For decades, building hardware in Nigeria has been a cautionary tale. Even the most promising ideas often didn’t survive past ideation, from the cost of components to a lack of specialised talent and infrastructure. Just ask the team behind Humane — no, not the AI Pin startup that raised $230 million in Silicon Valley, but the Nigerian student-led team from the University of Ibadan. In 2017, they developed a device to help visually impaired people use smartphones. It won Microsoft’s Imagine Cup regional and national rounds. But despite its promise, it never got off the ground. No funding. No prototype. Just a dream swallowed by the harsh realities of Nigeria’s tech landscape.
So, what changed?
Today, startups like NEV Electric and Terrahaptix are flipping the script. NEV Electric raked in $14 million in revenue within 14 months and projects a whopping $50 million within the next 15. Terrahaptix, meanwhile, locked in $2 million in drone orders in 2024 alone — primarily from Nigeria’s oil and mining sectors — and is now exporting to South Africa. These hardware companies are quietly making waves in a country obsessed with fintech.
Are These Just Lucky Breaks—or Signs of a Shift?
Skeptics might argue these are outliers. After all, it’s hard to even name 20 active hardware startups in Nigeria. The industry still grapples with major hurdles: limited access to manufacturing facilities, scarce hardware-focused VCs, and a technical talent pool that skews heavily towards software.
But dig deeper, and you’ll notice something interesting: both NEV Electric and Terrahaptix didn’t just throw hardware into the market. They adapted, innovated, and in some ways, redefined what it means to be a hardware company in Nigeria.
NEV Electric leveraged Nigeria’s growing appetite for electric vehicles. There are now around 5,000 EVs on the road in Nigeria, and NEV claims to be the largest electric bus manufacturer in Africa, having deployed over 100 buses. According to CEO Mosope Olaosebikan, the company isn’t just riding the EV wave — it’s actively building it, backed by its parent company, Boly Media, which bet early on Africa’s potential.
Terrahaptix, on the other hand, won investors over not just with its drones, but with its software-driven model. As Tofino Capital’s Eliot Pence put it, “The most sophisticated thing Terrahaptix does is on the backend — the software that coordinates the physical assets.” Hardware was just one piece of the puzzle. By including tools like ArtemisOS, its surveillance system now used at the Aba Independent Power Plant, Terrahaptix secures recurring revenue via SaaS — a rare but strategic approach in African hardware.
What Can Other Startups Learn?
If Nigerian hardware is to become more than just an occasional success story, startups must study what these two companies are doing right. Here’s what stands out:
- Global-Local Hybridity Works
NEV Electric’s success is partially due to Boly Media’s international backing and willingness to take a calculated bet on Africa. Terrahaptix, though locally grown, received international funding by aligning with global manufacturing trends and automation efficiencies. Having global perspectives with local execution is no longer a luxury — it’s a requirement. - Marry Hardware with Software
Hardware, in isolation, often doesn’t scale. Terrahaptix cracked this by layering intelligent software onto physical products, offering a full-stack solution that’s harder to replicate and easier to monetise. As CEO Nathan Nwanchukwu said in a report by Techpoint Africa, “Investors want to see recurring revenue.” That’s what makes a hardware business look like a SaaS company — and that’s what VCs want. - Leverage Open-Source and Cost-Reducing Tech
Platforms like Arduino and Raspberry Pi have made prototyping dramatically cheaper and more accessible. Terrahaptix embraced these tools, and it paid off. They also leaned into just-in-time manufacturing, cutting overhead and ensuring lean operations — a game-changer in a country where warehousing costs can be crippling.
The Road Ahead: Still Bumpy
Let’s be clear: these wins, while promising, do not yet represent a robust hardware ecosystem. Most Nigerian hardware founders still face sky-high production costs, weak infrastructure, and a dearth of technical support.
And there’s the talent gap. As more Nigerian engineers gravitate toward software, hardware gets left behind. For hardware to thrive, universities, accelerators, and even the government need to invest in specialised training, better equipment, and real manufacturing hubs.
Yet, there is hope — and maybe even urgency.
Nwanchukwu believes that global geopolitical shifts could favour African hardware manufacturing. As the West looks to reduce reliance on China and China itself transitions into a more service-led economy, someone has to fill the gap. Why not Nigeria?
Policy changes like Nigeria’s solar panel import ban suggest the current administration is at least paying attention. But regulation alone won’t fix this. It will take capital, infrastructure, and a shift in mindset from both investors and entrepreneurs.
Conclusion: From Exceptions to the New Rule?
The story of Humane — both the Nigerian version that never made it and the American version that burned through $230 million — proves one thing: hardware is hard. But NEV Electric and Terrahaptix show us that hard doesn’t mean impossible.
Their success should not be seen as anomalies but as blueprints. If more startups — and the ecosystem at large — can learn from their strategies, Nigeria might not just have a few hardware success stories. It might just build a movement.
