Nigeria’s Startups Invent 384 Products as Digitisation Expands – Kashifu
TECHDIGEST – Nigeria is said to have produced over 2000 digital innovation companies, which have subsequently invented some 384-technology products. The Director-General of the National Information Technology Development Agency (NITDA) Kashifu Inuwa, which disclosed this, said these companies, which are largely startups raised over $2 billion in venture capital funding in 2021 alone.
As such, Inuwa said the digitisation policy drive of the Federal Government as contained in the National Digital Economy Policy and Strategy (NDEPS) is impacting positively in corporate governance, Business-to-Business (B2B), Business-to-Customer (B2C), and Business-to-Government (B2G) relationships.
Inuwa stated this while delivering a good will message at the Validation Workshop for the National e-Commerce Policy and Strategy by the National Advisory Committee, on Electronic Commerce and Digital Economy (NACEDE), which took place in Abuja.
He said digital economic sector, which is a super-set of e-commerce, remains key to Nigeria’s economic recovery in the post-COVID era, deploying new technological innovations, such as e-commerce platforms, including social media-enabled trading handles, and ensuring rapid uptake of e-commerce for economic growth and competitiveness.
“Nigeria is experiencing the positive impact of e-commerce activities due to the growing increase in access to the Internet and related IT tools and services. The contributions of the telecommunications sector to the national Gross Domestic Product (GDP) was an average15 per cent in July 2022 and experienced 44.5 per cent broadband penetration with active Internet subscriptions that peaked at 151 million,” Inuwa said.
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The DG, who was represented by the Acting Director, Digital Economy and Development Department, Salisu Kaka, further said, “we have approximately 2000 digital innovation companies with 384 products in Nigeria. These Startups have raised over $2 billion in venture capital funding in 2021 alone. With an estimated 89,000 developers representing 12 per cent of the African developers’ population, Nigeria’s e-commerce market size is about $17 billion. There is yearly spending of about $12 billion in 2022, and this is projected to reach $75 billion by 2025.
“Micro, Small and Medium Enterprises (MSMEs) appear to be the major beneficiaries of the concept of e-commerce as it enabled MSMEs to operate in the global marketplace. MSMEs can now participate in regional businesses and enjoys social, economic, and cultural networks seamlessly across international boundaries.
“Global corporations now operate with much consistency while MSMEs experience enhanced participation in international value chains, increased market access and reach improved internal and external market efficiency, and lower transaction costs,” he noted.
He also said that there is a need to maintain the tide and optimise the benefit of technology and e-commerce, which have necessitated Nigeria to have a robust national e-commerce policy and strategy.
“Additionally, Nigeria is a signatory to bilateral, regional, continental, and global treaties on trade and trade-related activities. Having a national policy that recognized these treaties is necessary for the mutual benefit of member nations.
“The policy will help us as a nation to make use of trade agreements that facilitate e-commerce for national benefits and avoid possible distortions that could jeopardize the optimization of the opportunities in e-commerce and hinders the growth of our businesses.
“The Federal Government of Nigeria, under the leadership of His Excellency, President Muhammad Buhari, through the supervision of the Minister of Communications and Digital Economy. Prof. Isa Pantami is keen on ensuring developments in Nigeria’s Digital Economy sector. I believe that e-commerce policy is central to these developments”, he added.
The Chairman of NACEDE, Suleiman Adebayo Audu, Director of the Commodities and Export Department, at the Federal Ministry of Industry, Trade and Investment in his earlier remarks stated that taking advantage of the Digital Economy will boost the growth of e-Commerce across the country thereby bringing Foreign Direct Investment (FDI), and grow the economy.
Adebayo averred that this policy document represented the priority of the Federal Government, the workshop will provide an avenue for inclusiveness of citizens to partake in the decision-making, and contributes ideas, initiatives, and critics that will be beneficial to the policy document before the full implementation for the benefit of the country.
The policy document will be compiled as part of the scorecard of the present administration, which will boost the operations of e-Commerce across the country.
