Technology isn’t enough

History is littered with groundbreaking technologies that failed, not because they weren’t brilliant, but because no one cared.

The last five years have been massive for the Nigerian (and African) tech ecosystem. We’ve seen massive raises, celebrated high-profile exits, and watched the ecosystem explode. While you’d expect these milestones to translate into broader economic impact (job creation, revenue generation, and industry growth), the reality is starkly different.

Nearly half of funded startups in the past decade make less than ₦10 million (or $6,000) annually, according to a new report by TLP Advisory.

Of course, there are underlying causative factors like weak government policies, currency devaluation, skyrocketing inflation, or the declining purchasing power of Nigerians.

But beyond these, we have an even bigger problem; we have a fixation on “great” technology without a clear business case. Many Nigerian startups are in love with the idea of innovation but refuse to address whether that innovation solves real, paying problems for their market.

“But its the same everywhere in the world.”

Well, the west can afford to romanticize tech a little bit (they’ve already built successful tech business and have R&D budgets larger than the GDPs of entire Nigerian states). We simply do not (yet) have that luxury.

Nigeria’s market is brutally unforgiving. People don’t care if your app is powered by AI or Blockchain technology unless it can reliably solve the problems that matter most to them. Yet, many startups continue to focus on building flashy tech while forgetting to build something equally important; a business.

The first reason why this makes no sense to me is that, given our limited resources, we will never be able to actually CREATE new technology and all our “great technology” is actually just fancy products from existing technology.

Now, I have no issue with building great technology. On the contrary, my teammates will tell you how much of a pain in the ass I am about the tiniest details of our product.
My issue is with startups that obsess over building the nicest piece of tech while ignoring the primary reason they’re in business — to attract customers and make a profit.

A regular response to my argument is that “if you build a great product, then customers will come.”
Well, technology giants like Apple, Tesla, and Microsoft churn out billions of dollars annually in events and marketing to acquire and retain customers for their suite of unarguably, market-leading products.
These companies don’t just rely on the greatness of their products, they actively fight for customer attention and loyalty every day.

If companies that have already conquered the global market need massive operations and marketing investments, what makes anyone think a local Nigerian startup can sit back and let customers “just show up”?
Operations and marketing are even more important when building local technology because there are a host of economic and geographic barriers to the adoption of any new product.

Even when startups manage to craft a clear business model (very big if here), their execution often leaves much to be desired. It’s not enough to hire a marketing team and onboard a few salespeople, you need to choreograph your business operations in a way that gets your product into customers’ hands and keeps it there.

Unless startups learn how to do this effectively, their business-facing teams will remain fractional, reactive, and barely impactful, and they’ll remain stuck chasing goals they’ll never quite hit.

All of our biggest success stories have towed this path. Moniepoint didn’t create the largest agent network for payments services in the country without solid business execution, neither does Chowdeck manage over 3,000 riders just by having “great tech.”

In a market like ours where customers have to debate spending money on your product vs using the money for food, and other living essentials, we must be very smart about what products we build firstly, but also, and maybe more importantly, we must become better businesses.

A few ideas:
1. Prioritize Market Validation Early
Before you write a single line of code, ask yourself: Does this product solve a real problem? Test your idea with potential customers. Gather feedback. If no one is excited about your concept, no amount of code will fix that.

2. Focus on Revenue From Day One
Stop chasing vanity metrics like app downloads or website traffic if they don’t translate to money in the bank. Revenue is your lifeline. Figure out how you intend to make money and test that model as soon as possible.

3. Invest in Growth Teams
Hire a team of professionals focused on business growth: revenue operations, sales, marketing, and customer success. Ensure that you have a plan to meet your prospects at every step of their customer journey.

4. Build for Your Audience, Not Your Ego
Don’t build products because you think they’re cool; build products that customers actually need. The average Nigerian will not use crypto to pay for bread, use your head.

Admittedly, doing all of these is no guarantee of success as a technology business in Nigeria. In fact, given our current realities, the odds are not in your favor at all. That’s why you must try not to be an obstacle in your own way. Focus on what matters, get out of your own head, and be a businessperson.