Nigeria’s innovation hubs are struggling to stay afloat amid rising electricity costs, unstable Internet services and weak infrastructure, a new report by the Innovation Support Network (ISN) has revealed.

The findings were presented yesterday in Abuja during the launch of the Nigerian Innovation Hub Assessment Report and the unveiling of ISN’s Strategic Direction and Outlook for 2026 to 2030.

The report, supported by GIZ Digital Transformation Centre Nigeria, the European Union and the German Federal Ministry for Economic Cooperation and Development, surveyed more than 190 innovation hubs across the country out of over 250 active and semi-active centres.

Presenting highlights of the report at the NASENI Innovation Hub, ISN Board Chairman, Hanson Johnson, said more than 70 per cent of digital innovation hubs operate on yearly revenues below $50,000 despite their growing importance in job creation, skills development and startup support.

He said the situation is worsened by Nigeria’s persistent power challenges, including frequent national grid collapses and high reliance on diesel generators, which significantly increase operational costs for tech centres.

Nigeria has continued to face repeated electricity supply disruptions, with the national grid recording multiple collapses in recent years, forcing businesses and tech hubs to rely heavily on alternative power sources.

At the same time, internet quality remains inconsistent across many parts of the country, with high data costs and unstable broadband coverage limiting digital operations and innovation growth.

Johnson noted that over 60 per cent of hubs surveyed identified power instability as a major constraint, while unreliable internet connectivity and difficulty retaining skilled technical talent were also key challenges.

According to him, most hubs operate with fewer than 10 full-time staff, making them highly vulnerable to rising costs and infrastructure gaps.

Despite these challenges, the report showed that innovation activity continues to expand beyond Lagos and Abuja into states such as Kano, Kaduna, Enugu, Rivers and Abia, where grassroots digital initiatives are growing steadily.

The study identified Information and Communication Technology (ICT) and software development, as well as AgriTech, FinTech, and EdTech, as the dominant sectors driving innovation across the country.

Johnson said many hubs have evolved beyond startup incubation centres into community support spaces that offer mentorship, training, and access to digital skills for young people, women, and entrepreneurs.

He called for stronger policy intervention and infrastructure investment to prevent further strain on the sector.