What Is Data Analysis? A Simple Explanation for Total Beginners (2025)
- David Bisina
- Nov 18
- 4 min read
Table of Contents
What Is Data Analysis? (Beginner-Friendly Definition)
Data analysis is the process of inspecting, cleaning, transforming, and modeling data to discover useful information and support decision-making. According to Simplilearn, it helps organizations understand patterns and trends so they can make smarter decisions.
In simple terms, data analysis helps you use information to solve problems. You can also read our beginner hub on Data Analysis in Nigeria. For example, a small business owner in Nigeria checking which products sell the most each week is already doing basic data analysis.
Why Data Analysis Matters in 2025 (Especially in Nigeria)
Data analysis is one of the most in-demand skills globally, and Nigeria is no exception. As businesses in fintech, e‑commerce, healthcare, and logistics continue to grow, they rely heavily on data to stay competitive.
A report from LinkedIn highlights data analysis as a top global skill for 2024 and beyond. For Nigerians, this means more opportunities for remote work, freelance projects, and local tech jobs.
Types of Data Analysis (Explained Simply)
There are four major types of data analysis:
1. Descriptive Analysis — What Happened?
This explains past events using charts or summaries. Example: “Our store sold 300 units last week.”
2. Diagnostic Analysis — Why Did It Happen?
Helps explain reasons behind outcomes. Example: “Sales dropped because marketing efforts slowed down.”
3. Predictive Analysis — What Will Happen Next?
Uses past data to forecast future outcomes — like predicting loan default risk.
4. Prescriptive Analysis — What Should We Do About It?
Helps businesses choose the best action. Example: “Increase ads on weekends to boost sales.”
Essential Tools Every Data Analyst Uses
Excel — The Foundation Tool
Excel is where most beginners start. It helps clean, analyze, and visualize data. Try the free version via Microsoft Excel Online.
SQL — The Language of Data
SQL helps analysts query large databases. According to Simplilearn, SQL is a core skill for all data professionals.
Power BI — For Beautiful Dashboards
Power BI helps you turn raw data into interactive visual reports.
AI Tools — The Future of Analytics
Tools like ChatGPT, Copilot, and AI-driven BI platforms help automate insights and speed up workflows.
Real Examples of Data Analysis in Nigeria
Fintechs analyze transactions to detect fraud.
Banks track loan repayment patterns.
E‑commerce companies like Jumia study customer behavior to improve sales.
NGOs analyze survey data to design better interventions.
Small shops track inventory and best‑selling items.
What Does a Data Analyst Do?
Data analysts clean, organize, and interpret data so organizations can make informed decisions. They also create dashboards, generate reports, and explain insights to stakeholders.
Daily tasks include:
Cleaning datasets
Running queries
Creating Excel or Power BI reports
Visualizing trends
Presenting insights
How to Start Learning Data Analysis (Step-by-Step Guide)
Step 1 — Take a Structured Beginner Course
Structured learning helps you progress faster.
Step 2 — Begin With Excel Basics
If you're completely new,Learn formulas, charts, pivot tables, and data cleaning.
Step 3— Learn SQL for Data Retrieval
Master basic queries and database operations.
Step 4— Learn Data Visualization (Power BI)
Create dashboards that tell compelling stories.
Step 5— Work on Small Projects
Use real datasets from Kaggle or local business data.
Recommended Beginner Course
🎓 Data Analytics – SQL, Excel & Power BI + AI Guide (By Ifiokobong Akpan)
This all‑in‑one course teaches:
Excel for real analysis tasks
SQL for querying databases
Power BI for dashboards
AI tools for automation
It’s beginner‑friendly and perfect for Nigerians who want to develop job‑ready skills.
How Nigerians Can Make Money With Data Analysis
Freelancing
Platforms like Upwork and Fiverr have thousands of data projects.
Remote Jobs
LinkedIn and Indeed regularly list remote analyst roles accessible to Nigerians.
Local Opportunities
Banks, startups, SMEs, and NGOs all hire analysts.
Teach or Consult
Create tutorials or training sessions online.
Common Mistakes Beginners Should Avoid
Ignoring the basics and jumping straight into advanced tools
Learning too many tools at once
Not practicing with real data
Avoiding Excel (the most important foundation)
Free Resources to Practice Data Analysis
Kaggle — practice with real datasets
Microsoft Learn — Excel & Power BI tutorials
Google Sheets — practice spreadsheets
SQLZoo — learn SQL interactively
Get Your Free Data Analysis Starter Guide
Looking for more skills? See our guide on Make Money online in Nigeria.
If you want to start learning data analysis the right way, I created a free beginner-friendly guide that walks you through your first 7 days. It includes:
What tools to download
Daily practice tasks (Excel, SQL, Power BI)
Free datasets you can start using today
Tips to stay consistent and avoid overwhelm
📘 Download your Free Data Analysis Starter Guide here → Get the Guide
Final Thoughts
Data analysis is one of the most beginner‑friendly tech skills. You don’t need a degree or special background to get started just curiosity, consistency, and practice.
If you’re serious about building a digital career in Nigeria, data analysis is one of the smartest skills to learn.
FAQs
1. What is data analysis in simple words?
It’s the process of using data to understand patterns, answer questions, and make decisions. According to Simplilearn, data analysis helps businesses improve performance using insights.
2. Is data analysis hard for beginners?
No. With tools like Excel, SQL, and Power BI, beginners can learn quickly using free resources.
3. How long does it take to learn data analysis?
Most beginners can learn the basics in 2–3 months with consistent practice.
4. Do I need math to become a data analyst?
Only basic arithmetic and logical thinking. Advanced math is optional unless you move into data science.
5. Can I make money online as a data analyst?
Yes. Nigerians can earn through freelancing, remote jobs, dashboard creation, and consulting.
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