Federal Govt To Increase Tech Startups Funding To $5bn Annually

The federal government has outlined plans to fund Nigerian tech firms at a pace of $5 billion per year 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.

Tijani averred that from around $1.2 billion in funding recorded in 2022, the government would ensure a 50 per cent increase in funding every year to achieve the $5 billion target by 2027.

While the majority of Nigerian startups now receive their funding from international investors, Tijani assured that local funding would rise as a result of government initiatives.

According to him, the goal is to encourage startup domiciliation within the nation and to provide an atmosphere in which they may obtain the capital they need to prosper domestically.

The minister stated that one of the tactics to increase funding for Nigeria’s startup ecosystem is to “Establish an active sandbox environment that encourages and empowers innovators and entrepreneurs to develop distinctive solutions for sectors that have traditionally been thought to have limited exposure to technological innovation. We want to encourage creative, problem-solving solutions to current difficulties by removing regulatory impediments and offering the necessary support.

“With the goal of supporting the diversification of the Nigerian economy, we will collaborate with other ministries and parastatals including private sector stakeholders to drive opportunities for startups to facilitate the application of technology for enhanced productivity in critical sectors across the country.

We will back programmes focused on AgriTech, HealthTech, EdTech, MediaTech, CleanTech, CreTech, among others.”

Tijani said the ministry would also identify opportunities for the digital economy in various sectors such as 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.

Based on these opportunities, he said, the government would launch at least one ministry-led Public-Private Partnership (PPP) pilot program per sector by 2027, while noting that, the strategic Blueprint of the ministry encompasses five key pillars, which include Knowledge, Policy, Infrastructure, Innovation, entrepreneurship and capital (IEC), and Trade.

“Wach pillar is integral to the Ministry’s mission and interconnected with others, forming the foundation of the strategy. Knowledge is the cornerstone upon which innovation thrives, and is built upon the bedrock of sound policies. Infrastructure provides the essential backbone for a thriving digital economy, while innovation and entrepreneurship drive economic diversification. Trade, the fifth pillar, represents our commitment to global collaboration and partnerships, recognizing that innovation knows no borders.

“As we embark on this transformative journey, we do so with an unwavering sense of purpose. We understand that the road ahead may be challenging, but it is through these challenges that we find the impetus to evolve and adapt. Together, we will harness the power of technology to elevate Nigeria’s standing on the global stage, create sustainable employment opportunities, and improve the quality of life for all Nigerians,” Tijani averred.