By Abbas Badmus

The Nigerian Information and Communication Technology (ICT) industry experienced both challenges and triumphs in 2023, marked by slow funding and leading to the closure of some startups.

However, the sector recorded significant wins, midwife by some key government policies and initiatives. The election year brought about changes in national leadership and a renewed focus on the tech ecosystem, setting the stage for a potentially-brighter 2024.

The emergence of Bosun Tijani, a prominent figure in the country’s tech ecosystem, as the Minister of Communications, Innovation, and Digital Economy, signaled a strategic shift in the government’s approach towards technology.

While the immediate-past administration had also made some vital policy announcements relating to the tech industry before its exit on May 29, 2023, here are some of the strategic policies that shaped the industry in 2023:

1. i-DICE Program

The i-DICE programme which aims to promote innovation and generate job opportunities within the technology sector was launched in March, 2023 under the immediate-past administration of former President Muhammadu Buhari.

The immediate-past Vice President Yemi Osinbajo launched the $672 million fund under the Investment in Digital and Creative Enterprises (i-DICE) program.

President Bola Tinubu’s administration took over the project on his assumption of office and set up an implementation committee headed by Vice President Kashim Shettima.

For the project, the African Development Bank is to put in $170 million, Agence Francaise de Developpement is to contribute $116 million will, and another $70 million from Islamic Development Bank.

The government through the Bank of Industry Nigeria will release $45 million while the private sector pledged $271 million.

Under i-DICE, constraints such as access to capital, and capacity limitation of Start-ups would be effectively addressed. But according to Osinbajo, more needs to be done to scale up such programs.

The multi-faceted funding approach involving international organizations and the private sector aimed to address capital constraints and capacity limitations for startups.

2. Suspension of 5% Telecom Tax

President Bola Tinubu’s administration took a decisive step in July 2023, by ordering the suspension of the 5% tax on telecom services.

Although the Buhari administration had early in the year announced its decision to put the implementation of the 5% tax on telecom services on hold, TInubu re-echoed this in July by ordering the suspension of the excise duty, thus bringing reprieve to Nigerians and the tech industry players riding on telecom services.

“The Excise Tax of 5% on telecommunication services has generated heated controversy. There is also a lack of clarity regarding the status of this tax, just as players in the sector also complain about the imposition of multiple taxes on their operations,” the Special Adviser, on Special Duties, Communication and Strategy, to the President, Dele Alake, stated while announcing the suspension.

This move provided relief to both Nigerians and tech industry players facing challenges posed by multiple taxes.

3. Three Million Technical Talent (3MTT) Program

In October 2023, the government launched the 3MTT program, a landmark initiative aimed at training three million Nigerians in tech skills over the next four years.

In the first phase of the program, 30,000 Nigerians were selected and are currently undergoing training in different IT skills areas including Cybersecurity, Data Analysis, SEO, among several others.

According to the Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, the program, a critical part of the Renewed Hope agenda, is aimed at building Nigeria’s technical talent backbone to power its digital economy and position Nigeria as a net talent exporter.

4. Data Protection Act

President Tinubu signed the Nigeria Data Protection Bill 2023 into law in June, establishing the Nigeria Data Protection Commission. The legislation provides a legal framework for protecting and regulating personal information, replacing the Nigeria Data Protection Bureau.

Recall that the Data Protection Bill was introduced to the Senate and House of Representatives for consideration and passage on Tuesday, 4 April 2023 via a letter from former President Buhari.

Now an Act, the new law establishes the Nigeria Data Protection Commission and replaces the Nigeria Data Protection Bureau (NDPB) established by President Buhari in February 2022.

5. AI Policy and NAIR Scheme

Acknowledging the global significance of Artificial Intelligence (AI), the federal government unveiled its National AI Strategy, supporting startups through the Nigeria Artificial Intelligence Research (NAIR) scheme.

The initiative selected 45 startups and individuals, each receiving a N5 million grant to develop AI projects across healthcare, agriculture, finance, and education.

According to the Minister of Communications, Innovation, and Digital Economy, the selected AI researchers cut across healthcare, agriculture, finance, and education, and they can propel Nigeria’s tech landscape onto the global stage.

He added that the Scheme aims to foster a vibrant and sustainable AI ecosystem in Nigeria by providing grants and facilitating knowledge sharing and collaboration among individuals and organizations in the AI industry.

6. Nigeria Startup Act Implementation

The Nigeria Startup Act, signed into law in October 2022, saw concrete steps taken towards its implementation in November 2023.

The government launched an engagement portal to register startups, initiating the process of setting up consultative forums to select representatives for the National Council for Digital Innovation and Entrepreneurship.

According to Dr. Tijani, the launch of the portal allows the government to initiate the process of setting up the startup consultative forums to select representatives to the National Council for Digital Innovation and Entrepreneurship to facilitate discourse and consensus among Nigerian ecosystem players.

