Federal Government Eyes 50% Annual Increase in Tech Startup Revenue — The Federal Government has unveiled ambitious plans to boost the revenue of Nigerian tech startups, targeting a 50% year-on-year increase. According to a strategic document titled ‘Strategic Plan for the Ministry of Communication, Innovation and Digital Economy,’ the government aims to escalate capital raised by these startups from $1 billion annually in 2022 to a whopping $5 billion by 2027.
The Minister of Communications, Innovation and Digital Economy, Bosun Tijani, disclosed these plans, emphasizing the identification and harnessing of opportunities in various sectors. These sectors include agriculture, financial services, healthcare, education, energy, transportation and logistics, manufacturing, retail and e-commerce, textiles and fashion, media and entertainment, sports/gaming, and real estate.
Central to this strategic plan is the prioritized implementation of the Nigeria Startup Act (NSA), signed into law in 2022. The Act is a crucial framework designed to foster the growth of Nigeria’s burgeoning startup ecosystem while aiding the development of tech talents and startups in the country.
Minister Tijani highlighted concerted efforts to double the number of startups with access to incentives and procurement opportunities, crucial for their growth and sustainability in the competitive market. He noted, “In a world undergoing rapid digital transformation and innovation, we stand at a pivotal moment in our journey towards an inclusive and prosperous future.”
Acknowledging the synergy between a robust digital economy and Nigeria’s innovative and youthful demographic, Tijani underscored the unique opportunity available for the nation. The strategic roadmap draws inspiration from President Tinubu’s Renewed Hope Agenda, recognizing the transformative power of technology and innovation as key drivers for economic development.
The outlined strategy rests on five foundational pillars: knowledge, policy, infrastructure, Innovation, Entrepreneurship & Capital (IEC), and trade. With these in place, the minister revealed nine priority policy, regulatory, and strategic initiatives identified for immediate review and implementation. The list includes the Nigeria National Broadband Plan, National Policy on Digital Public Infrastructure, National Blockchain Policy, National Artificial Intelligence Strategy, National Data Strategy, and the National Digital Literacy Framework among others.
Minister Tijani remarked, “Knowledge acts as the cornerstone for innovation, built on the bedrock of sound policies. While infrastructure serves as the backbone for a thriving digital economy, innovation and entrepreneurship are pivotal for economic diversification. Trade symbolizes our commitment to global collaboration, acknowledging that innovation is boundless.”
In a bid to enhance internet accessibility nationwide, the strategic plan also includes the rollout of a comprehensive broadband strategy, entailing the laying of 95,000 kilometers of fiber optic cables across Nigeria. This initiative will be complemented by efficient spectrum management to facilitate the deployment of innovative technologies and the establishment of a comprehensive Digital Public Infrastructure. The latter is envisioned as the cornerstone for nationwide digital transformation, further supported by the introduction of OneGOV, a unified portal for accessing all government services.
With a vision set on a substantial annual increase in tech startup revenue, the Federal Government’s strategic plan offers a detailed roadmap for achieving a $5 billion target by 2027. By focusing on multi-sectoral opportunities and prioritizing the implementation of supportive policies and infrastructure, the plan promises to usher in a new era of inclusive growth and prosperity powered by digital innovation. The coming years will undoubtedly be crucial in monitoring the successful execution of these outlined initiatives and the resultant impact on Nigeria’s tech startup ecosystem.