Banks, telcos are bridging tech capacity gap through innovation hubs

By Alexander Chiejina.

As Nigeria experiences  a significant migration of skilled professionals to European countries in search of better opportunities, the country is grappling with a shortage of skilled workers. The brain drain phenomenon has had a significant impact on Nigeria’s development, impacting the growth of various sectors, including the financial services industry, which relies on highly skilled individuals to drive innovation and development.

To combat this issue, Nigerian banks have taken the initiative to set up innovation hubs and support existing ones to foster the growth of skills and innovation within the country. Several Nigerian banks have allocated resources to establish innovation hubs. These hubs serve as incubators for technological innovation and skill development, providing a nurturing environment for young entrepreneurs, startups, and developers.

Leading financial institution, Union Bank recently launched a technological and innovation hub known as SpaceNXT. Built to promote innovation and encourage collaboration within the tech ecosystem in Nigeria, SpaceNXT is a future-forward purpose designed co-working hub for innovators, creators and techpreneurs. SpaceNXT was set up to provide an enabling environment where tech enthusiasts, visionaries and creators can converge for the propagation of new ideas. It is a launching pad for innovators to collaborate, develop and improve on ideas around digital systems and technology.

“Globally, technology and innovation are key drivers of growth, and here in Nigeria, the tech community is at the forefront of our ongoing digital revolution. To unlock the massive potential of the sector, we must create an enabling environment that promotes collaboration and fosters strong partnerships within the ecosystem, this is why we launched SpaceNXT – to serve and enable the growth of the tech community,” Lola Cardoso, executive director and head, retail banking and digital,” Union Bank explained recently.

In May 2023, Udacity collaborated with Access Bank Plc to empower Africans who are interested in learning tech-forward skills to kick-start careers. The programme which is ongoing is providing hands-on learning opportunities in fields such as Programming, Data Science, Product Management, and lots more. As the world becomes increasingly reliant on digital tools, the need for tech-fluent talent grows as well as making this your chance to begin a long-term career.

To further facilitate skills development, banks have also entered partnerships with universities and other educational institutions. These partnerships aim to bridge the gap between academic knowledge and practical skills, ensuring that students are equipped with the necessary expertise demanded by the industry.

Financial institutions are not the only entities contributing to the establishment of innovation hubs. Telecommunications companies, such as MTN, have joined the cause to foster innovation and address the skill shortage issue. MTN Nigeria, through its subsidiary MTN Foundation, launched the ICT and Business Skills Training Programme to empower young Nigerians with in-demand skills.

This programme aims to develop the skills of young Nigerians in in-demand areas such as information and communication technology (ICT) and entrepreneurship. By equipping individuals with these skills, MTN Nigeria aims to create a pool of tech-savvy professionals who can contribute to the growth of Nigeria’s digital economy.

These innovation hubs not only provide resources and training opportunities but also contribute to the overall development of the Nigerian economy. They foster entrepreneurship, attract foreign investments, and create job opportunities for skilled professionals within the country. Moreover, by nurturing talents locally, these hubs can reduce the brain drain phenomenon by incentivizing professionals to stay and contribute to the growth of the nation.

Nigerian banks, along with telecommunication companies, have recognized the importance of establishing innovation hubs to foster innovation and address the skill shortage in Nigeria. These hubs provide a nurturing environment for young entrepreneurs and developers to develop their skills, collaborate, and transform their ideas into viable solutions. With the continuous support and commitment from these institutions, Nigeria can foster a culture of innovation, attract investments, and build a sustainable ecosystem that drives economic growth and development.