Are you new to running a technology startup in Nigeria, we have put together a list of some of the realities surrounding the survival of any business entity in this part of the world especially for your niche.
A ‘startup’ according to Dave McClure is “a company that is confused about three things: What its product is, who its customers are and how to make money”.
Though, these three things seem basic, any startup company that doesn’t understand them properly with them will automatically be racing towards the exit of whatever industry such company finds itself. Oh! I forgot to add that in a country as complicated as Nigeria, it is expedient you note that there are some realities a startup company should also bear in mind. Though, majority of them are somewhat discouraging, any startup founder that can effectively deal with them will stand the test of time.

Below are the 7 things that are real if you run a technology startup in Nigeria.

Many Nigerians Lack Trust For Homemade Products
You read it right. It’s sad though, but that’s the truth. Present to an average Nigerian a product made in any other country aside Nigeria and watch how he/she will jump at it minding neither the quality nor effectiveness of such product. In Nigeria, your status in the society is sometimes tied to how many foreign properties and/items you own!
The narrative however seems to be changing these days as more high quality home grown solutions are emerging. There has also been a quickly growing #MadeInNigeria campaign.

Government Policies Can Stifle Tech Startups
To start with, read this article about how the Nigerian government might kill innovation. I’m sure you must have stumbled upon different newspaper headlines applauding Nigerians, young and old over either inventing a new technology or improving drastically upon the existing ones. But how many of these people, if I may ask, get the required support from the government? The bottom line is that, the government of Nigeria does little or not enough in terms of incentives (such as scholarships, grants, loans etc) to encourage tech startups in the country.
Again, things seem to be gradually changing with the Nigerian government gradually paying attention to the tech ecosystem. Aso Villa Demo Day that has been highly applauded despite its flaws is also a great step the government has taken to support those running a technology startup in Nigeria.



Unsure protection from foreign competitors
One of the most potent ways known to protect domestic businesses is shielding them from foreign competitors, since it is evident that the cost of production in this part of the world is on the high side. But hey, you have to wake up to the reality that the Nigerian government (though it has tried its best) in the past few years has not done enough in the regard of protectionism.
This is however not to make a case for stopping foreign investors from setting shop here in Nigeria. There has to however be a balance that ensures that local entrepreneurs can benefit. A good example is the local content policy in the Oil & Gas industry.

Imitators Abound. Be Different!
I don’t think much explanation is needed here. Some “entrepreneurs” just copy the ideas, inventions and/or innovations of others, improve upon them, and then try to make it better than that of the original owner. Sometimes they succeed rendering the original idea(s) useless. Therefore, think about patenting your idea. Otherwise, just ensure you are different.
This reality is not unique to Nigeria, however, given the weakness of our IP protection regulatory framework it is usually easier to perpetrate the act of imitating people’s ideas.

There Is An Infrastructural Deficit
Aside places like Lagos, Port-Harcourt, Abuja etc., many parts of Nigeria have overtime been plagued with the problems of not only inadequate but also dilapidated infrastructural facilities. There is also the unhealthy maintenance culture embedded in the bloodstream of some Nigerians, thereby, posing a threat to the survival of companies (especially startups) who need these infrastructure working.
One can only hope that current government makes good on its commitment to invest heavily in infrastructural development. This will go a long way in providing an enabling environment for those managing a technology startup in Nigeria.


Nigeria Has The Market
With over 170 million citizens and still counting, it is evident that there is a ready market for a large number of consumer goods and services (including tech) here. There is even a saying that whatever is being produced at all definitely has a market in Nigeria. A living proof to this is that Nigeria presently houses the largest technology market (computer village Ikeja) in West Africa. This is a positive reality for those running a technology startup in Nigeria.

Finance
Lastly, getting funds for startups is not easy here due to the bureaucratic nature of obtaining loans in the financial institutions here in Nigeria, especially in this country’s present situation. There are however a good number of funds from Venture Capitalists and Government funded agencies that a technology startup in Nigeria can get access to.
Though the aforementioned are the realities of a tech startup, don’t be intimidated by any of these realities. Instead keep them at the back of your mind as you work to build your startup. You can overcome some of the inhibiting realities by using the suggestions we have provided. Whatever might be the case, as a technology startup in Nigeria, stay self-funded as long as possible, be patient, and never ever get discouraged.

You can check here for 7 things every startup needs to know before pitching

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