Decagon, a well-known tech training institute in Nigeria, is making a significant shift in its focus, moving away from tech education towards assisting learners in gaining admission to master’s programmes abroad. This change in direction comes after the company faced challenges with loan repayments and the country’s economic conditions.
Founded by Chika Nwobi in 2018, Decagon initially specialized in software engineering training. The institute launched its first cohort in 2019, offering an intensive six-month programme that ended with job placements for successful graduates. Unlike many other training institutes, Decagon ran a paid programme, with learners who couldn’t afford the cost having access to loans through partners like Sterling Bank and the Central Bank of Nigeria.
However, the repayment of these loans proved to be a challenge for Decagon. Despite securing jobs after graduation, many graduates did not repay their loans as expected. This led to Decagon having to intervene and cover the loan repayments to maintain a positive credit standing with its financial partners. Additionally, Nigeria’s macroeconomic conditions, such as rising inflation and increased lending rates by the CBN, further added to Decagon’s difficulties.
In an effort to reduce loan defaults, Decagon experimented with different programme models. One such model was a hybrid programme that offered a more affordable alternative to its on-site courses while requiring a similar time commitment. However, sources indicate that many learners were hesitant to choose this more affordable option, preferring the more expensive on-site courses.
This shift in focus by Decagon mirrors the changing landscape of tech training institutes in Nigeria. Other institutes like Andela have also adjusted their focus, moving from training entry-level developers to placing senior developers in jobs. AltSchool, on the other hand, has taken a different approach by charging learners a nominal application fee and monthly payments or an upfront fee, without guaranteeing job placements for successful graduates.
Decagon’s decision to pivot towards assisting learners in gaining admission to master’s programmes abroad reflects the institute’s commitment to adapt to the evolving needs of the tech industry and its learners. As the tech education landscape continues to evolve, Decagon’s strategic shift may prove to be a smart move in ensuring the institute’s sustainability and relevance in the industry.
