Lagos Can Be a Real Struggle for Digital Businesses
Nigeria’s bustling commercial capital, Lagos, often touted as a hub for innovation, paradoxically presents significant hurdles for digital businesses, particularly those in the mobility sector. This challenge became evident last year when Lagos authorities effectively halted bike-hailing operations by banning motorcycles from major roads. However, a contrasting narrative emerged from Ibadan, another Nigerian city, which has proven to be a conducive environment for bike-hailing startups like SafeBoda. The company recently celebrated its first anniversary in Nigeria, marking a remarkable milestone of over one million rides completed in Ibadan within approximately 13 months of operation. This success outside Lagos was a key topic during a Technext Twitter Spaces discussion with SafeBoda Country Manager, Babajide Duroshola, on “Running a Digital Business Outside Lagos.”
Lagos’ Apparent Disregard for Bike-Hailing Businesses
During the insightful discussion, Babajide Duroshola did not shy away from expressing his view on the Lagos state government’s stance towards bike-hailing startups. He revealed that, based on SafeBoda’s engagements and conversations with the Lagos state government, the company concluded that government officials simply do not recognize or value the importance of these bike-hailing businesses. This sentiment underscores a critical challenge for tech companies in Lagos: a perceived lack of understanding or appreciation from regulatory bodies for the value and economic contributions of digital mobility services. The regulatory environment in Lagos, therefore, often forces companies to reconsider their operational strategies or seek more accommodating cities, as SafeBoda successfully demonstrated by thriving in Ibadan.
The experience of SafeBoda starkly illustrates that while Lagos might offer a large market, its regulatory climate can stifle innovation and growth for digital businesses, especially those in the ride-hailing and mobility sectors. For startups looking to scale in the Nigerian tech landscape, exploring opportunities in cities like Ibadan, which offer a more supportive operational environment and less restrictive policies, might be a more viable path to achieving significant milestones and sustainable success outside the challenging Lagos ecosystem.
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