Comment on the “success process” article: “Why do many well-paying jobs in Nigeria demand a first-class or, at minimum, a second-class lower degree? What about valuing skill sets and practical experience instead?”

My Response: First, a fresh graduate does not have a lot of practical experience for any serious employer to focus on. The experience for most recent  graduates is the university coursework, and that is validated by the associated grade. In other words, the real “practical experience” is that degree. It may not be perfect to focus on it, but that is a starting point. Companies have the right to select candidates  based on those grades since ideally there is  a “practical experience” in registering a course, taking lectures and writing an exam. When people say good grades do not matter, I like to ask them how bad grades do better? Yes, a company should bias towards students with good grades.

Also, on the skill component. The fact is this: exams test skills and through exams, you can evaluate skill sets. Those days in banking, they used to give 90 quantitative questions for you to answer in 20 minutes. If you are in your house, and decide to solve the questions over 4 hours,  you will get all of them correctly. Simply, the questions are very easy. However, the bank is not interested in ascertaining if you can solve the algebra within 5 minutes, it is testing if you can solve it in 14 seconds correctly. That is how the bank is testing many skills via an “exam”.

Why? The bank is testing you to know how you can perform under stress. Bankers work under severe stress and must still be accurate all the time. So, that “exam” gives them a window of how that candidate can perform with numbers under stress, modeling if under stress he will credit $10,000 instead of $1,000. Or a colleague has an emergency, and you are required to enter his teller box to reconcile the books at the shortest time possible. In that complexity, can you get that done? The bank models that by throwing different patterns of questions in the employment test.

Largely, degree classification is the culmination of these attributes because there are many smart people who cannot pass stress exams well. That does not mean they are not smart, it simply means they do not have the capacities to handle stress. Back to the bank test, those grading the exams will stop whenever you have two answers WRONG sequentially. They do think by then you have broken down since ideally you ought not to get those questions wrong.

So, you can get 1 to 10 correctly, fail 11 to 13, and get 14 to 20, your score will be 10/20. Another person who gets 1 to 13 correctly has a better score than you at 13/20. The question now is hoping there are not many people getting 1-18 correctly which means you cannot just relax.

While banks focus on testing accuracy under extreme stress, some companies test endurance.  So, exams do help to reveal skill sets! Most students who finish with poor grades quit before the grading. How? There are 10 modules for the course and without good planning, you studied only 6. Ideally, that exam has tested your project management skill with the understanding that managing our time is the grand project management assignment.

Comment on Feed

Comment 1: While I understand the points raised about grades reflecting certain skills and work ethic, I believe it’s crucial to avoid a blanket exclusion of candidates based solely on their academic performance. Many individuals with lower GPAs possess valuable skills and talents that may not be fully captured by traditional grading systems.
For instance, someone with a lower GPA might have dedicated significant time to internships, volunteer work, or personal projects where they gained practical skills and experiences directly relevant to the job. These experiences often demonstrate initiative, teamwork, and a commitment to continuous learning – qualities that are highly valuable in any employee.

My Response: Grades are results of 4 or 5 years. It would be a mistake to replace them with a jamboree of 2 or 3 hours of “holistic” evaluations. Most universities will not interview you for academic jobs if you have below 2.1. That does not mean you cannot work in the registrar office or the works dept. The point is clear: you are statistically better using a result generated over 5 years than one done in 2 hours. No 2 hours can replace those 5 years.  The irony is this: an oil company will not hire you because of your grade,  but in 10 years your company can become a contractor to that oil company. A consulting company may not hire you due to low grades, but in future, you can hire the same company to help your business expand. People work on statistics and that does not mean there are no misses.

Comment 2: I’ve personally witnessed cases where individuals with “average” grades have outperformed those with stellar academic records. This is because success in the real world often requires a diverse set of skills, including creativity, adaptability, and emotional intelligence, which aren’t always accurately reflected in university grades.
Instead of using GPA as a rigid cut-off, a more holistic approach that considers a candidate’s complete profile – including their experiences, skills, and drive – would ultimately lead to a more talented and diverse workforce. Offering interviews to a wider range of candidates, including those with lower GPAs but strong practical experience, could uncover hidden gems that would otherwise be overlooked

My Response: Grades are results of 4 or 5 years. It would be a mistake to replace them with a jamboree of 2 or 3 hours of “holistic” evaluations. Most universities will not interview you for academic jobs if you have below 2.1. That does not mean you cannot work in the registrar office or the works dept. The point is clear: you are statistically better using a result generated over 5 years than one done in 2 hours. No 2 hours can replace those 5 years.

The irony is this: an oil company will not hire you because of your grade,  but in 10 years your company can become a contractor to that oil company. A consulting company may not hire you due to low grades, but in future, you can hire the same company to help your business expand. People work on statistics and that does not mean there are no misses.

