• Home
  • About Us
  • Contact
Sunday, January 11, 2026
News On Spot
  • Home
  • News
    Tax Identification

    FIRS Clarifies: Nigerians Don’t Need Physical Tax ID Card as NIN Becomes Official Tax ID…

    Public Holiday

    FG Declares December 25, 26 and January 1 as Public Holidays for Christmas, Boxing Day and New Year…

    Tinubu

    Tinubu Nominates New Heads for NUPRC and NMDPRA After Sudden Resignations…

    Senator Lawrence Ewhrudjakpo

    Bayelsa Declares Three Days of Mourning for Late Deputy Governor Lawrence Ewhrudjakpo…

    NIMASA

    NIMASA Denies Ownership, Registration of VLCC MV Skipper Arrested by US Navy…

    Ibukunoluwa Otesile

    Kidnapped JCI Ibadan President, Ibukunoluwa Otesile, Regains Freedom…

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Business
  • Entertainment
    • All
    • Gaming
    • Movie
    Adekunle Gold and Simi

    Adekunle Gold and Simi Welcome Twins, Expand Their Family…

    Egbuson

    Timini, Dakore Loses Father, Samuel Oyindobra Egbuson…

    Onyeka Onwenu

    Late Onyeka Onwenu Shines in Final Screen Role as ‘To Adaego With Love’ Hits Cinemas February 2026…

    JaceBen

    JaceBen Unveils New Single “Ilẹkẹ” – Now Live On Apple Music, Dropped Also On Spotify…

    FirstBank

    FirstBank Unveils First-Ever Premium Seating Experience at Carnival Calabar & Festival 2025…

    JaceBen

    JaceBen to Release New Single “ILEKE” on December 31…

  • Health
  • Lifestyle
    • All
    • Food
    • Travel
    Salary

    10 Smart Ways to Make Your Salary Last All Month…

    “How was your night?”

    Why “How Was Your Night?” Isn’t Always the Right Greeting – And What to Say Instead…

    Priscilla Ojo

    Priscilla Ojo Clarifies Rumours About Juma Jux’s Store Amid Tanzania Election Unrest…

    Gates

    Inside the Gates Legacy: Bill and Melinda Gates Teach Their Children Wealth With Purpose, Not Inheritance…

    Sleep

    If You Sleep Less Than 6 Hours, Read This Before It’s Too Late…

    Tacha

    Tacha Pushes Through Power Outages in Guinness World Record Makeup Challenge…

    Trending Tags

    • Golden Globes
    • Game of Thrones
    • MotoGP 2017
    • eSports
    • Fashion Week
  • Politics
  • Sports
  • Tech
    • All
    • Apps
    • Gadget
    • Mobile
    MultiChoice

    Is DStv Too Expensive? Nigerians Ditch Pay TV Over Price Hikes…

    Microsoft

    Microsoft To Shut Down Lagos Centre, 200 Jobs At Risk…

    Multichoice

    DSTV Price Hike: More Nigerians Consider SLTV, Others…

    NIMC

    Guide On How To Register For & Use The New 2024 NIMC Self Service Portal…

    Mobile Data

    Reasons Why Your Mobile Data Ends Quickly…

    Elon Musk

    Elon Musk Unveils New Name, Logo For Twitter…

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • News
    Tax Identification

    FIRS Clarifies: Nigerians Don’t Need Physical Tax ID Card as NIN Becomes Official Tax ID…

    Public Holiday

    FG Declares December 25, 26 and January 1 as Public Holidays for Christmas, Boxing Day and New Year…

    Tinubu

    Tinubu Nominates New Heads for NUPRC and NMDPRA After Sudden Resignations…

    Senator Lawrence Ewhrudjakpo

    Bayelsa Declares Three Days of Mourning for Late Deputy Governor Lawrence Ewhrudjakpo…

    NIMASA

    NIMASA Denies Ownership, Registration of VLCC MV Skipper Arrested by US Navy…

    Ibukunoluwa Otesile

    Kidnapped JCI Ibadan President, Ibukunoluwa Otesile, Regains Freedom…

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Business
  • Entertainment
    • All
    • Gaming
    • Movie
    Adekunle Gold and Simi

    Adekunle Gold and Simi Welcome Twins, Expand Their Family…

    Egbuson

    Timini, Dakore Loses Father, Samuel Oyindobra Egbuson…

    Onyeka Onwenu

    Late Onyeka Onwenu Shines in Final Screen Role as ‘To Adaego With Love’ Hits Cinemas February 2026…

    JaceBen

    JaceBen Unveils New Single “Ilẹkẹ” – Now Live On Apple Music, Dropped Also On Spotify…

    FirstBank

    FirstBank Unveils First-Ever Premium Seating Experience at Carnival Calabar & Festival 2025…

    JaceBen

    JaceBen to Release New Single “ILEKE” on December 31…

  • Health
  • Lifestyle
    • All
    • Food
    • Travel
    Salary

    10 Smart Ways to Make Your Salary Last All Month…

    “How was your night?”

