Nigerian Businesses & Tech Firms Must Shift Focus to Problem-Solving—Expert Insight

In a rapidly evolving economic and technological landscape, Nigerian businesses—especially tech startups—are being called upon to rethink their approach. According to Lekan Dada, a prominent industry voice, the nation’s enterprises must become more problem-focused rather than merely chasing trends or chasing capital. This shift, he argues, is critical for sustainable growth, job creation, and positioning Nigeria as a leader in Africa’s innovation space.

Why Problem-Solving Matters for Nigeria’s Economy

Nigeria’s business ecosystem is vibrant but fragmented. While the country boasts a growing tech sector—often dubbed ‘Africa’s Silicon Savannah’—many startups and established firms still struggle with scalability, profitability, and relevance in a competitive market. Dada’s perspective highlights a gap: too many businesses are reactive rather than proactive. They invest in products or services without deeply understanding the pain points of their target audiences.

From Trends to Tangible Impact

Dada’s call to action emphasizes that Nigerian businesses—particularly in tech—should move beyond ‘cool’ innovations that lack practical utility. For example, while fintech has seen explosive growth in Nigeria, many solutions cater to urban elites rather than the 60% of Nigerians still unbanked or underserved. Similarly, e-commerce platforms often prioritize flashy features over addressing logistics challenges in cities like Lagos or Port Harcourt, where last-mile delivery remains a hurdle.

‘The problem with many Nigerian startups is that they build products first and then look for problems to solve,’ Dada notes. ‘This approach often leads to wasted resources and failed ventures.’ Instead, he advocates for a ‘problem-first’ methodology: identifying real societal or industry challenges before designing solutions.

Case Studies: Where Nigeria Excels (and Where It Falls Short)

Nigeria has already demonstrated success with problem-focused innovation. Companies like Flutterwave (payment solutions for unbanked populations) and Andela (tech talent development) thrived by addressing critical gaps. However, Dada points out that these are exceptions rather than the norm. Many startups, he argues, prioritize venture capital funding over customer impact, leading to unsustainable business models.

Consider the Kano and Abuja tech scenes, where innovation hubs are burgeoning. While these regions produce talent, Dada warns that without a problem-driven mindset, even the most promising startups risk becoming ‘unicorns in name only’—high-profile but ultimately irrelevant to Nigeria’s core challenges.

The Role of Government and Stakeholders

Dada’s insights extend beyond individual businesses. He calls on policymakers, investors, and educational institutions to foster an ecosystem that rewards problem-solving over hype. For instance:

• Investors: Fund startups that demonstrate real-world impact—not just rapid user growth or valuation milestones.
• Government: Align incentives (tax breaks, grants) with ventures that tackle national priorities, such as agriculture tech, healthcare access, or renewable energy.
• Educational Institutions: Integrate design thinking and problem analysis into STEM curricula to produce graduates who can innovate with purpose.

What This Means for Nigerians

For the average Nigerian—whether an entrepreneur, job seeker, or consumer—the implications are clear:

1. Job Creation: Problem-focused businesses are more likely to hire locally and create scalable roles, reducing unemployment in cities like Lagos and Kano.
2. Cost Savings: Solutions tailored to Nigerian challenges (e.g., Port Harcourt’s infrastructure gaps or Abuja’s digital divide) can reduce reliance on imported goods and services.
3. Global Relevance: Nigeria’s tech sector gains credibility when its innovations address pan-African or global problems, attracting foreign partnerships and investment.

‘The most successful businesses are those that don’t just ask, “What’s the next big thing?” but rather, “What’s the problem we can solve today?”’

How Nigerian Businesses Can Start Today

Dada’s advice is actionable. Here’s how Nigerian entrepreneurs and firms can adopt a problem-first approach:

• Market Research: Conduct deep dives into underserved communities—whether in rural Nigeria or informal settlements—to identify unmet needs.
• Collaborate with Experts: Partner with NGOs, academics, or local leaders to validate problems before building solutions.
• Pilot Small: Test minimal viable products (MVPs) with real users to refine offerings iteratively.
• Measure Impact: Track metrics beyond revenue—such as user satisfaction, community adoption, or cost savings—to prove social value.

The Bigger Picture: Nigeria’s Place in Africa

Nigeria’s ability to lead Africa’s innovation agenda hinges on its businesses solving African problems with African ingenuity. Dada’s perspective aligns with broader trends: countries like Kenya (with M-Pesa) and South Africa (with fintech and healthtech) have thrived by prioritizing local relevance. If Nigerian startups adopt a problem-focused ethos, the country could emerge as the ‘problem-solving hub’ of the continent.

Yet, the path isn’t without challenges. Cultural shifts, funding biases, and regulatory hurdles must be addressed. Dada’s call is a reminder that innovation without intention is just noise. For Nigeria to harness its potential, businesses must ask: ‘What problem are we solving?’ before asking ‘How much will this cost?’ or ‘Who will invest?’.

The answer could redefine Nigeria’s economic trajectory—and inspire the next generation of African entrepreneurs.