Nigerian Tech Hub Comparison: Lagos vs Akure

Nigerian Tech Hub Comparison: Lagos vs Akure 

Nigeria, the continent's largest economy, has a diverse and rapidly growing industrial sector. This growth is driven by major industrial hubs across the country, each with its strengths and areas of focus. For suppliers and manufacturers looking to tap into Nigeria’s large market, knowing these key hubs is crucial. 

Akure and Lagos are rapidly emerging as key centers for technology and innovation. While Lagos is widely recognized as Nigeria’s commercial and tech capital, Akure is steadily gaining recognition for its growing and dynamic tech ecosystem. In this article, we’ll examine the tech landscapes of both cities and compare their strengths and challenges.

Akure: Nigeria’s Quietly Rising Tech Hub

Akure, in southwestern Nigeria, is often missed as a tech hub. However, the city is quickly gaining recognition for its vibrant tech community. Akure’s tech growth comes from several important factors, such as:

Infrastructure

Akure, the capital of Ondo State, is rapidly gaining recognition as a hub for tech startups and established enterprises. Centers like The HiveHub offer workspaces and mentorship to support startups' growth. The HiveHub has consistently worked to bring technology closer to the grassroots, making innovation more accessible to local communities.

Funding Opportunities

The Hive Incubator has consistently sought to provide funding and opportunities to startups and entrepreneurs through its Hive Incubator program. In Akure, tech entrepreneurs are forming a growing community that has the potential to evolve into a thriving and sustainable ecosystem in the near future.

Talent Pool

Akure is home to many young people with tech skills, especially fresh graduates and early-career professionals. A large number of them come from the Federal University of Technology, Akure (FUTA), which is known as one of Nigeria’s top technology universities. The university plays an essential role in producing tech talent and preparing them for the job market.

Government

The Ondo State government is committed to supporting Information and Communication Technology (ICT) and has initiated several programs to help achieve this goal. They also plan to remove state taxes for early-stage startups to encourage their growth. The E-village, also known as Africa’s Silicon Valley, is a community-focused project based in Akure.

Success Stories

The Ondo State government is working diligently to support ICT and has initiated several programs to achieve this goal. It also plans to exempt new startups from state taxes to help them grow. The E-Village, often referred to as Africa’s Silicon Valley, is a community-based project situated in Akure.

Lagos: The Beating Heart of Nigeria’s Tech Industry

With its large population and strong economy, Lagos has naturally become Nigeria’s central hub for tech companies. The city is home to numerous startups, innovation centers, and tech incubators. Lagos-based companies such as Interswitch, Paystack, and Andela have gained international recognition and attracted substantial investments.

The city’s tech ecosystem is supported by several key factors, including:

Infrastructure

Lagos is Nigeria’s financial hub, where numerous investors and venture capital firms are based. The city has an intense funding scene that attracts money from both local and international investors. Its good infrastructure helps create a friendly environment for these investments.

Funding Opportunities

Lagos is Nigeria’s primary financial hub and home to numerous venture capital firms and investors. The city is renowned for its vibrant funding scene, attracting substantial investments from both local and international backers. Its strong infrastructure helps create a welcoming environment for these investments.

Talent Pool

Lagos has the largest concentration of tech professionals in Africa, renowned for their exceptional skills and entrepreneurial drive. With more than 2,000 startups and a total ecosystem worth $9 billion, the city is a vibrant hub for innovation. Lagos attracts top talent from all over Nigeria, supported by numerous universities and institutions that provide a steady stream of skilled graduates.

Government

The Lagos State Government has introduced several programs to support the growth of the tech industry. These include LASRIC (Lagos State Research and Innovation Council), which focuses on research and innovation, business-friendly regulatory changes to encourage startup activities, and tax incentives provided through the Nigeria Startup Act 2022.

Success Stories

Lagos is home to several well-known tech companies that have gained international attention. Paystack, which was bought by Stripe in 2020, helped put Lagos on the global fintech stage. Flutterwave is another major fintech company driving growth, while OPay is a strong player in the digital payments sector. These successes have encouraged more investors and entrepreneurs to come to the city. While Lagos leads in fintech and funding, Nairobi focuses more on mobile technology and government-led innovation, earning it the nickname ‘Silicon Savannah.’

Advantages and Disadvantages

Each Nigerian tech hub has its strategies and challenges in the rapidly evolving tech landscape. Here’s a closer look at their competitive advantages and the hurdles they face.

Akure

Akure is home to over ten co-working spaces. One notable example is The Hive Hub, a dynamic co-working space that connects passionate individuals who are eager to share, learn, and grow. The Hive Hub offers a co-working area, a mini lounge and resting space, a creative zone, high-speed internet, and a constant power supply. The Hive Hub has consistently made efforts to improve the tech ecosystem and bring technology to the grassroots level.

There are a few standout features that make Akure a promising tech community. The low cost of living is a significant advantage, as housing is affordable, utility costs are low, and tax burdens are minimal.

However, Akure still faces significant challenges with power supply and internet connectivity. These issues have posed serious hurdles for startups operating in the area.

Lagos

Lagos boasts a vibrant tech scene that attracted over $600 million in startup funding in 2023. The city’s active entrepreneurs drive creativity and growth. However, challenges like unreliable electricity and internet can slow things down. Additionally, Lagos is more expensive to live in, which aligns with its role as a commercial hub. 

Conclusion

Lagos remains the leading tech hub in Nigeria due to its robust financial resources, extensive talent pool, and robust infrastructure. However, Akure’s tech scene is growing fast, supported by government programs and lower costs, making it a strong competitor. Both cities showcase the diverse opportunities in Nigeria’s tech industry and are likely to collaborate to drive the country’s digital growth.