    Why “How Was Your Night?” Isn’t Always the Right Greeting – And What to Say Instead…

    Priscilla Ojo

    Priscilla Ojo Clarifies Rumours About Juma Jux’s Store Amid Tanzania Election Unrest…

    Gates

    Inside the Gates Legacy: Bill and Melinda Gates Teach Their Children Wealth With Purpose, Not Inheritance…

    Sleep

    If You Sleep Less Than 6 Hours, Read This Before It’s Too Late…

    Tacha

    Tacha Pushes Through Power Outages in Guinness World Record Makeup Challenge…

    Trending Tags

    • Golden Globes
    • Game of Thrones
    • MotoGP 2017
    • eSports
    • Fashion Week
  • Politics
  • Sports
  • Tech
    • All
    • Apps
    • Gadget
    • Mobile
    MultiChoice

    Is DStv Too Expensive? Nigerians Ditch Pay TV Over Price Hikes…

    Microsoft

    Microsoft To Shut Down Lagos Centre, 200 Jobs At Risk…

    Multichoice

    DSTV Price Hike: More Nigerians Consider SLTV, Others…

    NIMC

    Guide On How To Register For & Use The New 2024 NIMC Self Service Portal…

    Mobile Data

    Reasons Why Your Mobile Data Ends Quickly…

    Elon Musk

    Elon Musk Unveils New Name, Logo For Twitter…

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
News On Spot
No Result
View All Result
Home Business

Doing business in Lagos is becoming difficulty, tech startups leaving…

newsonspotadmin by newsonspotadmin
August 20, 2020
in Business
Reading Time: 4 mins read
0

When East-African motorcycle-hailing startup SafeBoda announced its expansion to Nigeria last year, the initial plan was to launch in Lagos—the major economic hub. But that soon changed.

The startup’s proposed expansion came in the thick of regulatory tensions between Lagos’ state government and motorcycle-hailing startups that had grown ubiquitous on the premise of offering flexible, faster and on-demand transport in a congested city home to 21 million residents. Lagos’ proposals for expensive licenses as well as episodes of harassment faced by other startups at the hands of local transport unions ultimately proved defining for SafeBoda which instead chose to launch in Ibadan, a major city in Nigeria’s southwest that’s two and a half hours from Lagos.

It’s a snapshot of the simmering sentiments among industry stakeholders as they rethink the merits of setting up shop in Lagos amid the state government’s increasingly costly regulatory environment.

Indeed, after proposing pricey licensing fees for motorcycle-hailing startups, the government effectively banned them from operating in the state within a year, forcing some to sell off assets at a loss. The government’s long regulatory arm has recently extended to ride-hailing firms like Bolt and Uber who are set to face a new licensing and service tax regime. And, as the state deals with the economic effects of the coronavirus pandemic, there are indications that its tax drive will not be slowing down.

Beyond taxes, startup founders and ecosystem leaders are also weighing other costs that come with doing business in Lagos. The city’s notorious traffic jams make commuting a stressful daily routine, impacting productivity and quality of life. The associated higher costs of living in Africa’s largest city also drive up companies’ overheads and employees’ living expenses.

It’s why Sim Shagaya, former founder of Konga and stalwart of Nigeria’s Lagos-based tech ecosystem, chose to base uLesson, his new edtech startup, in Jos, a hill-top city in central Nigeria. “The question for me was if  it was possible to assemble people, pay them a “Lagos wage” but base them here, and the implications [it had] on employee retention and happiness,” he says.

More than a year later, Shagaya is convinced it was the right call and believes the startup and its employees are better for it, with the company able to offer additional perks like housing and shuttles to and from work as a result of running lower operating costs. “What we’ve done will show people that this can be done,” Shagaya reflects.

Leaving Lagos

As Quartz Africa previously reported, startup ecosystems started sprouting outside Lagos as much as five years ago just as tech hubs have emerged beyond legacy tech markets across the continent. But it’s a process that could be sped up in the wake of increasing difficulty of doing business in Nigeria’s economic capital.

Yet, looking beyond Lagos is a significant call for startups given the city’s standing as an economic powerhouse. Lagos has long been the epicenter of Nigeria’s $2 billion tech and startup sector and is home to Africa’s most valuable tech ecosystem. As startups also chase local scale and profits, Lagos offers the tangible prospect of Nigeria’s largest middle-class and consumer market—core targets for most startups.

As such, Bosun Tijani, founder of Co-Creation Hub, a prominent startup accelerator and incubator in Lagos, admits businesses that “interface” with the economy of the city will still require some operations in Lagos despite a move away. That’s the case for uLesson which has over 80% of its staff working at its Jos campus while maintaining a Lagos office for finance and fulfillment.

“It depends on your business model and how operationally intensive the Lagos component is,” Shagaya explains. uLesson’s model of building a content library and serving customers digitally and remotely meant a Lagos base for the company’s core engineering and content development staff was not essential. Another prominent example is TechMahindra, the Indian-owned business process outsourcing firm which expanded to Nigeria in 2011 and operates from a 171,000 sq. km center in Abeokuta, 48 miles outside Lagos.

