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Nigeria innovation hubs struggle amid power crisis – Report

The sustainability of several innovation hubs across Nigeria is increasingly being challenged by inadequate electricity supply, weak internet connectivity and limited funding, according to a new national assessment presented in Abuja on Thursday.

The findings were contained in the Nigerian Innovation Hub Assessment Report, presented by the Chairman of the Innovation Support Network, Hanson Johnson, who stressed the importance of innovation hubs in driving entrepreneurship, skills development and employment generation across the country, while calling for stronger policy backing and regulatory support to improve their effectiveness.

Johnson noted that although the Federal Government had made progress with the enactment of the Nigeria Startup Act, adoption at the sub-national level remained inconsistent, restricting the ability of innovators in many states to fully benefit from its provisions.

“The Federal Government has done well by making sure that the Startup Act is in place, but that’s at the national level. Some states have been smarter, some have failed to domesticate it at their own state level so that innovators at the sub-national level will be able to ride on that vehicle to connect to what is at the national level,” he said while ddressing journalists at a press conference for the report in Abuja.

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He further highlighted structural and regulatory hurdles affecting product development and commercialisation within the ecosystem.

“There are some products to build that we don’t have access to. It doesn’t make sense for you to have a N2bn licence before you come and build. There could be some sandboxes where you can try some things out because in tech-related spaces, you cannot test anything except you have access to data, information and some institutions,” Johnson stated.

On job creation, Johnson said innovation hubs could serve as key platforms for reducing unemployment by equipping young Nigerians with relevant skills and linking them to real economic opportunities.

“We want to train and connect 10,000 young Nigerians to opportunities by 2030. Not just training. The training is not the end game. Connecting them to opportunities and job creation is what matters,” he said.

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He explained that the initiative would be implemented through hubs nationwide using standardised training frameworks and quality benchmarks to ensure equal access regardless of location.

The report, unveiled by the ISN, provides a detailed mapping of Nigeria’s digital and industrial innovation ecosystem and was funded by GIZ Digital Transformation Centre Nigeria, with co-funding from the European Union and the German Federal Ministry for Economic Cooperation and Development.

It surveyed over 190 active hubs out of more than 250 active and semi-active innovation spaces across the country.

Findings showed that despite rapid ecosystem growth, more than 70 per cent of hubs operate on annual revenues below $50,000, reflecting significant financial vulnerability.

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The report also identified persistent infrastructure constraints, particularly power instability affecting over 60 per cent of hubs, unreliable internet access, and talent retention challenges.

Nigeria’s innovation landscape remains concentrated in a few major clusters, with Lagos accounting for 32 per cent of hubs and Abuja hosting 16 per cent.

Other emerging clusters include Kano, Kaduna, Enugu, Rivers State and Abia State, each representing smaller but growing shares of activity.

The study further revealed that about 68.35 per cent of hubs operate with fewer than 10 full-time staff, underscoring their small-scale and grassroots nature.

It also noted that most hubs have been established within the last five years, reflecting the rapid expansion of Nigeria’s innovation ecosystem.

Sector-wise, ICT, AgriTech, FinTech and EdTech dominate, accounting for roughly 60 per cent of all hub specialisations.

In addition, about 90 per cent of hubs provide structured training programmes, while 60 per cent offer mentorship services to startups and entrepreneurs.

Speaking at the presentation, the National Coordinator of the Office for Nigerian Digital Innovation, Victoria Fabunmi, described hubs as central to Nigeria’s digital transformation agenda.

“Strengthening Innovation Support Organisations across Nigeria is central to ONDI’s mandate. We recognise that hubs are not peripheral to the ecosystem; they are the connective tissue between talent, capital and opportunity. NITDA’s broader agenda depends on a network of capable, well-resourced hubs functioning as true innovation intermediaries,” she said.

Also speaking, the Commission Manager of GIZ Digital Transformation Centre Nigeria, Dr Thuweba Diwani, said the report would serve as a foundation for strengthening capacity-building efforts and establishing certification frameworks for hubs.

“This report is more than a document. It is a testament to the resilience, ambition and growing sophistication of Nigeria’s innovation ecosystem. This document is a good basis for developing and implementing capacity-building measures, including the hub audit and certification mechanism that is ready for piloting,” she said.

The ISN also used the event to unveil its 2026–2030 Strategic Direction and Ecosystem Outlook, which aims to expand hub capacity, deepen implementation of the Nigeria Startup Act, improve investment readiness, and support funding access for over 60 hubs, 150 startups and MSMEs.

Stakeholders at the event urged stronger collaboration between government, private sector and development partners to address infrastructure gaps, including renewable energy deployment for hubs, improved impact measurement systems, and better integration of grassroots innovation centres into national development planning.

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