Are Tech Startups a Solution to Nigeria’s Unemployment Crisis?

Over the last couple of decades, technology has become one of the world’s major drivers of job creation. Tech companies have taken the world by storm and revolutionised the world of business.

More so, there are thousands of new business opportunities waiting to be explored particularly for a country like Nigeria, given its unemployment crisis.

Although technology-based businesses are on the rise and creating employment opportunities in Nigeria, there is still more that needs to be done in the sector to impact the job market remarkably.

The Nigerian unemployment crisis is such a big issue that every year, the number of graduates are usually more than job openings and to ease this continuous issue, the government have, over time, focused on vocational education and financial provisions, but these measures have hardly made significant changes.

However, tech startups can provide an opportunity to increase and track the employability of young people.

How do tech startups come in?

It is undeniable that the tech industry has become a driver of job creation in a country like Nigeria. Whether employing individuals to build high-growth companies or empowering individuals with digital skills that in turn enables them to earn an income from local and international companies, the industry is contributing significantly to alleviating unemployment in the country.

However, there is still a long way to go; some of these companies are experiencing constraints from stifling government policies, unfavourable entrepreneurial environments and limited capital. These factors have stalled the ability of some of these tech companies to scale to the extent of global tech companies that employ individuals in hundreds of thousands.

Nonetheless, with the companies’ potentials, government collaboration and conducive business environment, these companies can expand, allow for new ones and create more job opportunities for Nigeria’s teeming unemployed.

More so, these tech startups can help bring the right skills to youths, expand networks virtually and create new career models. It will also encourage young people to pursue digital entrepreneurship and avail the government the opportunity to invest in digital infrastructure and develop new, responsive regulatory frameworks.