Nigeria's digital economy faces mounting pressure from unreliable electricity, expensive internet access and limited financing, according to women in technology who warn that the rising cost of running tech businesses could undermine the country's progress despite ongoing efforts to expand connectivity and support innovation.

The concerns were raised at the AFF Women in Tech conference 6.0, where entrepreneurs, investors and technology professionals examined the challenges of building businesses that can survive Nigeria's difficult operating environment.

Electricity emerges as a central concern

Electricity featured among the biggest issues, with experts arguing that expanding internet infrastructure would achieve little if businesses could not afford the power needed to operate it.

Jane Egerton-Idehen, managing director and CEO of NIGCOMSAT, said telecommunications operators already spend heavily on infrastructure, with electricity shortages adding to operating costs and affecting service delivery.

"Once there is no power, everything is just there," she said, stressing that electricity remains essential to the functioning of telecommunications infrastructure. She added that connectivity disruptions could carry consequences beyond business operations, particularly as Nigerians now depend on internet services for payments, healthcare and other everyday activities.

The panellists also raised concerns about the cost of fixed broadband connections, which often require uninterrupted electricity and additional backup systems. For smaller businesses, maintaining these services alongside other operating expenses can make reliable internet access difficult to afford. Businesses across Nigeria already absorb the cost of generators and other backup power to bridge gaps in grid supply, expenses that compound connectivity charges and fall hardest on the smallest firms.

Egerton-Idehen suggested that internet service providers could introduce affordable packages specifically designed for small businesses, allowing more entrepreneurs to access dependable connectivity without bearing the full cost of dedicated infrastructure.

Renewable energy could ease Nigeria's connectivity challenges

Ifeoma Malo, co-founder and CEO of Clean Technology Hub, called for stronger collaboration between renewable energy companies and telecommunications providers to address the electricity challenge. She explained that solar installations, mini-grids and microgrids are already helping businesses reduce their dependence on unreliable power supplies, particularly in underserved communities.

According to Malo, declining solar equipment costs and flexible payment arrangements are making renewable energy systems more accessible to entrepreneurs who cannot afford the full installation cost upfront. She cited pay-as-you-go systems and other financing arrangements that allow businesses to spread payments while using renewable energy equipment.

However, she expressed concern that the two industries are not collaborating enough.

"Power is very important. But building an inter-connected ecosystem is what is going to help everybody scale faster," she said.

Egerton-Idehen also called for greater regulatory certainty, arguing that inconsistent policies make it difficult for investors and businesses to plan long-term infrastructure projects.

"Innovators can adapt to rules. But they cannot adapt to uncertainty," she said. She pointed to delays in securing right-of-way approvals for fibre-optic cables and damage to telecommunications infrastructure during construction as challenges requiring government attention.

For now, the ideas on the table — small-business broadband packages, deeper telco–renewable partnerships and faster right-of-way approvals — remain proposals rather than policy, and any movement on them would be a concrete signal of whether the operating environment is easing for smaller firms.

Startups face tougher funding environment

Beyond infrastructure, the conference examined the growing pressure on African startups to become financially sustainable.

Chioma Chukuemeka-Joseph, an investment professional at Microtraction, said founders can no longer approach fundraising and expansion the way they did when investment capital was cheaper.

"This is the period where the ZIRP, the zero interest rate period, has passed, and now investors want to see actuals," she said. She urged founders to prioritise cash runway and revenue before considering expansion into new markets.

The reset she described reflects a broader tightening across African venture funding, as the end of the global near-zero interest rate era shifted investor attention from rapid growth toward revenue and sustainability.

"Before you say you want to expand to, you know, 10 countries, states, or outside Africa, you need to ask yourself, what can get me from January to December without collapsing?" she said.

Her comments were reinforced by Dr Nneka Okekere, who warned that business activity does not necessarily translate into profitability.

"Activity is not profitability," she said, explaining that founders can record strong sales and still struggle to survive if their expenses exceed their earnings. She encouraged entrepreneurs to pay closer attention to their markets, operational structures, financial discipline and leadership.

Women remain underrepresented in Nigeria's tech sector

Women's participation in technology featured prominently in the discussions.

Oreoluwa Somolu, Executive Director of the Women's Technology Empowerment Centre, said women account for approximately 22% of students studying STEM courses in Nigerian universities, compared with a global figure of 35%. She estimated that women represent about 20% of Nigeria's technology workforce, citing stereotypes, workplace discrimination and limited career support among the factors discouraging greater participation. The gap leaves the sector drawing on a smaller share of the country's talent pool than the global average, a shortfall the panel framed as an economic issue as much as one of fairness.

According to Somolu, many women leave technical roles within their first decade of employment, with some moving into other fields after struggling with workplace challenges. During her keynote speech, she challenged stakeholders to look beyond the number of women entering technology and consider their influence on decisions affecting the industry.

"Representation is not always the same as influence," she said.

She maintained that Africa's challenge is not a shortage of innovative ideas but creating an environment where those ideas can become viable businesses, strong institutions and lasting sources of economic value.