The tech ecosystem in Nigeria is admittedly one of the biggest tech systems in Africa, with about 481 tech startups across Nigeria as of August 2022, and 19,000 people between them. Most of this saturated part of the African tech ecosystem is manned by the Nigerian sector, which also boasts of being the fastest-growing sector in the MEA region (Middle eastern and African Region). With almost 40% of the country’s tech startups operating along fintech, it is the most populated tech sector in the country.
Among all these big figures and supposedly advancing ecosystems, there is a shortage of woman's power. It isn’t a much-diversified system. Statistics show that less than 15.6% of tech startups have a female founder/co-founder, or a woman generally in the founding team. The numbers don’t go up as well in the hired labour sector.
Two major factors influence the underrepresentation in Nigerian and they are two sides of the same coin. The gender bias. This bias accounts for the many reasons why tech is not a strong suggestion to the female gender in this part of the world and the two angles this bias has been examined from are;
· The Financial
· Non-financial bias (cultural, religious, and socio-economic bias)
Access to finance is a significant barrier for Nigerian small businesses, particularly those owned by women. Banks are often hesitant to lend to small businesses due to the difficulty in assessing and managing credit risks. This reluctance has resulted in banks imposing stringent screening measures and requirements, discouraging small and medium-sized businesses from applying. Lack of adequate collateral and difficult application procedures are frequently cited as major obstacles by Nigerian technology firms seeking loans. Other, more personal financial challenges have dwarfed my progress in the tech world, like my financial incapacity to capitalize on a given opportunity.
An instance of this financial incapacity would be a story of one of my many adventures while trying to break into the tech ecosystem. I had received a prompt from one of my mentors to apply for a paid internship, which I didn’t know it was at the time. The application process was rigorous and stressful, but at the end of the day, I had fulfilled all their requirements except for; the money. I was devastated, exhausted, frustrated, and for a time, depressed. I hoped I’d get the internship and use it as a stepping stone to climb the corporate tech ladder. I had daydreams that ignited my zeal too. Rejection is a part of the journey, but that’s not what we’re here to talk about. In some cases, there are financial commitments that are seldom met by the Nigerian populace because of the nature of our economy and labour.
According to some research conducted by the centre for global development (in collaboration with the women’s technology empowerment sector), roughly 60% of tech firms report access to credit as a major or severe barrier. Respondents say it is difficult to find financial support to maintain or expand their operations. Female start-up founders are less likely to secure funding than their male counterparts. It has been discovered that local investors related better with men. Odunayo Eweniyi, one of the founders of the fintech start-up piggy-vest decided to stop attending investment meetings, leaving the company's funding to her two male co-founders when her company attempted to raise capital.
Non-financial barriers are also significant. Some mentor figures or higher hands in the business/ field are unlikely to mentor a female tech entrepreneur because of the risks of unprofessionalism from either party. There are cultural beliefs that hinder some of them from establishing professional relationships with female tech entrepreneurs because they could be easily misconstrued. According to research from other parts of the world, women who start businesses have smaller networks than male entrepreneurs. Men have more social connections than women, which allows them to access more opportunities, information, and contacts. Women are already at a disadvantage because they need more professional connections, role models, and mentorship opportunities.
There are negative cultural stereotypes associated with females combined with ignorance ("long hours on a computer without any "tangible" product"), and these may be reasons why fewer women enter the tech sector. Sometimes it is a young woman's parents who discourage her from pursuing a career in technology because it is perceived to be less "feminine."