Abuja, Nigeria — Nigerian universities are under increasing scrutiny for their limited role in nurturing entrepreneurship and contributing to the nation’s startup ecosystem. A recent report, the *Nigerian Startup Ecosystem Report 2022* published by Disrupt Research, highlights that Nigerian universities lag behind institutions in Egypt and South Africa when it comes to supporting student and graduate entrepreneurship.
The report underscores Nigeria’s dynamic startup landscape. As of September 2022, the country boasted over 481 tech startups employing more than 19,000 people, with nearly half of these companies participating in acceleration or incubation programs. However, Nigeria’s universities have yet to match the supportive ecosystem offered by peer institutions in other African nations.
Startup Landscape and Investment
Nigeria’s tech startup ecosystem has seen remarkable growth, particularly in the fintech sector, which comprises over a third of all active tech startups. Between January 2015 and August 2022, Nigerian tech startups attracted over $2 billion in investment, a figure that outpaced other African countries in the same period. Leading universities—such as the University of Ibadan, Obafemi Awolowo University, and the University of Lagos—have taken steps to offer entrepreneurship-focused courses and establish innovation centers, yet the impact remains limited compared to counterparts in Egypt and South Africa.
The report points out that institutions like the American University in Cairo, Egypt, and South Africa’s University of Cape Town and Stellenbosch University have successfully integrated entrepreneurship through dedicated incubators and accelerators that support both internal and external startups. These institutions have gone further by investing in startups, taking equity stakes, and creating a pipeline for students to transition from academia to entrepreneurship.
Calls for Action: Expanding University Roles
Dr. Stephen Oluwatobi, founder of the Hebron Startup Lab at Covenant University, emphasized the need for Nigerian universities to teach core skills that go beyond technical knowledge. “Nigerian universities must prioritize three essential skill sets: technical skills, life skills (like leadership and communication), and entrepreneurial skills,” Oluwatobi stated. “Without an entrepreneurial mindset, graduates face limited prospects and often lack the skills needed to tackle real-world problems effectively.”
Oluwatobi advocates for a broader approach in which universities act as “factories” for startup creation, not just by producing graduates but by fostering skills that allow students to identify and solve market-relevant problems. “Universities should measure success not by the number of graduates or the number of first-class degrees, but by how many of their graduates are creating high-growth startups that generate jobs and contribute to GDP,” he added.
Bridging the Gap: University-Industry Partnerships
Strengthening university-industry relationships is another critical area, according to Oluwatobi. “Faculty members need exposure to real-world industry problems. Allowing them to intern or take sabbaticals in industry could transform how they teach, challenge, and inspire students,” he explained. By engaging directly with industry, educators could better prepare students for the evolving demands of the job market and encourage a practical, problem-solving mindset.
Oluwatobi’s own experience at Covenant University’s Centre for Entrepreneurial Development Studies highlights the positive impact of involving entrepreneurs in teaching and mentoring. His initiative, the Hebron Startup Lab, connects students with alumni entrepreneurs, helping them intern with startups and guiding them through the journey from idea to market. This approach has led to the success of several startups founded by Covenant graduates, including PiggyVest, Korapay, and ThriveAgric.
Rethinking Success Metrics for Universities
The current approach of Nigerian universities, which emphasizes graduation rates and academic performance, is no longer sufficient, Oluwatobi argued. “Universities need to see their success through the lens of their graduates’ contributions to the economy—whether they’re creating successful businesses, generating employment, or adding to GDP,” he explained.
Oluwatobi’s 2019 study, “Entrepreneurial Ecosystem Matrix (EEM): A Framework for Nigerian Universities to Become Startup Factories”, proposes an integrated approach to fostering entrepreneurship in Nigerian universities. This includes creating platforms for value generation from ideas and prototypes, cultivating an entrepreneurial mindset, and establishing an enabling environment with support from industry partnerships, technology transfer offices, and access to experimental spaces.
As Nigeria’s startup ecosystem continues to attract investment, many are hopeful that Nigerian universities will rise to the challenge and develop the next generation of entrepreneurs who can transform the nation’s economy. However, without a stronger commitment to entrepreneurial education and practical experience, Nigeria risks missing out on the full potential of its youth and its burgeoning startup landscape.
