Innovation Hubs: The Role of Growth-Focused Innovation Hubs in Nigeria

Innovation hubs are dynamic ecosystems designed to foster creativity, collaboration, and technological advancements. These spaces bring together entrepreneurs, startups, investors, and industry leaders to drive economic growth through innovation.

In Nigeria, where the digital economy is rapidly expanding, innovation hubs have become catalysts for technological disruption, business incubation, and skill development. Nigeria hosts approximately 90 active tech hubs, making it the largest concentration in Africa and positioning the country as a continental leader in technological innovation. 

Among Nigeria’s growing network of hubs, Spacefinish, has been instrumental in shaping functional, growth-driven spaces that enable entrepreneurs to thrive. Similarly, CcHub, one of Africa’s most recognized tech incubators, has nurtured startups with funding, mentorship, and strategic partnerships.

UNDP Innovation Hub (Centre for Research, Innovation and Development) at the Lagos State University, designed by Spacefinish

The Rise of Innovation Hubs

The demand for innovation hubs in Nigeria has surged, driven by an increasing focus on digital transformation, entrepreneurship, and talent development.

According to the GSMA Mobile Economy Report, Africa’s tech startup ecosystem attracted over $6 billion in venture funding between 2020 and 2023, with Nigeria leading in investment inflows. This growth highlights the essential role of innovation hubs in fostering an enabling environment for startups.

A recent World Bank report also indicates that the number of growth-focused spaces and incubators in Nigeria has doubled over the last five years, particularly in tech-driven cities like Lagos, Kwara and Abuja. The rise of remote work, corporate innovation programs, and demand for digital skill-building has further fueled this expansion.

The concept “designing for impact" as pioneered by Spacefinish, a workspace strategy firm ensures workspaces are not just functional but also foster creativity. While Innovation Hubs at large keep expanding programs to include impact-driven research and deep-tech support.

The Ilorin Innovation Hub powered by IHS Towers, designed by Spacefinish at Kwara State, Nigeria.

What’s Stopping Innovation Hubs from Scaling?

Despite their success, innovation hubs in Nigeria face several challenges that could hinder their long-term sustainability. Asides funding constraints, other challenges exist. Temi Kolwole, MD Ilorin Innovation Hub describes it as;

The biggest challenges facing innovation hubs are the lack of proper mentorship and result-oriented programs. Many hubs get caught up in driving activities without impact but how many of the participants/products make it past the program stage to succeed? Infrastructure has improved over the years but energy-efficiency is still an issue that affects operating costs and profitability. This is why we have taken the green approach and rely mostly on solar energy. Last but not least is funding. Funding exists, but so many of our start-ups aren’t frugal or lean and end up burning through their runway much faster than they should. We have an approach to managing operating costs and ensuring reasonable pay to ensure startup success.

What is the impact of innovation hubs?

Innovation hubs have significantly influenced Nigeria's socio-economic landscape, particularly in technology and entrepreneurship. Key data points illustrating their impact include:

The Information and Communication Technology (ICT) sector, bolstered by numerous innovation hubs, contributed 19.54% to Nigeria's Gross Domestic Product (GDP) in recent years. Of the seven tech unicorns in Africa, five are Nigerian, underscoring the country's robust startup ecosystem fostered by innovation hubs.

The tech industry, supported by innovation hubs, has generated numerous employment opportunities, contributing to economic diversification and reducing reliance on traditional sectors. In the first nine months of 2023, Nigeria's tech sector attracted over $1.4 billion in investments, with ten start-ups securing $244.34 million, highlighting the sector's appeal to investors.

SpaceNXT by Union Bank, an Innovation Hub - designed by Spacefinish

What does the future hold for innovators?

Looking ahead, innovation hubs in Nigeria are poised for continued expansion, but their growth trajectory will depend on adaptability and ecosystem collaboration.

Decentralization of Hubs: While Lagos remains Nigeria’s tech hub, cities like Abuja, Kwara, Niger, Kaduna, and Port Harcourt are witnessing a rise in innovation spaces.

Corporate-Backed Hubs: More corporations are investing in innovation labs to stay ahead of disruption and support entrepreneurship. With institutions like UNDP, IHS Towers investing in the future of work through innovation labs.

As Nigeria continues its digital transformation, innovation hubs will remain essential in fostering business growth, developing talent, and positioning the country as a leading technology hub in Africa. To ensure the long-term success of innovation hubs, stakeholders—including government bodies, investors, and industry leaders—must actively support their growth.