Despite the challenges faced in 2023, the Nigerian tech industry experienced pivotal moments through government policies. The foundations laid last year have already set the stage for a likely prosperous 2024.

And while the success of these initiatives hinges on political will and meticulous implementation, the signs point towards a brighter future for the Nigerian tech sector.

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In a groundbreaking revelation at the Global Tech Africa Conference in Lagos, the United States Consul General in Nigeria, Will Stevens, unveiled a staggering statistic: 80% of Nigerian startups are incorporated in the United States.

Stevens emphasized the pivotal role the U.S. plays in Africa’s digital landscape, with up to 60% of African startups being incorporated in the U.S. at the continental level.

Speaking on the increasing venture capital investments in African startups, Stevens highlighted that over 60% and 40% of venture capital funding in Nigeria and Africa, respectively, originates from the United States.

This robust financial support has contributed to the growth of the digital economy in the continent.Stevens underscored the active participation of U.S. private sector entities in advancing technology across various sectors of the African economy.

He noted that U.S. venture capital firms are heavily investing in African tech startups, with major players such as Techstars, Y-Combinator, and 500 closing over 100 significant deals in the first nine months of the year.

The Consul General expressed pride in the collaborative efforts between the U.S. government and African partners, particularly in Nigeria.

He outlined initiatives aimed at leveraging technological innovations to address pressing challenges in education, healthcare, agriculture, and other vital developmental areas.

Stevens disclosed that the U.S. government is working closely with Nigerian partners to implement electronic health records systems, provide technology training for healthcare workers, and improve access to affordable medicines and vaccines.

Notably, Nigerian health technology companies like Healthbotics and Helium Health have capitalized on U.S. programs to develop groundbreaking technologies, enhancing healthcare systems for underserved communities.

Highlighting the U.S.’s commitment to Africa’s digital transformation, Stevens concluded by stating that the United States remains the largest single donor of bilateral aid to health in Nigeria, with funding exceeding $15 billion over the last two decades.

The U.S.-Africa startup/venture capital scene, according to Stevens, continues to be a crucial bilateral corridor, fostering mutually beneficial partnerships between the two regions.

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TECHDIGEST – Nine Nigerian technology innovators and startups have booked their spots in the semi final of the Supernova Challenge Pitch Competition organised by North Star Dubai, at the Gulf Information Technology Exhibition (GITEX), taking place in United Arab Emirates.

Supernova Challenge is the biggest pitch competition in the Middle East, Africa and South Asia, where Startups have opportunity to become the next unicorn, with upto $200,000 in cash prizes up for grabs.

As officially announced by North Star Dubai on their website, the Startups are Identity Pass, 9JaCodeKids Academy, Floews, Medtech, Paddycover, Pricepally, LiveBic, Technyon Technologies, and Wellness Health Technologies.

READ ALSO: Pantami Unveils Packages for Start-Ups as Nigerian Innovator Secures $10mntami Deal at GITEX2022

The Minister of Communications and Digital Economy, Prof. Isa Ali Ibrahim (Pantami) while inaugurating the Nigerian pavilion, commended the Startups that have so far scaled the competition’s preliminary stages, and expressed confidence in the ability of the team to progress to the finals and hopefully clinch the ultimate prize.

Prof. Pantami said, “Each and every year, Nigeria has been attending the Gulf Information Technology Exhibition GITEX because of its enormous benefits; these benefits are many, critical among them is attracting foreign direct investment”.

Accompanied by the Director-General of the National Information Technology Development Agency, (NITDA), Kashifu Inuwa CCIE, The Executive Vice-chairman of the Nigerian Communications Commission, (NCC), Prof. Umar Danbatta, the Director-General of the National Identity Management Commission, (NIMC), Engr Aliyu Aziz and the Managing Director/Chief Executive Officer of Galaxy Backbone, Prof. Muhammed Bello Abubakar as well as some Nigerian private ICT entrepreneurs, the Minister expressed delight in the highest number of startups at the 2022 GITEX.

“We have recorded significant milestones and great accomplishments in our bid to drive Nigeria’s economy digitally and our modest successes are verifiable”.

According to Professor Pantami, the federal government, in the last three years launched several programmes, policies and initiatives that are entrenching the trust between the tech ecosystem and the government towards strengthening the Nigerian digital economy sector.

The Director-General of NITDA Kashifu Inuwa CCIE also shared same optimism with the Minister as he noted that the Nigerian team will ace the competition and once again place the country on the global map.

Inuwa urged the tech innovators to ensure they also learn, unlearn and relearn by participating in other sideline events and conferences in order to build the necessary networks to add value to their craft.

GITEX Global 2022 is a meeting point for technology professionals and enthusiasts. The event is a thrust for the Global Startup Movement attracting world’s biggest technology mentors, angel investors and venture capitalists.

