Professor Olufemi Shuaib, a Lecturer at the University of Lagos, has warned that Nigeria’s growing focus on technology skills and digital solutions is reportedly driving talent and jobs away from the local economy rather than creating domestic value.
He made the remarks last month at Protea Hotel, Alausa, Ikeja, during the Economic Roundtable Discussion organized by the Economic Intelligence Department of the Lagos State Ministry of Economic Planning and Budget.
The expert highlighted that while young professionals are gaining personal benefits through app development and digital services, the country is losing economic value as most solutions cater to foreign markets rather than producing locally-marketed goods or industrial technology.
What they are saying
According to the expert, many students with economics backgrounds are now developing applications for international transactions, rather than solutions that build domestic value.
“All this tech, tech, tech, tech we are promoting. We need to have a second look very well. If we are creating people who can do content development, digital marketing, and we don’t have anything to sell in Nigeria, all we do is that we are also compounding the local problem. Because we are transferring jobs away,” Shuaib said.
“They develop apps that help you buy overseas. They develop apps that help you transfer money overseas. They are actually personally gaining values, but the economy is losing values,” he added.
Call for industrial technology focus
Shuaib suggested a shift from information technology toward industrial technology that produces tangible value within Nigeria.
“Can we go from information technology to industrial technology? Where people build apps that can produce even ordinary technology so that we have a value created in Nigeria that we can market to the world?” he questioned.
He further emphasized the role of government in redirecting public-private partnerships to support engineering talent capable of creating locally produced technology.
“The private sector cannot do that because there is no big immediate benefit to the private sector. So, it’s the public. Can we begin to redirect our public-private partnership that identifies some people who are very talented in engineering and go and support them, I guess, to be able to produce those small, small things with import overseas and begin now to have that value that we are creating in Nigeria?”
The expert warned that a continued reliance on imported ready-made products leaves Nigeria dependent on foreign markets and vulnerable to global disruptions.
He emphasized that building local technology and industrial products would allow the country to create its own value, strengthen economic resilience, and better withstand shocks affecting the global economy
What you should know
Nigeria is finalizing a new Nigerian Industrial Policy to shift the economy away from import dependence and strengthen local manufacturing. The policy is aimed at increasing the manufacturing sector’s contribution to GDP and cutting reliance on raw material exports. It targets high‑potential areas like textiles, automotive, agro‑processing and pharmaceuticals to drive job creation and diversify exports
- Data from recent GDP reports show that manufacturing has maintained a relatively small share of the economy. The sector accounted for around 8.64% of total GDP in 2023; it declined to 8.41% in 2024, highlighting its relatively low share in the economy.
- Nigeria’s dependence on imported goods remains high. Imported manufactured goods were valued at N8.47 trillion in the fourth quarter of 2024, while total imports rose to N16.59 trillion. China is the largest source at N4.61 trillion, followed by India, Belgium, the United States, and France.
- Meanwhile, Nigerian tech startups have seen significant funding activity in recent years, with the ecosystem attracting major capital and producing high‑growth companies. In 2024, tech startups in Nigeria raised over $400 million, anchored by large rounds like Moove’s $110 million Series B and Moniepoint’s $110 million Series C.
This year, the funding momentum continued, with Nigerian startups raising $93.4 million in October alone, a 130.6% increase from the previous month.
On the domestic front, Nairametrics reports that Lagos has emerged as the hub for tech capital, attracting more than $6 billion between 2019 and 2024, making it home to the majority of the country’s unicorns and high-growth startups.
