Introduction

Educational technology (EdTech) refers to the utilization of technology in education. It involves incorporating learning management systems (LMS), educational applications (apps) software, games, podcasts, online discussions, and video conferencing software like Slack, Zoom meetings, Google Meet, Microsoft Teams, and Webex, among others. These programmes and their educational content are essential to skill development and professional growth among students,  employers, and employees.

The value of the EdTech industry increased to $106.46 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 9.1% by 2026 and reach an estimated value of $457.8 billion. This growth is projected to manifest as innovations in information, communication, and technology (ICT) and innovative breakthroughs in e-learning tools culminating in rapid modifications and innovations of advanced versions of phones, smart devices, and internet services.

One significant use of EdTech common among educators and people needing personal or professional development is the e-learning platform. According to Oxford Learning College, since 2000, e-learning has grown at a 900% growth rate to become the most rapidly growing market in the education sector. E-learning has become a common feature in the education system and has contributed to the intellectual development of individuals across the globe. Common global e-learning platforms include Coursera Inc., Udemy, Duolingo, and Course Hero, among others.

Online learning platforms are gradually making waves, especially since the COVID-19 pandemic forced learning institutions, students, and career professionals to discover or re-discover the effectiveness of digital learning as a platform for knowledge transfer. Consequently, about 49% of students have engaged successfully in digital learning, which is expected to increase to 57 million by 2027.

E-learning is relevant to students and people in careers and a significant source of income for businesses. According to the Research and Markets forecast, the e-learning market is estimated to reach $350 billion by 2025 and $370 billion by 2026. Another survey shows that the global e-learning market will increase to $325 billion in 2025 and 457.8 billion by 2026. Talent developers rely on digital learning to solve the ever-increasing heterogeneous workforce and diverse learning needs. According to a LinkedIn report, where approximately 4,000 registered professionals were surveyed, 58% of employees prefer these platforms' self-paced online learning structure.

In addition, digital learning tends to increase the profit margin of participating companies by 24%, increase student and employee retention by over 50%, increase company revenue by 218%,  improve employee performance by 15% to 25%, and decrease the time allocated to learning a subject by 40% to 60%.

Situating Nigeria within the Global EdTech Industry

The United States is the largest e-learning market globally, with about 63% of students using e-learning activities daily. It was estimated that within five years (2017–2022), the market will grow by over $6 billion. By 2022, the US e-learning market was worth $100 billion, while it was estimated that by the end of 2023, it would be valued at $686.9 billion.

Apart from the US, China, Thailand, India, and the Philippines (located in Asia) record over a 30% growth rate annually and are among the fastest-growing e-learning markets globally after the US. The Asia Pacific Accreditation Cooperation (APAC) notes that China and India are among the major countries witnessing exceptional e-learning growth rates. China alone has the second largest market after the US, with an estimated revenue of over $171 billion by 2030.

In 2022, the e-learning sector was valued at $240 billion, while Nigeria’s e-learning market was estimated to be at $ 4.32 million, with $2.94 million revenue from In-App Purchase (IAP), $0.71 million revenue from Paid App, and $12.61 million from downloads.

E-learning is a budding industry in Nigeria and is projected to reach $107.90 million by the end of 2024, making it a good area for private investors to explore. The market revenue is anticipated to have a CAGR of 11.04% between 2022 and 2027, with an estimated value of $7.05 million by 2027, or a CAGR of 15.56% between 2024 and 2028, with a projected value of $ 192.40 million by 2028.

The most popular e-learning platforms in Nigeria include Gopius, Coursera, uLesson, edX, 9IJA KIDS, Sololearn, classNotes, Lingokids, LinkedIn Learning, Unicaf, Alison, Elevate, and the National Open University (NOUN), among others. The most prominent among these online platforms is the uLesson platform, with over 2 million live lesson attendances, 5 million downloads, and 14 million lessons watched in its four years of existence. The MIVA Open University, a part of uLesson, received an Open Distance eLearning License from the National Universities Commission (NUC) to operate online classes. In September 2023, MIVA Open University officially kicked-off its bachelor’s degree programme through its Online Distance e-Learning (ODeL). Consequently, learners can obtain a degree in Accounting, Business Management, Computer Science, Cyber Security, Data Science, Economics, Public Policy and Administration, or Software Engineering.

Exploring the Potentials for Government and Investors

Private Sector Investment

In 2022, Edtech startups received about $24.6 million, or 0.7% of investment funding in Africa. Despite the slow funding rate, private investors continue to explore the promises of the sector. For example, Co-Creation Hub (CcHUB), an innovation hub, launched the Edtech Fellowship Program in 2023, a $15 million accelerator program intended to support some startups across Nigeria and Kenya for three years. This shows that despite the challenges of electricity, which serves as a limiting factor to the development of EdTech in Nigeria, private sector investments in EdTech will rise significantly in the coming years. This reveals a flourishing market for investors to venture into.

Public Sector Investment

The Federal Republic of Nigeria has shown interest in digitalising the economy through Nigeria’s National Digital Economy Policy. This includes digitalising education and, at the same time, supporting easy and cheaper access to online learning platforms. The government's plan to promote digital literacy culminated in an agenda to establish virtual libraries across several learning institutes. Likewise, the government has embarked on a continuous agenda to establish e-learning facilities. This will promote a digital learning culture in schools. Despite this move, there is still a need to rehabilitate and introduce (where appropriate) facilities that will enable a smooth transition to a sustainable digital learning culture across the country.

Given the growth in EdTech users and the revenue available to investors (private, public, and institutional), Nigeria stands to tap into this stream.  However, e-learning in Nigeria faces the challenges of low access to digital infrastructure, and it is difficult for average families to procure the e-learning gadgets necessary for each child in such homes to participate fully in e-learning classes. Likewise, few people have access to the internet. In 2023, only about 14.3% of Nigeria's total population had internet access, with 87.7% having a cellular mobile connection. In addition, the constant power challenge in Nigeria poses a challenge to a seamless, positive development in Nigeria’s Edtech industry. According to the International Centre for Investigative Reporting (ICIR), Nigeria’s national grid could only handle 4,886.40 megawatts (MW). Nigeria has witnessed several blackouts as a result of grid collapse. The most recent was Sunday, February 4th, 2024, when the grid collapsed from  3,852 megawatts (MW) to 59 MW. With the significant unsteady power supply challenge across the country, many prospective students will be cut off from having steady access to e-learning platforms.

Despite these identified challenges, this field has the potential to continue growing, as it includes access to school courses and subjects and also access to skills development beyond the walls of educational institutions. Essay access to online tertiary education can provide a channel for professionals in Nigeria to unscale their academic qualifications and obtain new degrees. With the global market, private and public investors can leverage EdTech to generate revenue and provide an alternative platform for learners in Nigeria and beyond. Thus, irrespective of the location of prospective learners, once there is access to electricity and the internet, knowledge transfer and Nigeria’s education sector will be sustained.

References

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