Why Nigeria's Tech Ecosystem Is Ready for Its 'Zero to One' Moment

Every major tech ecosystem has a defining decade—a period when converging factors create explosive growth and establish lasting infrastructure. Silicon Valley had the 1990s. China had the 2010s.

Nigeria is entering that window now.

The Convergence

Five factors are aligning to create unprecedented opportunity:

1. Talent at Scale

Nigeria produces over 100,000 STEM graduates annually. More importantly, the quality has risen dramatically. Nigerian engineers now compete for positions at top global companies—and many are choosing to stay and build locally.

The diaspora is returning. We're seeing senior engineers and executives from Google, Meta, Stripe, and other tech giants come back to build. They bring expertise, networks, and ambition.

2. Capital Is Flowing

African startups raised over $5 billion in 2025, with Nigeria capturing roughly 40% of that capital. More importantly:

• Local VCs are emerging with significant dry powder
• International investors are increasingly comfortable with Nigerian dealflow
• Alternative funding mechanisms (debt, revenue-based financing) are maturing

Money is no longer the primary constraint it was five years ago.

3. Infrastructure Is Improving

This is often overlooked but crucial:

• Internet penetration has reached 55% and continues climbing
• Smartphone adoption is accelerating as device costs fall
• Payment infrastructure has improved dramatically post-2020
• Cloud computing costs have dropped, enabling new technical architectures

The fundamental infrastructure needed to build and deliver digital products is now in place.

4. Market Size + Growth

Nigeria's population will exceed 400 million by 2050. More importantly:

• The middle class is expanding
• Digital adoption is accelerating across demographics
• Previously informal markets are digitizing rapidly

The addressable market for technology solutions is massive and growing.

5. Regulatory Evolution

While challenges remain, regulators are increasingly sophisticated about technology. We're seeing:

• Clearer frameworks for fintech and digital banking
• Growing understanding of startup economics
• More dialogue between founders and policymakers

The regulatory environment, while imperfect, is improving.

What This Means for Founders

This convergence creates specific opportunities:

Build Infrastructure

The ecosystem needs picks-and-shovels companies—payment rails, cloud services, developer tools, logistics infrastructure. These aren't sexy but are essential and defensible.

Think Regional from Day One

Nigeria can be your beachhead, but the real opportunity is Pan-African. Build with that scale in mind from the beginning.

Don't Copy Silicon Valley

What works in the US often doesn't work here. The winning companies will be those that deeply understand local context and build accordingly.

Focus on Unit Economics

The easy money era is over globally. Investors are demanding sustainable business models. Build companies that can survive without constant funding.

The Ikenga Thesis

At Ikenga Foundry, we believe Nigeria will produce multiple billion-dollar companies over the next decade. Not through copying foreign models, but through uniquely African innovation.

Our job is to provide the infrastructure—the forge—where that innovation happens. We're investing in:

1. Founders who understand both local context and global standards
2. Companies building essential infrastructure
3. Products that can scale across Africa and beyond

What We're Watching

Sectors we're particularly excited about:

• Enterprise Software: The digitization of Nigerian businesses is just beginning
• Climate Tech: Africa's climate challenges require African solutions
• Health Tech: 200+ million people underserved by traditional healthcare
• Agri-Fintech: Agriculture meets financial services at scale

The Time Is Now

Every decade, a new geography emerges as a technology hub. The 2020s belong to Africa, and Nigeria is positioned to lead.

The question isn't whether this will happen—it's who will build the defining companies. The forge is ready. The opportunity is here.

Olumide Balogun is Chief Investment Officer at Ikenga Foundry. Previously, he was a partner at a leading African VC firm where he deployed $50M+ into early-stage startups.