EU Engages Private Sector To Support Investments In Digital Space

The European Union (EU) has engaged the private sector to ramp up investments aimed at strengthening Nigeria’s digital economy ecosystem.

In line with the Global Gateway Strategy, the EU-Nigeria Digital Economy Package seeks to support Nigeria’s digital transition and the ambition of making the country a regional digital hub.

Key initiatives include support for the 90,000 km national fibre-optic expansion, improvement of digital public services, and upskilling of the ICT workforce through programs like the 3 Million Technical Talents (3MTT).

During a breakfast meeting with the private sector in Lagos, Massimo De Luca, Head of Cooperation at the EU Delegation to Nigeria and ECOWAS, disclosed that the EU is working to attract private sector support, particularly for the digital infrastructure component, and to strengthen public-private partnership frameworks in Nigeria.

He explained that this collaboration would allow the private sector to engage in large-scale projects, such as the 90,000 km expansion, with the support of the EU, which will provide guarantees and de-risking financial mechanisms.

“Digital public services and digital entrepreneurship could also present good opportunities for the private sector, as there are many procurement systems that would allow both the EU and Nigeria’s private sector to be part of this digital journey,” he said.

Regarding digital infrastructure investment, De Luca noted that the European Investment Bank (EIB) has, so far, invested €100 million to expand secure 4G connectivity in Lagos and Ogun states. The EU is also providing technical support for the rollout of the 90,000 km fibre-optic cable infrastructure across Nigeria and aims to scale up its support for the Special Purpose Vehicle of the project, bringing connectivity to both urban and rural areas, as outlined in Nigeria’s Broadband Strategy.

“This initiative will also improve the government’s interface with citizens and businesses, ensuring high standards of privacy, safety, and cybersecurity, while promoting an open internet and digital market. This creates opportunities for trusted vendors,” he stated.

Regarding the digitalisation of public services, De Luca shared that as a first step, the EIB will support the National Identity Management Commission (NIMC) with a €250 million loan to strengthen Nigeria’s digital identity infrastructure with the highest data protection standards.

The EU is also providing technical support for the digitalisation of the Office of the Vice President and engaging with the Federal Ministry of Communications, Innovation, and Digital Economy (FMCIDE) to facilitate better business registration for start-ups and Micro, Small, and Medium-sized Enterprises (MSMEs).

“With support for the necessary skills to help businesses and citizens fully benefit from the digital transformation, more technical talent will be directed toward Nigeria’s economy,” De Luca emphasized.

The EU is also backing the creation and scaling up of tech start-ups, boosting innovative solutions for Nigeria’s society and economy, and supporting young graduates, MSMEs, and start-ups.

To this end, the EU and Germany co-fund the Digital Transformation Centre (DTC), implemented by GIZ, which promotes innovation-friendly ecosystems and new digital solutions. The EU is also funding the Nigerian Jubilee Fellowship Programme (NJFP), which trains and deploys youths skilled in ICT into the labour market and supports the 3MTT initiative.

De Luca further explained that the EU supports the development of skills for the emerging digital economy, with a focus on youth and women. “This is partially achieved through the €9.5 million grant to the DTC project and a €45 million grant to the NJFP, which provides on-the-job training for young Nigerians and channels talent to Nigerian and EU companies across Nigeria.”

Speaking on the support from the EU and Germany for the DTC in Nigeria, Thuweba Diwani, Head of Project at GIZ-DTC Nigeria, stated that the initiative aims to create an interface between Nigerian private sector actors in the digital economy and their EU counterparts.