Nigeria Tech Startup Ecosystem Attracts Offshore Investment Despite Challenges- NITDA
TECHDIGEST- Nigeria’s tech and innovation startup ecosystem continues to attract offshore investment, making the country the ultimate destination for tech investment on the African continent.
Despite monetary hiccups and political tensions, Nigeria accounts for about 30% of the total tech investment on the continent and nearly 95% for all West African countries, highlighting its increasing importance globally.
At a recent meeting organized by the National Information Technology Development Agency (NITDA) and the Federal Inland Revenue Service (FIRS), which brought together telecommunication companies, financial institutions, and other stakeholders, the Director General of NITDA, Kashifu Inuwa Abdullahi, emphasized the importance of driving support for the National Information Technology Development Fund (NITDEF).
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The engagement focused on how NITDA’s achievements adequately reflect taxpayers’ money and the need for prompt payment of levies from stakeholders, including multinationals like MTN and indigenous big corporate players like Zenith Bank.
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The NITDEF levy is charged at the rate of 1% of profit of ICT companies that includes “GSM service providers and all telecom companies, cyber companies and Internet providers, pension managers and pension-related companies, banks and other financial institutions,” among others. The meeting afforded NITDA a window to share its roadmap for making Nigeria a skill factory for the global economy and expanding the portfolio of opportunities in Nigeria’s digital economy by leveraging emerging technologies.
Nigeria’s pulsating growth in the tech industry is driven by a mix of factors, including its large population, which translates into a vast market, and a significant number of educated and trainable young people who can service the global IT economy at lower rates than equally skilled people in advanced markets. According to Abdullahi, Nigeria is home to about 30,000 startups, making it about ten times larger than Kenya and South Africa in terms of startup numbers. This makes it mandatory for Nigeria to draw up the right policy frameworks and statutes, including the new Nigeria Startup Act, anchored by NITDA.
The meeting with stakeholders provided an opportunity for NITDA to showcase its achievements and plans for the digital economy. The agency’s efforts towards expanding socio-economic opportunities and achieving the 95% digital literacy penetration target by 2030 were also discussed. The engagement highlighted the need for a continuous effort to bridge the digital skills gap in the country, develop a roadmap for the diversification of Nigeria’s economy and make its digital economy sustainable.
In conclusion, Nigeria’s tech and innovation startup ecosystem is thriving, and its increasing importance globally has made it the ultimate destination for tech investment on the African continent. The meeting between NITDA and stakeholders provided an opportunity to discuss the agency’s achievements, showcase its plans for the digital economy, and highlight the need for continued efforts to bridge the digital skills gap in the country. With the right policy frameworks and statutes, Nigeria can further expand the portfolio of opportunities in its digital economy by leveraging emerging technologies, making it an even more attractive destination for offshore investment.
