The Nigerian government has revealed ambitious plans to increase annual funding for tech startups in the country to $5 billion by 2027.
Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, shared this strategy as part of his ministry’s draft Strategic Blueprint.
Tijani emphasized the need to shift from the approximately $1.2 billion recorded in startup funding in 2022 to achieve a 50% annual increase in funding, ultimately reaching the $5 billion target.
Currently, many Nigerian startups rely on foreign investors for funding, but the government aims to promote local funding sources.
To encourage this shift, the government intends to create an environment that enables startups to secure the necessary funding locally and encourages the establishment and growth of startups within the country.
Some of the key strategies to attract more funding to the Nigerian startup ecosystem include:
- Establishing an active sandbox environment to empower innovators and entrepreneurs to develop solutions for sectors that historically had limited exposure to technological innovation. Removing regulatory barriers and providing support to foster problem-solving approaches to existing challenges.
- Collaborating with other ministries, private sector stakeholders, and parastatals to drive opportunities for startups in sectors like AgriTech, HealthTech, EdTech, MediaTech, CleanTech, CreTech, among others.
- Identifying opportunities for the digital economy in various sectors, including 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.
- Launching at least one ministry-led Public-Private Partnership (PPP) pilot program per sector by 2027 based on these opportunities.
The Minister highlighted that the ministry’s Strategic Blueprint comprises five key pillars: Knowledge, Policy, Infrastructure, Innovation, Entrepreneurship, and Capital (IEC), and Trade.
Each pillar plays an essential role in achieving the ministry’s mission and is interconnected with the others.