TECH DIGEST- Nigeria is making a bold move to amplify its presence in the global tech arena. The country’s Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has unveiled a groundbreaking initiative aimed at catapulting Nigeria’s tech industry onto the world stage.

The Federal Executive Council (FEC) has sanctioned the conversion of a government-owned property in San Francisco, USA, into the Nigerian Digital Technology Exchange Programme Hub, also known as the Nigeria Startup House. This strategic endeavour is poised to serve as a critical platform for attracting Foreign Direct Investment (FDI), leveraging the proximity to the San Francisco Bay Area’s dense concentration of international organizations and venture capital firms.

In 2023, Nigerian tech startups secured a significant portion of their $1.3 billion funding from venture capitalists based in the Bay Area. The new hub is designed to capitalize on this trend, enhancing the visibility of Nigeria’s burgeoning startup ecosystem and making it more appealing to global investors and collaborators.

By establishing a foothold in Silicon Valley, a region with a GDP exceeding $929 billion and home to over 200 of the world’s leading companies, Nigeria aims to stimulate substantial economic growth and innovation. The Nigeria Startup House will not only increase the exposure of Nigerian startups but also foster critical connections and collaborations with international tech players, driving the nation’s growth within the global technology landscape.

The Nigerian government, through the Ministry of Communications and Digital Economy (FMCIDE) and the Ministry of Foreign Affairs (MFA), will retain ownership of the San Francisco property. However, its operations will be managed by a consortium of Nigerian tech companies, utilizing non-public funding to ensure efficient and effective management.

This initiative underscores Nigeria’s commitment to fostering an interconnected tech industry, ultimately promoting the country’s economic interests on a global scale.

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As the world shift from certificate to skill acquisition, the Director General, National Information Technology Development Agency (NITDA), Kashifu Inuwa, CCIE has advised the Nigerian Education Loan Fund (NELFUND) the administrator of the student loan initiative programme of the current administration to consider accommodating Nigerians who want to enroll in short courses that will equip them with digital skills.

Mr. Kashifu Inuwa, who made this known in Abuja while receiving a delegation from NELFUND led by the Executive Secretary Mr Akintunde Sawyer said this will empower citizens with high-in-demand global skills that will position Nigeria as a hotspot for brain export.

The purpose of the meeting was to learn, collaborate, and present a demo of the NELFUND Portal to NITDA for input.
He stated that because no one succeeds in isolation, it is important to take into cognisance., the role of the five critical stakeholders of the ecosystem and synergise with them.

He mentioned that these stakeholders include, higher institutions of learning, corporate organisations, entrepreneurs, venture capitalists, and the government.

He said, “Higher institutions of learning produce the human capital, so they need to be worked with closely because they need to understand the skills in demand; corporate organisations absorb the human capital by employing them or buying products from entrepreneurs, so if there is a gap between the institution and corporate organisation, it will be difficult to place graduates on jobs as most of our graduates cannot fit into the private sector unless undergoing these short courses.”

While acknowledging that NITDA is working with the Federal Ministry of Education to review the curriculum of tertiary institutions to meet, Inuwa said, “For Entrepreneurs, they could be students, dropouts, or anybody who has an idea that meets a need and that students should be trained with the mindset that they are acquiring certificates to create jobs and not just to seek white-collar jobs.”

He stated that venture capitalists should be encouraged to invest, as Nigeria’s technology ecosystem attracts more than 30 percent of Foreign Direct Investment (FDI).

He said, “70 per cent of that investment comes from the United States while we have Nigerians who have money; that is why we are trying to set up the seed funding for startups that will encourage indigenous venture capitalists.”

The NITDA boss commended the work put into the development of the NELFUND portal as he said the portal should be made mobile friendly as there are many people that will access the portal through their mobile phones.

He further stated, “We can organise a user acceptance test to check vulnerability to ensure that it is okay. I also want to advise that you carryout the Data Protection Compliance Test to ensure you are complying with the Nigeria Data Protection Regulations (NDPR).”

Kashifu assured NELFUND of the Agency’s commitment to giving them all the necessary support as their interest aligns with NITDA’s Strategic Roadmap and Action Plan (SRAP 2.0).

The Executive Secretary of NELFUND Mr Sawyer said, the initiative intends to connect as many Nigerians as possible to the fund in order to obtain tertiary education and pay back after their one year mandatory National Youth Service programme.

He said, “Our mission is to strive to revolutionise higher education accessibility in Nigeria by providing interest-free loans to eligible students. We want to help as many people as possible get to the next level as it will benefit the individual, institutions, and the nation at large.”

The ES said they have come to be challenged by NITDA in other to do better, collaborate, and learn from the Agency.

