Nigeria plans to raise total yearly funding rounds for startups to $5bn by 2027
Nigeria has set a plan to help startups raise their total yearly funding rounds to $5bn by 2027.
The Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, disclosed this on Monday 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 explained that in today’s global technology landscape, innovation, entrepreneurship, and access to capital are critical components of a strong digital economy. He posited that the primary objective of the ministry as regards this will be to stimulate the growth and sustainability of startups, with a specific focus on those developing innovative solutions for critical sectors of the economy.
Tijani said, “Recognising the critical role of patient capital in the growth of startups, we are committed to increasing the local availability of patient capital. We intend to create an environment for startups to raise the funding they require to thrive locally and promote the domiciliation of startups within our nation.”
Commenting on how the ministry would measure if its plan were working, the minister said, “Increase capital raised by Nigerian tech startups 50 per cent year-on-year from ~$1bn/yr in 2022 to $5bn/yr in 2027.”
Amid a funding drought, according to Africa The Big Deal (an African funding data insight firm) Nigerian startups raised $1.2bn in 2022. According to Briter Bridges, African startups also raised $5.4bn in 2022.
Tijani announced that the ministry would establish an active sandbox environment to encourage and empower innovators and entrepreneurs to develop unique solutions for sectors considered to have limited exposure to technological innovation.
According to the minister, the country is hoping to increase the domiciliation of local technology startups from <1 per cent to 25 per cent by 2027, increasing their benefits to the economy.
Tijani added “Digital transformation and innovation are fast becoming a catalyst for economic progress,” and the “intersection of a strong digital economy and our innovative and youthful population presents us with a unique opportunity to chart a course towards prosperity, inclusion, and global relevance.”
Commenting on Artificial Intelligence, he highlighted that this technology will usher in a new era of technological and economic transformation over the next two decades. Nigeria needs to formulate a far-reaching national strategy to harness the potential of AI inclusively and responsibly.
Tijani pointed out that “The implementation of the strategy amongst other things is expected to elevate Nigeria as a top 10 location for AI model training and talents globally. In addition, we will position Nigeria as a global leader in accelerating inclusivity in AI dataset,” adde that the country plans to create over 50,000 jobs in the AI industry in the next couple of years.
