Persistent Power Outages Threaten Nigeria’s Innovation Hubs Report

A new report has warned that persistent power outages, poor internet connectivity and weak funding are threatening the survival of Nigeria’s innovation hubs, raising concerns over the future of entrepreneurship, digital skills development and startup growth across the country.

by folarin aluko

Nigeria’s growing technology and innovation ecosystem is facing mounting pressure from unreliable electricity, poor internet access and inadequate funding, according to a new industry assessment unveiled in Abuja.

The findings were presented on Thursday by the Chairman of the Innovation Support Network, Hanson Johnson, during the unveiling of the Nigerian Innovation Hub Assessment Report.

According to Johnson, innovation hubs across the country continue to serve as critical centres for entrepreneurship, digital skills training and job creation, particularly for young Nigerians, but persistent infrastructural and regulatory challenges are threatening their survival and long-term growth.

He noted that frequent power outages remain one of the biggest operational challenges confronting innovation centres, forcing many hubs and startups to depend heavily on expensive alternative energy sources to stay functional.

Poor internet connectivity and limited access to sustainable funding were also identified as major obstacles slowing the growth of Nigeria’s tech ecosystem.

Johnson acknowledged the Federal Government’s efforts in establishing the Nigeria Startup Act, describing it as a positive step toward supporting innovation and startup development nationwide.

However, he expressed concern that several state governments have yet to domesticate the law, limiting the ability of innovators at the state level to fully benefit from the opportunities and protections provided under the legislation.
“The Federal Government has done well by making sure that the Startup Act is in place, but some states have failed to domesticate it so innovators at the sub-national level can connect with what exists nationally,” he said.

He also highlighted the regulatory hurdles many innovators face while trying to develop and scale products in Nigeria’s technology sector.

According to Johnson, some licensing structures and institutional requirements remain too expensive or restrictive for young startups and emerging innovators.
“It doesn’t make sense for you to have a N2bn licence before you can build,” he stated.

He called for the creation of regulatory sandboxes that would allow innovators to safely test products, access data and collaborate with institutions without facing overwhelming financial and bureaucratic barriers.

The report further stressed that innovation hubs have the potential to significantly reduce youth unemployment by equipping Nigerians with practical digital and entrepreneurial skills while connecting them to jobs and business opportunities.

Nigeria’s tech ecosystem has grown rapidly over the past decade, attracting international investment and producing several globally recognised startups. However, industry stakeholders continue to warn that poor infrastructure, inconsistent policies and limited institutional support could slow progress if left unresolved.

Experts say strengthening electricity supply, expanding broadband access and improving startup-friendly regulations will be crucial to sustaining Nigeria’s position as one of Africa’s leading technology markets.

As economic pressures continue to affect businesses nationwide, many innovation hubs are now calling for stronger collaboration between government agencies, private investors and development organisations to prevent the collapse of critical spaces driving innovation and digital transformation.