Nigeria is setting its sights on attracting $5 billion in annual tech startup investments by 2027, unveiling a strategic plan to bolster the local tech ecosystem and foster innovation.
Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, announced this ambitious goal as part of the country’s broader plan to accelerate its digital economy.
In a report titled “Accelerating our Collective Prosperity through Technical Efficiency: A Strategic Plan for the Federal Ministry of Communications, Innovation & Digital Economy,” Dr. Tijani highlighted the pivotal role of innovation, entrepreneurship, and access to financing in the global tech landscape. He emphasized the ministry’s commitment to nurturing startups, particularly those pioneering groundbreaking solutions across key economic sectors, Business Insider Africa reported.
Acknowledging the importance of patient capital in startup growth, the minister stated that the ministry aims to boost the availability of such capital locally. The objective is to create an environment conducive to startups raising the necessary funds to thrive within Nigeria, ultimately encouraging more startups to establish themselves in the country.
To measure the effectiveness of this strategy, Dr. Tijani outlined a clear target: “Increase capital raised by Nigerian tech startups 50 percent year-on-year from ~$1 billion/yr in 2022 to $5 billion/yr in 2027.”
Furthermore, the ministry plans to establish an active sandbox environment to inspire and empower entrepreneurs and innovators to devise specialized solutions for industries that have had limited exposure to technological advancements.
Nigeria also aims to substantially boost the domiciliation of local tech startups, with a target of increasing it from less than 1 percent to 25 percent by 2027. This move is expected to enhance the startups’ contributions to the Nigerian economy significantly.
Dr. Tijani stressed the growing significance of digital transformation and innovation as drivers of economic progress. He underscored the unique opportunity presented by the intersection of a robust digital economy and Nigeria’s innovative and youthful population, envisioning a path toward prosperity, inclusivity, and global relevance.
Nigeria’s strategic plan reflects its commitment to positioning itself as a prominent player in the global tech landscape, fostering an ecosystem conducive to innovation, investment, and sustainable growth.