Nigeria has outlined a plan to increase the annual funding rounds for startups to $5 billion by 2027, as revealed by Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy…CONTINUE READING
This initiative was presented in a document titled “Accelerating our Collective Prosperity through Technical Efficiency: A Strategic Plan for the Federal Ministry of Communications, Innovation & Digital Economy.”
The minister emphasized the importance of innovation, entrepreneurship, and access to capital in the modern global technology landscape, noting that these factors are crucial for building a robust digital economy.
The ministry’s primary goal is to promote the growth and sustainability of startups, with a specific focus on those creating innovative solutions for key sectors of the economy.
Tijani stated, “Recognizing the vital role of patient capital in startup growth, we are committed to increasing the availability of patient capital locally.
We intend to create an environment where startups can secure the funding they need to thrive locally and contribute to our nation’s development.”
To gauge the success of this plan, the ministry aims to achieve a 50% year-on-year increase in capital raised by Nigerian tech startups, rising from approximately $1 billion per year in 2022 to $5 billion per year in 2027.
In 2022, Nigerian startups raised $1.2 billion, while African startups raised $5.4 billion, according to African funding data insight firm Africa The Big Deal and Briter Bridges, respectively.
The ministry also plans to establish an active sandbox environment to encourage and empower innovators and entrepreneurs to develop unique solutions for sectors with limited exposure to technological innovation.
Furthermore, the ministry aims to increase the percentage of locally domiciled technology startups from less than 1% to 25% by 2027, thereby enhancing their contributions to the economy.
Dr. Tijani emphasized the importance of digital transformation and innovation, stating that they serve as catalysts for economic progress.
He also highlighted the role of artificial intelligence (AI) in ushering in a new era of technological and economic transformation over the next two decades.
The ministry’s strategy aims to position Nigeria as a top 10 location for AI model training and talents globally and establish the country as a global leader in accelerating inclusivity in AI datasets.