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TECHDIGEST – Nigeria witnessed an impressive 11.26% increase in telecommunication access during 2022, despite facing a significant 46.89% decline in Foreign Direct Investment (FDI), according to a recent report by the Nigerian Communications Commission (NCC).

The NCC’s ‘2022 Subscriber/Network Data Annual Report’ highlighted that operators successfully deployed an additional 12,882 base stations in 2022, elevating the total count to 127,294 from 114,412 in the previous year.

This expansion effectively enhanced the coverage and availability of essential telecom services like calling and internet access.This surge in access was further demonstrated by a rise in broadband penetration, reaching 47.36% by December 2022, up from 40.88% in the prior year.

Active subscriptions also experienced an upswing, climbing from 195.46 million in 2021 to an impressive 222.57 million.Moreover, the report disclosed a notable improvement in teledensity, ascending from 102.40% in 2021 to 116.60% in 2022.

Internet subscriptions saw a corresponding increase, growing from 141.97 million in 2021 to 154.85 million the following year.The NCC emphasized the widespread coverage of network technologies, stating that 93.90% of the population enjoyed access to a 2G network, while 86.82% had access to 3G, and 80.86% were covered by LTE/WiMAX networks.

The commission stated, “Telecom providers achieved significant infrastructure deployment in 2022.”

The expansion of fiber infrastructure, both terrestrial and submarine, was a key driver of the surge in data consumption, which jumped by 46.77% to reach 518,381.78 terabytes in the country. Such growth in telecom access plays a pivotal role in advancing the digital economy and ensuring effective communication services across the nation.

Earlier this year, the NCC revealed a substantial reduction in the number of Nigerians without telecom access, which dropped by 37.04% to 27 million in 2022. Notably, the percentage of identified clusters lacking telecom access decreased to 53.1% by year-end.Prof. Umar Danbatta, the Executive Vice Chairman and CEO of NCC, highlighted the commission’s efforts to expand telecom services to rural and underserved areas.

READ ALSO: NITDA Launches Initiative to Verify NYSC Certificates with Blockchain 

He noted, “We have diligently worked to bring telecom services to 37 million people residing in rural and underserved regions, a project initiated in 2013. By 2022, we have reduced access gaps to 97 clusters from the initial 207 in 2013, decreasing the number of underserved Nigerians from 37 million to 27 million.”

While telecommunication access flourished, FDI in the sector experienced a significant drop of 46.89%, falling to $399.91 million in 2022 from $753.05 million in the preceding year, underscoring the challenging economic conditions.Citing data from the Central Bank of Nigeria, the NCC stated, “Foreign Direct Investment (FDI) in the Nigerian telecom industry for 2022 totaled approximately $399.91 million, compared to $753.05 million in 2021.”

Despite the continued rollout of 4G and 5G networks, foreign investment decreased in 2022, largely attributed to the scarcity of foreign exchange and government policies.

The NCC’s ‘National Policy for the Promotion of Indigenous Content in the Nigerian Telecommunications Sector’ document estimated an annual foreign outflow of $2.6 billion, while the sector only attracted $399.91 million in the same period.

An industry expert highlighted the impact of foreign exchange shortage on equipment imports and investments, stating, “The lack of forex has hindered equipment imports and subsequently reduced investments. Additionally, challenges such as obtaining end-user certificates for equipment importation have further contributed to this decline.”

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TECHDIGEST – The Director-General, National Information Technology Development Agency (NITDA), Kashifu Inuwa CCIE, reassured stakeholders that the agency’s regulations are not intended to stifle innovation but rather to foster growth and development in the digital space.

Inuwa made this remark during a Panel Discussion at the Business Day CEO Forum 2023 on ‘Charting a Course to Growth and Development’ which took place at Eko Hotels and Suites, Victoria Island, Lagos State.

The DG said that, NITDA’s regulations are designed to promote innovation by creating a level playing field for all players in the digital ecosystem, adding that the agency is committed to working with stakeholders to ensure that the regulations are implemented in a way that does not stifle innovation.

He said, NITDA as a regulator, is aware of the environment, technologies, and innovations by being intelligent in the way it regulates not stifle innovation, but rather to create a market for businesses to grow.

Inuwa acknowledged that while regulation is necessary, it should not impede the progress of innovation and hinder the growth of Startups and technology-driven businesses, as they strive to strike a delicate balance between enabling innovation and safeguarding the interests of consumers, investors, and the general public.

READ ALSO: MSMEs Will Contribute $53b To Nigeria’s Economy If Digitised — NITDA Boss

He noted that NITDA’s framework takes into account both rule-based and non-rule-based regulations, which according to him, the latter approach is favoured by the government, as it allows for collaboration with industry stakeholders to develop the sector and formulate recommendations for compliance.

He opined that there is need for flexibility in regulations, acknowledging that policies may need to be withdrawn and substituted if they are not effective in supporting the ecosystem.

