Japa crisis worsening startups’ talent drain – Analysts

Experts have warned that Nigeria’s tech startup ecosystem is facing a severe talent drain as the mass emigration of skilled workers, popularly known as “Japa Syndrome”, continues to erode the country’s innovation potential.

According to them, this exit, fuelled by economic uncertainty and the lack of opportunities, is leaving a massive void in the workforce, putting startups at risk especially those that are heavily reliant on skilled workers for growth and innovation.

Data from the National Population Commission showed that the number of tech professionals emigrating has tripled over the past year alone, with startups being hit the hardest.

Reports indicate that more than 20,000 Nigerians, many of them tech professionals, have left the country in the past two years for better career prospects in global tech hubs such as the United States, Canada, and the United Kingdom.

The Nigerian Bureau of Statistics also indicated that over 10,000 tech experts have left Nigeria within the same period, creating a major gap in the labour market.

Speaking with The PUNCH, the Chief Executive Officer of LRA Consulting Limited, Mr Ayoola Lawal, said, “Beyond startups, the ongoing talent migration crisis has wider economic implications.

“Recently, especially in the finance and technology industry, we have seen people leaving in large numbers. So, people will continue to leave, and those gaps will continue to exist unless the government can do something quickly about it,” Lawal said.

He warned that continued brain drain could stifle innovation and economic diversification efforts.

“Nigeria’s tech industry plays a crucial role in the country’s future, and if we keep losing talent, we risk stalling our progress,” Lawal said.

While some companies are investing in upskilling and mentorship programs to develop new talent, Lawal argued that these initiatives need to be scaled up significantly.

“Unless Nigeria addresses the root causes of Japa Syndrome which includes economic instability, inadequate infrastructure, and weak government support, the exodus of skilled workers is unlikely to slow down, threatening the future of the country’s tech ecosystem,” he added.

Also, a survey, the Talent Management Report, titled, “A New World Order: Shifting Paradigms in Addressing the Brain Drain,” carried out by Phillips Consulting, indicated that over half (52 per cent) of Nigerian professionals are considering leaving their current jobs and moving abroad within a year.

The research findings showed that 90 per cent of Nigerians who have faced an increased cost of living are cutting their spending on essential and non-essential items. This has resulted in financial stress, decreased purchasing power, lower job satisfaction, and higher job mobility and migration rates.

However, startups in fintech, software development, and e-commerce have been particularly affected, with companies struggling to fill vacancies.

“The tech scene is in turmoil because talent is walking away. It is not just about the numbers; the real challenge is the loss of intellectual capital that could have driven local innovation,” said a digital economy expert, Ifeanyi Adio.

However, Adio stated that to counter the crisis, Nigerian startups were implementing various strategies to retain talent and sustain growth.

“Many are increasing investments in remote work infrastructure, allowing them to tap into global talent pools. Others are offering competitive salaries, better working conditions, and stock options to encourage employees to stay,” he added.

“Remote work has helped us retain some of our workforce but there is still a challenge in keeping the local ecosystem vibrant,” said Adaeze Okafor, CEO of a Lagos-based fintech startup.

“We had to adapt quickly, while remote hiring helps, it’s not a sustainable long-term solution for Nigeria’s tech industry,” said Bolanle Akinyemi, CTO of a Lagos-based fintech startup.

Some startups are adopting hybrid work models, enabling them to attract foreign talent while maintaining a local presence. Companies like Konga and Jumia are expanding their hiring efforts beyond Nigeria, recruiting talent from across Africa, Europe, and North America.

A venture capitalist, Ikenna Chukwu, said, “Despite  efforts being made by tech startups to retain talents, overreliance on remote workers may disconnect startups from the Nigerian market. Local expertise is vital for navigating Nigeria’s unique economic landscape.

“Remote hires may be skilled, but they often lack deep market insights needed for business success here,” Chukwu added.