Lagos is steadily growing as Nigeria’s technology hub, with venture capitalists investing in banking and educational institutions, technology and startup companies. It has turned into a major attraction for enthusiasts and media people from all over the world.
The most populated city of the Nigerian State- Lagos has become one of the fastest growing cities in the world today. The Yaba area, home to the Yaba College of Technology and the University of Lagos has come up as a strongly emerging technology ecosystem. This megacity has the fourth highest GDP in Africa. Lagos is home to a multitude of MNCs because of its favorable socio-economic conditions and vast population. This combination makes it a large market for any product or service provider to set up a firm in the state.
Lagos had hired global consultancy firm Accenture, following which they purchased 30,000 square meters of land around the city area for the Yaba project. This vibrant technology cluster was well planned to generate 2,50,000 jobs for the country’s youth. Over 50% of Nigeria’s industrial capacity is located here, with a range of manufactured goods being produced in the city, including electronics, machinery, chemicals, food and beverages.
Businesses like booking site Hotels.ng, digital labs for Nigeria’s oldest bank, First Bank of Nigeria Ltd., and Stanbic IBTC, are the local subsidiary of Africa’s largest lender. These have been instrumental in escalating the nation’s growth by attracting Fortune hundred companies like – Facebook Inc. and Alphabet Inc.’s Google. The economy has experienced exponential growth from fewer than 10 startups back in 2013 to more than 60 today. Nigeria has signed bilateral investment agreements with top global players -Algeria, Bulgaria, China, Egypt, France, Finland, Germany, Italy, Jamaica, Montenegro, Netherlands, North Korea, Romania, Serbia, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Turkey, Uganda and United Kingdom.
As the government realized the potential of internet technology ecosystem, it offered a way to boost an oil-reliant economy slowly recovering from crude’s slide to a 12-year low in January 2016.
Lagos state tax system remains the kingpin for business development with 33% of effective tax rate and 10% of capital gains. There are 17 forms of taxes in Lagos State and 47 different payments to be made to remit all taxes. It takes just 6 weeks to compute and file taxes annually.
Yaba was established to deepen advance technology, including Artificial Intelligence, Augmented Reality, Machine Learning, Internet of Things, among others in the country. With such impressive growth figures coming in, Facebook has taken up the initiative to empower about 50,000 young Nigerians with digital training to enhance their skill matrix. Facebook further claimed their keen interest on aiding a robust technology ecosystem in the country.
Lagos continues to give the tech community in Nigeria an identity of being the largest economy in the country, 5th largest in Africa and the 7th fastest growing city in the World. The city has been rightly nicknamed as “The Center of Excellence”.