“At NITDA, any intervention is designed to influence business, social and market behaviour, and we have four objectives for any regulatory instrument we are issuing” Firstly, it must create a market or domesticate access to products and services; Secondly, it must protect consumers; thirdly, it must enable innovation; and fourthly how it can improve service delivery.

“The Agency has in place diverse regulations and Policies like the Blockchain Policy, Artificial Intelligence Policy and the Nigeria Data Protection Regulation (NDPR), though NDPR has evolved into a full law and now a Commission was established and is in charge of data regulation, which our regulatory role gave birth to,” he said.
While quoting the Korn Ferry report, the DG said by 2030, there will be a global human talent shortage of more than 85 million people, or roughly equivalent to the population resulting in 8.5 trillion USD unrealised annual revenues.

“As we are moving towards digitisation, talent and knowledge-based economy, a company is as good as its next product and the next product is as good as the people who make it. We need to learn how to attract, retain and harness talent. Talent is the human component and a huge market for the advancement of the country.

The DG added that Nigeria with her young population, can seize the opportunity and position herself to become the global talent factory because she has proven that in sports, music and film industry.

Inuwa said the same can be done in technology and data, particularly cybersecurity, because cybercrime is the biggest venture in the world today according to Cybersecurity Ventures Magazine, which reported that cybercrime will cost the world about 8.1 trillion USD, which is bigger than all crimes combined. “So, as you digitise, cybersecurity is pivotal, you need to look into your cyber hygiene, build confidence and trust for your users” he added.

The DG stated that NITDA is working towards establishing Public Key Infrastructure (PKI) which is aimed at helping to build trust and confidence for all its digital services, bringing about growth and development thus attracting Foreign Direct Investments (FDI).

The event was honoured with the presence of the Chairman of the African Development Bank (ADB), Dr Akinwumi Adesina, Governor of Edo State, Mr Godwin Obaseki, Governor of Jigawa State, Alh. Umar Namadi, CEO of MTN Group, Mr Ralph Mupika, Chairman, Shell Companies Nigeria, Mr Osagie Okunbor and many other dignitaries.

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TECHDIGEST – The Director General, National Information Technology Development Agency, Kashifu Inuwa has called on a group of international investors in Germany  to invest in the Nigeria tech ecosystem because doing so is valued and come with many rewards.

Speaking on the topic, “the Evolution of the Nigeria Tech Ecosystem” which was a conversation with Ludwig von Bayern Startup Lions, Germany, the Director General said, “Nigeria provides opportunities for entrepreneurs to quickly and conveniently start and grow businesses.”    

According to Inuwa, the future of Nigeria is much more promising than today due to the four comparative advantages the nation has over other countries  of the world, adding that these four advantages could hardly be gotten anywhere else in the world. “There are four comparative advantages you will never get anywhere in the world but Nigeria. So, come to Nigeria and invest such that you can easily get these comparative advantages,” he said.  

Listing the comparative advantages, the NITDA boss informed his audience that Nigeria’s large population and its emerging economic status positioned it at a pole-length as a suitable investment destination in Africa. “Africa is a continent with 54 countries and 1.4 billion people with 2.9 trillion GDP.

Nigeria alone has 15 percent of the population and the GDP, so investing in Nigeria is like investing in Africa. Moreover, it is emerging because if you look at the tech-ecosystem, Nigeria attracts 30 per cent of the continent’s Foreign Direct Investment FDI. Last year alone, the country attracted more than 2 billion USD.

Inuwa stated further that the level of support the government now gives to the tech ecosystem is unparallel in the history of the country. He said the government has been supporting innovation and startup. There are so many interventions in term of policies, laws and infrastructure to help businesses to grow. 

READ ALSO: 2023 Polls: NITDA cautions journalists against fake news

He said, “In 2019, the President expanded the mandates of our ministry to cover digital economy. Before, it was just ministry of Communications but realizing that communication is not the end but a means to an end, while the end is how we can use technology for economic prosperity.”

He recalled the passage of the Nigerian Startup Act, the Executive Order on Ease of Doing Business including other incentives like visa on arrival and business incorporation under 24 hours were all aimed at transforming the country. 

“Thirdly, we have youthful and talented population which you can never get anywhere in the world. While the developed countries are suffering from aging population, we have one of the youngest populations in the world,” he observed. 

According to him, Nigeria has high potential for social and economic impacts and investing in the country would help the country solve mirage of challenges bedeviling the nation. 

We have so many challenges that need innovative ways of solution; we have challenges around healthcare, financial inclusion, education, transportation, and logistics. “And you all know IT or technology can provide faster solutions for us to solve all these problems.”

While urging the investors to look the way of Nigeria, Inuwa invited them to grace the Africa Tech Conference that comes up in July 2023.            

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