Nigerian startups are showcasing their innovative ideas to the world, interacting with other startups from different parts of Asia, Africa and Europe; luring investors to come to Nigeria and invest money in the country’s fast growing Digital economy.

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TECH DIGEST – On March 24th 2021, the National Information Technology Development Agency (NITDA) under the supervision of the Honourable Minister of Communications and Digital Economy, Dr Isa Ali Ibrahim Pantami, FNCS, FBCS, FIIM, is sponsoring five startups to take part in this year’s Smart City Summit and Expo (SCSE) organized by the Taipei Computer Association. SCSE is a professional tradeshow that provides opportunities for networking and marketing. The categories of the SCSE are smart epidemic prevention, smart health care, smart transportation, smart education, smart energy saving, smart building, smart manufacturing, smart security control, 5G solutions, AI and related solutions and other industry categories.

Part of the program is the Mayor’s Summit where the DG-NITDA will be discussing Nigeria’s smart City Vision and Strategy as well as the B2B matchmaking, which will avail Nigerian startups the opportunity to meet potential partners and attract Foreign Direct Investment into Nigeria.
The startups that are sponsored by NITDA at SCSE 2021 are:

VNTS: An all-in-one device for Home/SME LTE Broadband deployment that delivers superfast 5G/LTE Broadband using electrical cabling which distributes data & delivers complete Wi-Fi coverage;

LexChain: A digital solution using Blockchain to provide government, businesses and individuals the ability to verify and securely exchange digital assets;

Powerstove Energy: A versatile ‘Plug and Play’ Solar Home System that powers lights, radios, TVs and charges phones. Each unit is SMART, and connects remotely to the central database to support PAYG, enabling proactive maintenance and remote firmware updates;

Blieu Technologies: A new valve lock system deployed with remote cloud based correspondence intelligence and OTP, to monitor the operation of sensitive process valves remotely, thus check-mating the problem of petroleum products syphoning from storage tanks or theft of high value process chemicals.

Schoola: This is a gamified Artificial Intelligence learning solution that is curriculum agnostic and powered by local content generated by individual schools. They seek to leverage AI by first using machine learning to effectively help students, teachers, and schools get the best out of their solution.

The DG of NITDA Mallam Kashifu Inuwa Abdullahi, CCIE explained that entrepreneurial activity does not happen in silos, hence the Agency is committed to exposing Nigerian startups to global stage in order to attract more investors, enhance technology transfer viz-a-viz cross fertilization of ideas and innovations.

Signed:
Mrs Hadiza Umar, mnipr, m.apra, mcipr
Head, Corporate Affairs and External Relations
National Information Technology Development Agency (NITDA)
22nd March, 2021

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TECH DIGEST – The Federal Government says about 50 million dollars foreign investments are already being attracted into the economy for the support of various start-ups in the country through its digital economy and innovations policy.

The Minister of Communications and Digital Economy, Dr Isa Pantami, disclosed this while speaking with newsmen in Dubai, United Arab Emirates, shortly after unveiling Nigeria’s Pavillion at the 2020 40th Gulf Information Technology Exhibition(GITEX).

Pantami noted that the journey of start-ups is a tough one, but urged them to be consistent and steadfast as the breakthroughs might come after several years.

According to him, Nigeria was not lacking in terms of innovative ideas, stating that it was the plan of the government to identify the challenges confronting the start-ups and see how government could assist them.

The minister pointed out that start-ups in Lagos and Abuja have really made Nigeria proud as they keep attracting foreign investments into the country.

“The startups need to be mentored, any start-ups without mentorship cannot be successful on the platter of gold, you need to be patient, and consistent.

“You have to be steadfast and partake in critical thinking as well as be analytic. The main challenge is not about funding, but mentoring. That is why our focus now is on mentoring our young start-ups.

“We are also providing the enabling environment for them to thrive, so you discover that in the proposed finance bill 2020, there is reduction in small and medium enterprises taxes.

“If we are able to implement this plan in the next five years, our start-ups are going to be celebrated not only in Nigeria, but globally,” headed.

Pantami recalled that Amazon became a global brand with huge profit today after several years of trials and failures, expressing confidence that Nigeria start-ups which attracted the 50 million dollars investments gives hope that the future would be bright for the country.

Mr Kashifu Inuwa, Director-General of the National Information Technology Development Agency(NITDA), in his address, said about ten Nigerian start-ups would be showcasing their innovations in Dubai this year.

He reiterated the commitment of NITDA to continue encouraging all Nigerians to invest and participate in efforts that would boost innovation and digital economy in the country.

GITEX is the biggest annual consumer computer and electronics trade show, exhibition, and conference in the Middle East and East Africa that takes place in Dubai, United Arab Emirates at the Dubai World Trade Centre.

The GITEX 2020 started on Dec. 6 and is expected to end on Dec. 10.

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