The Federal Government of Nigeria has allocated $5 billion in support of burgeoning startups, with a vision to elevate their annual funding endeavors to this substantial sum by the year 2027.
Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, unveiled this ambitious plan in a strategic document titled ‘Accelerating our Collective Prosperity through Technical Efficiency: A Strategic Plan for the Federal Ministry of Communications, Innovation & Digital Economy.’
In the context of today’s global technological landscape, Dr. Tijani emphasized the pivotal role played by innovation, entrepreneurship, and access to capital in nurturing a robust digital economy.
The primary objective of the ministry is to foster the growth and resilience of startups, with a special emphasis on those pioneering innovative solutions in critical sectors of the economy.
Dr. Tijani stated, “Recognizing the crucial role of patient capital in nurturing startups, we are committed to enhancing its availability locally. Our aim is to create an environment where startups can secure the necessary funding to flourish within our nation.”
He also outlined a key metric for measuring the success of this initiative: “To increase the capital raised by Nigerian tech startups by 50 percent year-on-year, moving from approximately $1 billion per year in 2022 to a substantial $5 billion per year by 2027.”
In 2022, Nigerian startups managed to secure $1.2 billion in funding, a noteworthy achievement amidst challenging funding conditions, according to Africa The Big Deal, an African funding data insights firm. Meanwhile, Briter Bridges reported that African startups collectively raised $5.4 billion in the same year.
Furthermore, Dr. Tijani revealed plans to establish a dynamic sandbox environment, fostering innovation and empowering entrepreneurs to devise unique solutions for sectors that have been historically underserved by technological innovation.
Highlighting a significant goal, the minister expressed the nation’s aspiration to raise the percentage of locally domiciled technology startups from less than 1 percent to an impressive 25 percent by 2027, thereby amplifying their contributions to the economy.
Dr. Tijani underlined the transformative potential of digitalization and innovation in propelling economic advancement, emphasizing that the synergy between a robust digital economy and the nation’s innovative and youthful population presents a distinctive avenue toward prosperity, inclusivity, and global significance.
In addition, Dr. Tijani underscored the significance of Artificial Intelligence (AI), stating that this technology will usher in a new era of technological and economic transformation over the next two decades. Nigeria is poised to formulate a comprehensive national strategy for the inclusive and responsible utilization of AI’s potential.
He articulated, “The implementation of this strategy, among other objectives, is expected to position Nigeria as a top 10 global hub for AI model training and talent. Furthermore, we aim to establish Nigeria as a global leader in advancing inclusivity within AI datasets.”
Dr. Tijani concluded by revealing the nation’s intention to create more than 50,000 jobs in the AI industry within the next few years.
