There has been a lot of rave and hype lately about the tech industry in Nigeria. So I’ve decided to give my analysis on the industry. I start by talking about the biggest section of the industry in terms of profits, the telecommunications sector. How is the market right now and what are its prospects? I also briefly talk about the tech startups scene, how its shaping up and what lies ahead. Of course the software development field cannot be ignored. What has been going on in the field? and what are its possibilities future? Finally, I answer the impending question of the potential of the tech industry as a whole and the challenges it faces in meeting that potential.

Telecommunications Sector
There was a time when the word I.T was mentioned, it sounded incorrect without putting the “communication” in-between to make it “Information Communication Technology” or ICT. That is because it has been without a doubt, the most profitable sector of the industry for a long time. As far as I can remember the big telecoms companies such as MTN, Globacom and Etisalat have been competing like a pair sharks for the attention and loyalty of the Nigerian people. Recently, smaller companies like Spectranet, Smile and Ntel have come into the scene and have carved out their own market share. Competition has been so fierce that some of them have even started providing unlimited data subscriptions. Something I never thought I would hear again since the time of Nitel and Multilinks. This events cannot be over-emphasized, as it has provided access and more exposure to a wider range of people fueling self-education and efficiency. In my opinion, it’s just the beginning as the telecoms companies will be the backbone of the tech industry in the coming years.

Tech Startups Scene
There are two main sectors right now in the tech start-up scene. Those that rely on technology for their business and those that are fully or almost fully based on technology. For Example, Jumia is the most popular e-commerce company. It’s highly depended on its website but there are other aspects of its business such as logistics and warehousing. Hotels.ng, the hotel booking agency is an example of a start-up that’s fully based on technology. Both sides of the tech scene are thriving, gaining user traction, recognition and some even getting local and foreign investments. As there is more need for improved efficiency across other industries, there will be a lot more growth in the tech start-up scene.

Software Development Sector
In the area of software development there is a lot to look forward to. Due to ease of entry into the market there has been an influx of individuals to establish a stack in the sector. With the advent of technologies like WordPress, freelancers and entrepreneurs have been able to start businesses very quickly and establish themselves. However, in terms of the industry standard, there are fewer people that can create large scale or more specialized software application, especially since the software development field is a very complex one. I believe in the coming years, the software space will be a dominant part of the tech industry as Nigeria is undoubtedly filled with talented professionals and entrepreneurs well suited for that area.

Potential and Challenges
In summary, there is great potential in the technology industry particularly since the country is witnessing an influx of foreign grown talent that have brushed shoulders with the top professionals around the world. There are also interests from foreign investors who see the country as a prime destination for investment in the coming years. Despite the positives, there are still some challenges that need to be overcome before these potentials can be realized. First, there has to be improved security, although the security has improved quite significantly from the previous years, there is need for further improvements in terms of crime control such that investors feel they can invest for long period of years without apprehension and fear. Another glaring challenge is the economy. There is an economic recession that needs to be addressed. No industry can fulfil its potential in a bad economy. Furthermore, the ease of doing business needs to be improved to nurture the growth of the industry. In conclusion the biggest concern which hasn’t received much attention is the time it might take for investors to get their return on the investment (ROI). Due to the relatively unstable environment, investors especially the foreign ones might decide to take their investment to other places where they feel they can get a return on their investment within a shorter period of time. For Nigeria’s tech industry and its economy at large to achieve its true potential, we have to be able to move at the pace that the rest of the world is moving at.

In my view, that will be the biggest challenge of all.

SOURCE - www.lifeofanaijageek.com