Comment 3: Why then do people like Elon Musk keep banging on about not caring about people’s degree talkless of having a first thus sometimes making it seem like these things are irrelevant in the real world of work…or could he be referring to other attributes like social, interpersonal, behavioural and maybe some entrepreneural qualities…surely people who work on those Tesla cars and spaceX rockets must be academically brilliant too…

My Response: Google or Microsoft may not list degree requirements. But check those who do get those jobs, 99.99% have degrees. Elon may tell you that degrees do not matter. But he got two undergraduate degrees: Bachelor of Arts in physics and Bachelor of Science in economics. He is among the few in the world with two bachelors. So, be guided. Those are sound bites.

Join us tomorrow and let us have a conversation on customer validation and how to build what customers really want. In the grand scheme of business growth, any company which begins scaling without first attaining a product-market fit will waste money. Simply, you must have a validation before that growth pedal is pushed at scale.

I will take you to Oriendu Market Ovim to understand that ancestral Igbo proverb of “ahia oma na-ere onwe ya” which means that a great product will sell itself. It is not saying that you do not need to advertise. Rather, the proverb is saying that if the product is great, customers will come, and they will repeat, and they will recruit other customers, because great products create fandom.

Hahaha – that fandom is the validation as you must overcome the inertia customers face, to support your mission, by getting them to pay. Remember: customers are the greatest investors in any market system, and validating a product use-case will remain central in any entrepreneurial playbook. In my lecture, I will explain  the mechanics of that validation, and how we can use the perception demand framework to win in markets.

Join us and pick a seat here for our next edition.

The Nigerian startup ecosystem, once celebrated as a beacon of innovation in Africa, is now confronting significant challenges, with only a small fraction of companies achieving notable financial success.

A report titled “A Decade of the Nigerian Venture Ecosystem 2024—Numbers, Insights & Stories,” by TLP Advisory, paints a stark picture of a sector grappling with limited funding, high operational costs, and systemic barriers that threaten its growth and sustainability.

The report reveals that only 15% of Nigerian startups earn over N250 million ($149,000) annually, while nearly half (49%) report revenues below N10 million. Moreover, 51% of startups are not yet profitable, a situation attributed to the high cost of doing business.

Femi Longe, co-founder and non-executive director at CcHUB, contextualized the financial strain by saying, “People who raised money in U.S. dollars, who are earning in naira, and who have to report to investors who invested in U.S. dollars need to be doing almost three times more work and earning three times more income because the currency has devalued by more than 70 percent.”

The report highlights that 54% of startups have not raised any capital, with the majority citing limited access to investors and inadequate funding information as significant hurdles. High interest rates and economic instability further compound the problem, deterring potential investors.

According to the report, the most common funding sources, which account for 43 percent of all funds raised, were angel investors, including friends and family.

“Forty-three percent of startups raised funds from angel investors as well as friends and family, with 24 percent raising venture capital funding while 18 percent and 15 percent secured funding through debt financing (including convertible notes) and grants, respectively,” the report said.

Systemic Barriers and Policy Challenges

Beyond financial constraints, startups face other systemic issues. The report identifies poor infrastructure, unreliable power supply, and restrictive government policies as recurring obstacles. About 15% of respondents flagged unfavorable policies as a significant barrier to growth.

“Limited or no access to finance is the primary barrier to business growth, with 22 percent of the founders stating it to be their chief problem, coming ahead of “inadequate marketing,” with 18 percent confirming it as their main barrier and 15 percent stating their chief problem was “business/revenue model” and “government policies” respectively,” it said.

Longe also pointed to the broader economic challenges: “Even with a strong business model, navigating Nigeria’s economic headwinds is incredibly challenging,” he said.

A Shift in Africa’s Startup Powerhouse Status

This development has been pointed out as the major reason for the recent decline in investment in Nigerian startups.

Nigeria, which once led Africa in attracting startup investments, lost its top position to Kenya in 2023. Kenyan startups raised $800 million that year, almost double Nigeria’s $410 million. In 2024, Kenya maintained its lead, securing 32% of Africa’s startup funding in the first half, compared to Nigeria’s 22%. Egypt took a share of $101 million, and South Africa secured $85 million.

This shift highlights the country’s waning influence as a startup powerhouse and the growing appeal of other African ecosystems.

Despite these challenges, the report reveals that 80% of startup founders emphasize cultivating strong company cultures, with collaboration, innovation, and open communication identified as key to sustaining their businesses.

The report also noted the urgent need for systemic reforms to revive Nigeria’s startup ecosystem. Addressing access to finance, streamlining regulatory processes, and improving infrastructure are critical to ensuring long-term growth and sustainability.