Nigerian HR-tech startup SeamlessHR is taking a bold step by targeting government agencies, positioning itself to tap into the high-value public sector market. With over 720,000 civil servants, Nigeria’s government represents a substantial opportunity for SeamlessHR’s long-term growth and scalability.
Having already built a solid foundation in the private sector, SeamlessHR is in talks with several ministries, departments, and agencies (MDAs), including the National Information Technology Development Agency (NITDA), to integrate them into its platform. The company’s Chief Technology Officer, Deji Lana, confirmed SeamlessHR’s ongoing collaboration with public institutions, including providing performance management services to the Nigerian Ports Authority (NPA) and recruitment solutions for the 3 Million Technical Talent (3MTT) program.
Expanding into the Public Sector
SeamlessHR’s move to enter the public sector is strategic and timely. The public sector faces persistent challenges, including:
- Lack of transparency in resource allocation.
- Ghost worker syndrome, where payrolls list non-existent employees.
- Inefficiency in human resource management.
The company believes its platform can help solve these challenges. “If we’ve done this for the private sector, why can’t we do it for the government as well?” said Lana. “There might be some unique configurations, but we’re confident our platform can adapt to meet the specific needs of government agencies.”
By addressing these issues, SeamlessHR hopes to play a role in modernizing Nigeria’s public sector and promoting fairness, transparency, and efficiency.
Growing Competition in HR-Tech
SeamlessHR’s expansion into the public sector comes at a time when the HR-tech market in Nigeria is becoming increasingly competitive. New startups like PaidHR, Ropay, WorkPay, Bento, NotchHR, and Cloudenly are emerging, challenging SeamlessHR’s dominance. However, Lana remains confident, citing the company’s holistic approach to building an end-to-end HR solution as a key differentiator.
“Our biggest competitors are global giants like SAP, Zoho, and Oracle,” Lana said. “While they’ve built scalable solutions, our deep understanding of local challenges gives us an edge.”
Challenges and Opportunities in Government Contracts
Opportunities
The Nigerian public sector offers a lucrative market for startups capable of providing efficient digital solutions. Companies like Remita, which handles ₦21 trillion in annual transactions, have demonstrated the potential for startups in this space. SeamlessHR hopes to become a critical player in the government’s ongoing digital transformation efforts.
Challenges
- Legacy Systems and Data Migration:
Many government agencies still rely on outdated legacy systems with years of accumulated data. SeamlessHR will need to integrate its solutions without disrupting operations, a process that could be complex and costly.
“Government organizations don’t need to switch all at once,” Lana suggested. “They can start by adopting individual modules and transition gradually.”
- Long Sales Cycles:
Public sector procurement processes are known for being slow and bureaucratic, which could delay SeamlessHR’s revenue generation. The company will need patience and persistence to secure long-term contracts.
Innovation and AI Integration
In addition to government expansion, SeamlessHR is exploring new technology integrations, including artificial intelligence (AI). According to Lana, the company is developing an AI-powered recruitment agent that can conduct interviews and streamline the hiring process, further enhancing its platform’s capabilities.
Conclusion
SeamlessHR’s venture into the public sector is ambitious but strategic. By helping Nigeria’s government tackle long-standing HR challenges, the company is positioning itself as a key player in the digital transformation of the public sector.
Its success will depend on its ability to:
- Overcome bureaucratic complexities.
- Secure government contracts.
- Smoothly migrate public institutions off legacy systems.
If SeamlessHR can meet these challenges head-on, it has the potential to redefine how human resources are managed in Nigeria’s public sector while cementing its place as a market leader in African HR-tech.