Strategies have been unveiled by the federal government to increase funding for Nigerian tech startups to $5 billion annually by the year 2027.
The Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, disclosed this in his Ministry’s draft Strategic Blueprint released on Monday.
According to him, from around $1.2 billion in funding recorded in 2022, the government would ensure a 50% increase in funding every year to achieve the $5 billion target by 2027.
While most Nigerian startups are currently sourcing their funding from foreign investors, Tijani said the government would drive an increase in local funding.
According to him, the intent is to create an environment for startups to raise the funding they require to thrive locally and promote the domiciliation of startups within the country.
Empowering innovators
As part of the strategies to attract more funding to the startup ecosystem in Nigeria, the Minister said:
“We will establish an active sandbox environment that encourages and empowers innovators and entrepreneurs to develop unique solutions for sectors historically considered to have limited exposure to technological innovation. By removing regulatory barriers and providing the required support, we aim to inspire innovative, problem-solving approaches to existing challenges.
“With the goal of supporting the diversification of the Nigerian economy, we will collaborate with other ministries and parastatals including private sector stakeholders to drive opportunities for startups to facilitate the application of technology for enhanced productivity in critical sectors across the country. We will back programmes focused on AgriTech, HealthTech, EdTech, MediaTech, CleanTech, CreTech, among others.”
Tijani said the Ministry would also identify opportunities for the digital economy in various sectors such as Agriculture, Financial Services, Healthcare, Education, Energy, Transportation and Logistics, Manufacturing, Retail and E-commerce, Textiles and Fashion, Media and Entertainment, eSports/Gaming, and Real Estate.
Based on these opportunities, he said the government would launch at least one ministry-led Public-Private Partnership (PPP) pilot program per sector by 2027.
5 pillars of the Blueprint
The Minister noted that the strategic Blueprint of the Ministry encompasses five key pillars, which include Knowledge, Policy, Infrastructure, Innovation, entrepreneurship and capital (IEC), and Trade.
According to him, each pillar is integral to the Ministry’s mission and interconnected with others, forming the foundation of the strategy.
“Knowledge is the cornerstone upon which innovation thrives, and is built upon the bedrock of sound policies. Infrastructure provides the essential backbone for a thriving digital economy, while innovation and entrepreneurship drive economic diversification. Trade, the fifth pillar, represents our commitment to global collaboration and partnerships, recognizing that innovation knows no borders.
“As we embark on this transformative journey, we do so with an unwavering sense of purpose. We understand that the road ahead may be challenging, but it is through these challenges that we find the impetus to evolve and adapt. Together, we will harness the power of technology to elevate Nigeria’s standing on the global stage, create sustainable employment opportunities, and improve the quality of life for all Nigerians,” the Minister said.
