60% of Nigerian startups incorporated in US — Consul
The Consul General at the United States Consulate in Lagos, Will Stevens, has stated that 60 per cent of Nigerian tech startups are incorporated in the United States, highlighting the growing collaboration between the tech sectors of both countries.
He stated this recently at the Africa Startup Festival in Lagos, where he discussed the increasing importance of Nigeria’s tech sector to its economy.
The annual event brought together top investors, founders, builders, and operators across the tech ecosystem.
In his keynote address, Stevens pointed out that the Information and Communication Technology sector now contributes 18 per cent to the country’s GDP, surpassing the share of the oil and gas industry.
“You represent the future of Nigeria’s economy and its relationship with the United States,” he told the gathering.
“By incorporating in the US, startups gain valuable protections for intellectual property and have access to venture capital in dollars, which helps minimise risks tied to currency fluctuations.”
The consul also noted that the US market is particularly attractive to Nigerian entrepreneurs seeking connections with global funding sources.
Stevens shared that 60 per cent of the venture capital invested in Nigeria’s tech sector comes from the US, underscoring the vital role American investors play in the growth of Nigerian startups.
Over the past two years, Stevens mentioned, the US Mission in Nigeria has worked to deepen these ties.
He referred to the Select USA programme, which connects US investors with international companies looking to incorporate or expand in the US.
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He also noted that half of Nigeria’s delegates to the programme have come from the tech sector in recent years.
“We’ve made significant efforts to support the tech ecosystem here,” Stevens said. “Our goal is to connect Nigerian startups with US investors, providing them with the resources and opportunities they need to grow.
“The increasing flow of US venture capital into Nigeria shows that our efforts are making a difference.”
Stevens also spoke about the benefits for Nigerian startups to join the American Business Council, which provides direct access to US policymakers.
The consul added that the US government is committed to supporting policy reforms in Nigeria that will encourage more investment, as well as offering expedited visa processing for startups.
Stevens explained that “About 60 per cent of Nigerian startups are incorporated in the US and are considered US businesses.
“This means they enjoy the same benefits as major corporations like Chevron, Exxon, and Microsoft, including the opportunity to participate in ABC and other business networks.”
Stevens also highlighted Nigeria’s growing significance in the global tech scene. He said. “Africa is the future.
“Nigeria, in particular, is on track to become one of the world’s largest economies by 2050.
“As startups, you hold the key to driving this transformation. We want to continue strengthening this relationship to ensure that both the US and Nigeria lead the way in technological innovation.”
Stevens reaffirmed the US government’s commitment to supporting Nigeria’s tech sector and ensuring its continued growth.
“We see tremendous potential for economic growth here,” he concluded.
“The future of Nigeria and its relationship with the US is incredibly bright, and we are committed to ensuring that the ties between our two nations continue to flourish.”
Punch
