Professor Olufemi Shuaib, a Lecturer on the University of Lagos, has warned that Nigeria’s rising concentrate on expertise abilities and digital options is reportedly driving expertise and jobs away from the native financial system relatively than creating home worth.
He made the remarks final month at Protea Lodge, Alausa, Ikeja, through the Financial Roundtable Dialogue organized by the Financial Intelligence Division of the Lagos State Ministry of Financial Planning and Price range.
The professional highlighted that whereas younger professionals are gaining private advantages by way of app improvement and digital providers, the nation is shedding financial worth as most options cater to international markets relatively than producing locally-marketed items or industrial expertise.
What they’re saying
In accordance with the professional, many college students with economics backgrounds at the moment are growing purposes for worldwide transactions, relatively than options that construct home worth.
“All this tech, tech, tech, tech we’re selling. We have to have a re-evaluation very properly. If we’re creating individuals who can do content material improvement, digital advertising, and we don’t have something to promote in Nigeria, all we do is that we’re additionally compounding the native downside. As a result of we’re transferring jobs away,” Shuaib stated.
“They develop apps that enable you purchase abroad. They develop apps that enable you switch cash abroad. They’re really personally gaining values, however the financial system is shedding values,” he added.
Name for industrial expertise focus
Shuaib prompt a shift from data expertise towards industrial expertise that produces tangible worth inside Nigeria.
“Can we go from data expertise to industrial expertise? The place folks construct apps that may produce even unusual expertise in order that we now have a worth created in Nigeria that we will market to the world?” he questioned.
He additional emphasised the function of presidency in redirecting public-private partnerships to help engineering expertise able to creating regionally produced expertise.
“The personal sector can not try this as a result of there is no such thing as a huge speedy profit to the personal sector. So, it’s the general public. Can we start to redirect our public-private partnership that identifies some people who find themselves very proficient in engineering and go and help them, I suppose, to have the ability to produce these small, small issues with import abroad and start now to have that worth that we’re creating in Nigeria?”
The professional warned {that a} continued reliance on imported ready-made merchandise leaves Nigeria depending on international markets and susceptible to world disruptions.
He emphasised that constructing native expertise and industrial merchandise would enable the nation to create its personal worth, strengthen financial resilience, and higher stand up to shocks affecting the worldwide financial system
What it’s best to know
Nigeria is finalizing a brand new Nigerian Industrial Coverage to shift the financial system away from import dependence and strengthen native manufacturing. The coverage is aimed toward rising the manufacturing sector’s contribution to GDP and reducing reliance on uncooked materials exports. It targets excessive‑potential areas like textiles, automotive, agro‑processing and prescription drugs to drive job creation and diversify exports
- Knowledge from latest GDP stories present that manufacturing has maintained a comparatively small share of the financial system. The sector accounted for round 8.64% of complete GDP in 2023; it declined to eight.41% in 2024, highlighting its comparatively low share within the financial system.
- Nigeria’s dependence on imported items stays excessive. Imported manufactured items had been valued at N8.47 trillion within the fourth quarter of 2024, whereas complete imports rose to N16.59 trillion. China is the most important supply at N4.61 trillion, adopted by India, Belgium, america, and France.
- In the meantime, Nigerian tech startups have seen important funding exercise in recent times, with the ecosystem attracting main capital and producing excessive‑progress corporations. In 2024, tech startups in Nigeria raised over $400 million, anchored by massive rounds like Moove’s $110 million Collection B and Moniepoint’s $110 million Collection C.
This yr, the funding momentum continued, with Nigerian startups elevating $93.4 million in October alone, a 130.6% enhance from the earlier month.
On the home entrance, BusinessTimes stories that Lagos has emerged because the hub for tech capital, attracting greater than $6 billion between 2019 and 2024, making it dwelling to nearly all of the nation’s unicorns and high-growth startups.
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