The burgeoning blockchain sector in Nigeria, poised to reshape industries and boost economic growth, is facing a significant hurdle—an acute shortage of skilled professionals. This talent gap, experts warn, threatens to stifle the nation’s ambitions to capitalize on blockchain technology, despite its immense potential to transform financial transactions and other industries.
The warning came at the recent Businessday Blockchain Conference in Lagos, where industry leaders expressed concerns over the impact of the shortage on the sector’s development. Blockchain, which underpins the success of cryptocurrencies, is forecast to contribute $1.76 trillion to global GDP by 2030, and Nigeria’s government has launched a National Blockchain Policy to harness this opportunity. However, without the necessary talent, experts fear that the country may struggle to realize its full potential in this rapidly evolving field.
Lack of Blockchain Professionals Limiting Growth
Fure Eviosekwofa, CEO of Furex Technologies, shared insights during a panel discussion titled “Beyond Crypto: Exploring Blockchain Applications for African Businesses.” He emphasized how the scarcity of blockchain professionals has forced many companies to rethink their strategies. “Large firms have already scooped up the few skilled professionals available,” he said, highlighting the increasing competition for blockchain talent.
Echoing these concerns, Nathaniel Luz, CEO of Flincap, explained that Nigeria’s challenge is not a lack of talent but the inability to retain it. “Somebody is already earning US dollars. How do you employ the person as a Nigerian startup founder?” Luz remarked, pointing to the growing trend of Nigerian blockchain professionals being lured by better-paying opportunities abroad. He described the situation as a “blessing beginning to have a downside effect.”
With remote work opportunities expanding globally, local companies find it increasingly difficult to compete with international firms. “We have the qualified people, but they are already exposed to more opportunities,” Luz noted.
Global Talent Competition Poses Further Challenges
The global competition for blockchain developers is fierce. A 2022 report by Electric Capital revealed that North America and Europe accounted for 58% of the world’s blockchain developers, followed by Asia. The same report highlighted the rapid growth of blockchain talent in India, which increased from 2% in 2017 to 12% by early 2024. Though Nigeria’s specific numbers were not mentioned, the report noted that countries like Nigeria had gained a more significant share of global blockchain talent in recent years.
Chuta Chimezie, founder of the Blockchain Nigeria User Group (BNUG), explained that the country’s growth in blockchain talent is due to concerted efforts by industry stakeholders. “For instance, in 2020, we launched a blockchain 1000 initiative focused on helping to scale people interested in blockchain-based talent,” he said. However, Chimezie acknowledged that transitioning software developers into the blockchain space remains a challenge.
“It is not easy to win core software developers into blockchain,” he said, adding that efforts are being made to guide newcomers into the field from Web 2 to Web 3 technologies.
Building Talent from Scratch
While the talent pool has improved since 2018, gaps remain, as noted by Quidax CEO Buchi Okoro. “When we started in 2018, things were entirely different. Maybe you had a few blockchain developers who were not that good. So, what we did was build people,” Okoro said. He emphasized the need for companies to invest in talent development before focusing on building products.
However, Luz of Flincap pointed out the risks involved in training new talent. “To get talent now, one will train them from scratch,” he cautioned, highlighting the long-term commitment and resources required to develop blockchain professionals.
Competing on a Global Stage
Ezichim Onweagba, Quidax’s director of partnerships, highlighted the broader challenge of competing with international firms. “You (operators) want to transition from addressing just Nigerian markets to addressing global markets, which helps you compete for global talent,” he said, stressing the importance of having a global strategy to attract and retain the best talent.
With the Nigerian government’s blockchain policy acknowledging the critical need for high-quality professionals, experts at the conference urged universities to update their Computer Science curricula. They believe this step is essential to addressing the skill gaps and ensuring Nigeria remains competitive in the global blockchain space.
As Nigeria’s blockchain industry grows, the race is on to close the talent gap and build a workforce capable of driving innovation in this transformative sector.
