Nigerian software industry struggling with talent drain, skills gap, others

The Managing Director, Zequence Digital, Mr Oludamilola Adeoye, says that the Nigerian software production industry is struggling with a significant talent drain and a skills gap that is hindering its growth and competitiveness.

Adeoye told newsmen in an interview on Monday in Lagos that the sector was also facing major hurdles related to funding and infrastructure.

He said that brain drain was a major issue, with skilled developers migrating to global companies due to better pay and working conditions.

Adeoye also noted a critical skills gap, citing a mismatch between academic curricula and the needs of the industry, which puts pressure on recent graduates to seek additional training.

“Nigerian developers often have limited exposure to global best practices, which further widens the skills gap and affects their ability to compete internationally,” Adeoye said.

To address these talent issues, Adeoye suggested several strategies, including industry-led bootcamps and mentorship programmes which could bridge the industry readiness gap.

He said these programmes should be a collaborative effort between tech companies, universities and international partners.

“We should establish remote work partnerships with global firms, enabling our local developers to work for international clients while residing in Nigeria.

“This will help reduce brain drain and create more opportunities for our developers to grow and contribute to the global tech industry,” Adeoye said.

On the infrastructure front, the managing director pointed to significant hurdles, including unstable power supply and high internet costs.

He noted that limited broadband penetration was a particular challenge in underserved communities.

Adeoye also highlighted the industry’s reliance on foreign cloud services due to a lack of local data centres, which raised concerns about latency and foreign exchange volatility.

He added that while talent and infrastructure are key issues, the sector also faced significant funding challenges.

He pointed to the scarcity of early-stage funding and the high-interest loan rates, which, he said, are often above 20 per cent and made them unattractive for startups.

Adeoye further advised that Nigerian software companies should focus on fintech for emerging markets, as well as other underserved niches such as agri-tech, edu-tech and hospitality.

He said these areas still had a lot of manual processes that presented significant opportunities for digital transformation, including leveraging Artificial Intelligence (AI) solutions for the informal sector.

Speaking on mentorship, Adeoye stressed its crucial role in empowering young Nigerians.

Adeoye said mentors could offer personalised career guidance and help developers build confidence, resilience and a growth mindset.

According to him, this was achievable through tech events, webinars and forums where thought leaders could engage with mentees.