As remote working options improve talent mobility and startup culture deepens across the country, tech veteran Victor Asemota argues more companies will look beyond Lagos. “The reason tech companies are located in Lagos was not because of market but infrastructure and talent,” Asemota tells Quartz.

As it turns out, some states are doubling down on building enabling infrastructure as they grow wiser to the opportunities that come with offering an alternative to Lagos. For instance, Ekiti, a southwest state that’s 200 miles from Lagos and known for high literacy rates, recently slashed broadband installation fees by 96% to boost local internet penetration and attract new businesses. For its part, the government in Edo, a state in Nigeria’s south, also funded and launched a tech hub two years ago to foster innovation and digital skills training.

Such proactive moves are a marker of intention, Tijani says. “Their growth as a business cluster will be based on something [tangible] rather than wishful thinking,” he tells Quartz Africa. And with benefits ranging from job creation and growing local tax bases to the impact of skill and knowledge transfer to locals, the upside of being a viable alternative to Lagos is clear.

Perhaps the most damning evidence of the shifting sentiment about doing business in Lagos is that long-time champions of the Lagos ecosystem, including Shagaya and Tijani are endorsing moves away from the state.

“The idea that Lagos is the be all, end all is no longer true,” says Iyin Aboyeji, an early co-founder of Lagos-based Andela and Flutterwave, who has chosen Calabar in Nigeria’s south as the base for his new investment firm, Future Africa. “Lagos has a lot of competition now.”

ShareTweetShare
Previous Post

Young Nigerian boy who went viral for dancing in the rain gets lucky again (video)…

Next Post

Ethiopian Airlines resumes flight to London Friday, defies FG…

newsonspotadmin

newsonspotadmin

Related Posts

Banks
Banking News

CBN Confirms 21 Nigerian Banks Have Met New Capital Requirements Ahead of March 2026 Deadline…

January 9, 2026
FirstBank
Banking News

FirstBank Hosts Nigeria Economic Outlook 2026 to Guide Businesses and Individuals…

January 4, 2026
FirstBank
Banking News

FirstBank Unveils First-Ever Premium Seating Experience at Carnival Calabar & Festival 2025…

December 27, 2025
Access Bank
Banking News

Access Bank Former Staff Jailed by The Court For Diverting Pensioners’ N10.3 Million In Enugu…

December 26, 2025
Helen Williams
Arts and Culture News

Nigerian Wig Maker Helen Williams Sets Third World Record With Towering 15.37m Wig…

December 18, 2025
Tax
Business

FG Sets January 2026 Deadline: Tax ID Now Mandatory for All Taxable Nigerians to Operate Bank Accounts…

December 12, 2025

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest
ST Team

ST Team Hosts Maiden Business Banquet, Unveils AI-Driven Investment Vision…

February 3, 2025
Uber

Uber Driver Drops Passengers Off At The Airport, Returns Back To Rob Their Home…

September 27, 2022
Lagos State Governor-Sanwo-Olu

Lagos Govt Declares 4-day Public Holiday…

January 19, 2023
Airline

Another Anambra Billionaire Set To Unveil New Airline…

May 17, 2024

Bill Gates steps down from Microsoft board to focus on philanthropy

0

Overlooked No More: Ni Gusti Ayu Raka Rasmi, Balinese Dancer

0

Nigeria vs Sierra Leone, other AFCON 2019 qualifiers cancelled

0

Osinbajo‘s convoy involved in accident, VP loses police outrider

0
Akunyili

History As Dora Akunyili’s Daughter Becomes First Black Chief Medical Officer of Jersey City Medical Centre…

January 10, 2026
Dangote

IPMAN Rejects Fuel Imports as Dangote Refinery Denies Supply Disruption Claims…

January 10, 2026
Super Eagles

FG Confirms Release of Super Eagles’ AFCON Group Stage Bonuses…

January 9, 2026
NCAA

NCAA to Impose Stiffer Sanctions on Airlines Over Chronic Flight Delays and Poor Passenger Handling…

January 9, 2026

Recent News

Akunyili

History As Dora Akunyili’s Daughter Becomes First Black Chief Medical Officer of Jersey City Medical Centre…

January 10, 2026
Dangote

IPMAN Rejects Fuel Imports as Dangote Refinery Denies Supply Disruption Claims…

January 10, 2026
Super Eagles

FG Confirms Release of Super Eagles’ AFCON Group Stage Bonuses…

January 9, 2026
NCAA

NCAA to Impose Stiffer Sanctions on Airlines Over Chronic Flight Delays and Poor Passenger Handling…

January 9, 2026
News On Spot Logo

Browse by Category

Archives

  • Home
  • About Us
  • Contact

© 2022 | Crafted with ❤ by Claridan - Adsvance Digitals.

No Result
View All Result
  • Home
  • About Us
  • Contact
  • Entertainment
  • Politics
  • Business
  • Health
  • Sports
  • World
  • https://newsonspot.com.ng/2024/05/21/fluconazole-prix-en-belgique/
  • https://newsonspot.com.ng/2024/09/30/access-bank-strengthens-women-empowerment-effort-in-southern-africa/
  • https://newsonspot.com.ng/2024/04/04/segun-odegbami-loses-son-after-a-brief-illness/