Expert Advises Nigerian Startups to Focus on Foundational Structures

A business expert has called on Nigerian startups to prioritise the development of strong internal structures as a pathway to long-term sustainability, growth, and global competitiveness. The advice comes amid increased enthusiasm around entrepreneurship in the country, with many young founders focusing on scaling quickly without establishing sound operational frameworks.

Speaking during a recent entrepreneurship forum in Lagos, the expert, who is a renowned business strategist and venture development consultant, emphasised that while passion, innovation, and funding are essential to startup success, none of these elements can substitute for robust organisational systems. According to him, startups that fail to build solid foundations often struggle with coordination, accountability, and continuity when they begin to scale.

He explained that startups in Nigeria face unique challenges, including regulatory uncertainty, limited infrastructure, and access to talent. These hurdles, he said, make it even more critical for new ventures to adopt well-defined business models, financial controls, and clear governance frameworks from the outset. Without these, even the most innovative ideas risk failure in the face of operational complexities.

Drawing examples from both failed and successful startups, the expert noted that many ventures collapse because they focus heavily on customer acquisition, marketing, and fundraising without setting up basic corporate structures like effective leadership, defined roles, internal policies, and a compliance culture. “It’s like trying to build a skyscraper on sand,” he said. “No matter how flashy the exterior looks, it won’t stand for long if the foundation is weak.”

He further advised that investors are increasingly looking beyond pitch decks and user growth when assessing potential investments. More investors now prioritise due diligence on corporate governance, accounting systems, legal compliance, and team cohesion. A startup with clear documentation, transparent operations, and strong leadership is far more likely to win investor confidence, he added.

The consultant also addressed the temptation among young founders to emulate Western startup culture without considering local context. He warned against blindly adopting “move fast and break things” approaches without adapting to the Nigerian business environment. “Many Silicon Valley practices are built on access to advanced legal systems, credit infrastructure, and deep capital markets that we don’t yet have here,” he said. “Founders need to innovate, yes, but they must do so with structure.”

He encouraged startups to take advantage of local accelerators, mentorship programmes, and enterprise development hubs that focus on capacity building. These platforms, he said, can help founders learn how to manage teams, track performance, maintain financial discipline, and remain compliant with relevant laws. The goal should not just be to launch, but to last.

His advice comes at a time when Nigeria’s startup ecosystem has witnessed tremendous growth in activity, with record-high numbers of venture capital deals and tech-driven solutions across sectors like fintech, agritech, healthtech, and logistics. However, several once-promising startups have folded after initial hype due to poor management decisions, legal disputes, or inability to meet scale-up demands.

Startups were also urged to avoid over-reliance on short-term funding rounds and focus on building business models that can generate sustainable revenue. Many new ventures burn through capital rapidly while trying to “blitzscale,” only to find themselves cash-strapped when economic conditions shift or investor sentiment changes. The expert advised founders to align product-market fit with cash flow realities and scale cautiously.

In addition to financial and operational structures, he highlighted the need for startups to invest in people. Creating an environment where employees are empowered, fairly compensated, and developed professionally is essential to long-term success. He said many startups fail because they do not build a culture of trust, communication, and accountability within their teams.

The expert concluded his remarks by calling for a shift in mindset among Nigeria’s startup founders and ecosystem enablers. According to him, the future of African innovation will not only be driven by bright ideas but by the strength of the institutions that support them internally. “We cannot afford to treat structure as an afterthought,” he said. “It must be built into the DNA of our ventures from day one.”

 

As the country seeks to position itself as Africa’s leading innovation hub, the call for structure becomes even more urgent. Stakeholders have pointed out that with the right foundations, Nigerian startups can become global players, create thousands of jobs, and attract even greater investment flows. But without structure, the risk of collapse—no matter how promising the concept—remains dangerously high.