this January. Ms. Jedidiah Ogunleye and her…

Davido Buys iPhone For Friends To Celebrate The Release Of Umarudeen Kayode
Entertainment
118 views
Entertainment
118 views

Davido Buys iPhone For Friends To Celebrate The Release Of Umarudeen Kayode

MT - January 20, 2018

Dmw Boss Davido puts smile on alot of his crew member and friends Face by even going far to get them an iphone X just to celebrate…

Anti-open Grazing: Why APC Governors Are Begging Ortom To Reverse The Law
Politics
140 views
Politics
140 views

Anti-open Grazing: Why APC Governors Are Begging Ortom To Reverse The Law

MT - January 20, 2018

Governor Samuel Ortom of Benue State is under intense pressure to prevail on the state assembly to repeal the antigrazing law, which had become a sore point…

What Could President Buhari Have Told This APC Chieftain That Got Him This Way? (Photo)
Politics
120 views
Politics
120 views

What Could President Buhari Have Told This APC Chieftain That Got Him This Way? (Photo)

MT - January 20, 2018

President Muhammadu Buhari had this man laughing during the dinner hosted for APC Party Chieftains in State House yesterday.

Photos Of American-Nigerian Rapper, Jidenna Smoking Heavily
Entertainment
96 views
Entertainment
96 views

Photos Of American-Nigerian Rapper, Jidenna Smoking Heavily

MT - January 20, 2018

Caption This Adorable photo of Jidenna smoking Heavily Any caption?

Yewande Adekoya Celebrates Her 35th Birthday With Makeup Photos
Entertainment
86 views
Entertainment
86 views

Yewande Adekoya Celebrates Her 35th Birthday With Makeup Photos

MT - January 20, 2018

Actress Yewande Adekoya Stuns In New Makeup photos As She Celebrates 35yrs birthday Today. Yewande Adekoya (born 20 January 1983), is a Nigerian actress, filmmaker, director and…

Why Your Smartphone Can Make Emergency Calls Without A SIM Card
Technology
84 views
Technology
84 views

Why Your Smartphone Can Make Emergency Calls Without A SIM Card

MT - January 20, 2018

If you're an active mobile phone user, you will notice that your phone can actually make emergency calls without any SIM. I know you must be wondering…

PHOTOS: Inside Jubilee Syringe Manufacturing Factory In Onna, Akwa Ibom
Best of Nigeria
79 views
Best of Nigeria
79 views

PHOTOS: Inside Jubilee Syringe Manufacturing Factory In Onna, Akwa Ibom

MT - January 20, 2018

Today the Honourable Commissioner for Information and Strategy Mr. Charles Udoh led print, online and broadcast media professionals to see some of the achievements recorded in the…

World: Cristiano Ronaldo’s Girlfriend Enjoys Playtime With The Twins And Newborn Baby
Sports
93 views
Sports
93 views

World: Cristiano Ronaldo’s Girlfriend Enjoys Playtime With The Twins And Newborn Baby

MT - January 20, 2018

Cristiano Ronaldo’s girlfriend Georgina Rodriguez has shared a sweet snap of herself with twins Maria and Mateo and newborn daughter Alana Martina. Despite having her hands full…

I Spoke To Arsene Wenger About Iwobi’s Punishment After Misconduct- Super Eagles Coach
Sports
80 views
Sports
80 views

I Spoke To Arsene Wenger About Iwobi’s Punishment After Misconduct- Super Eagles Coach

MT - January 20, 2018

Super Eagles coach, Gernot Rohr, has revealed that he reached out to Arsenal boss Arsene Wenger over Alex Iwobi’s disciplinary issues earlier this month. Iwobi attended a…

My Experience At Port Harcourt Maximum Prison – Kemi Olunloyo
Entertainment
103 views
Entertainment
103 views

My Experience At Port Harcourt Maximum Prison – Kemi Olunloyo

MT - January 20, 2018

No one ever prays to go to prison; however, for the popular blogger, Kemi Olunloyo, 2017 is a year that she would likely not forget in a…

13 Steps To Help You Bounce Back From Betrayal
How Tos
68 views
How Tos
68 views

13 Steps To Help You Bounce Back From Betrayal

PH - January 20, 2018

  We suffer quietly through disloyalty from a partner, friend, or family member, but this embeds harmful emotions deeply into our being. Our trust in others erodes…

Residents of Ipoyewa community Laments 15yrs Blackout
General
57 views
General
57 views

Residents of Ipoyewa community Laments 15yrs Blackout

PH - January 20, 2018

Residents of Ipoyewa Phase 3, Adamo, Ikorodu area  of Lagos State have cried out to Governor Akinwunmi Ambode to come and rescue them from total darkness. The…

Friends Of TY Bello’s Throws Her Suprise Brunch To Mark Her 40th Birthday (Video)
Buzz & Trends
72 views
Buzz & Trends
72 views

Friends Of TY Bello’s Throws Her Suprise Brunch To Mark Her 40th Birthday (Video)

PH - January 20, 2018

Nigerian singer, songwriter and photographer, Toyin Sokefun-Bello, better known as TY Bello turned 40 last Sunday, January 14, 2018, and she was surprised by family and friends to…

2yrs After Partial Stroke, Nollywood Actress Iyabo Oko Returns From India
Buzz & Trends
87 views
Buzz & Trends
87 views

2yrs After Partial Stroke, Nollywood Actress Iyabo Oko Returns From India

PH - January 20, 2018

Veteran Yoruba actress, Kudirat Odukanmi Eluyemi otherwise known as Iyabo Oko has finally returned to Nigeria 2 years after she was diagnosed with partial stroke and flown abroad by her eldest son…

Loading...