The Director General of NITDA has Sheds Light on Nigeria’s Initiatives in Fostering the Startup Ecosystem in the country.
Dr Usman Gambo Abdullahi, Director of Information Technology Infrastructure Solutions, representing the Director General of the National Information Technology Development Agency (NITDA), unveiled this invite to a keynote speech delivered at this year’s ‘The Next Web’ (TNW) Conference held from 15th to 16th June 2023, in Amsterdam.
The speech focused on Nigeria’s initiatives aimed at fostering the growth and development of the country’s startup ecosystem.
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Establishment of Startup Investment Seed Fund
One of the key highlights of the speech was the announcement of the establishment of a Startup Investment Seed Fund. The fund, to be managed by the Nigeria Sovereign Investment Authority (NSIA), aims to support early-stage startups, hubs, and entities that contribute to the startup ecosystem.
A minimum annual funding of N10,000,000,000.00 (Ten Billion Naira) will be allocated to finance labelled startups through seed funds, grants, or loans.
Nigeria’s Innovative Approach to the Startup Act
During the Deep Tech Roundtable, held as part of ‘The Assembly’ at TNW, Nigeria’s innovative approach to developing the Nigeria Startup Act (NSA) received accolades from global technology ecosystem stakeholders. Mallam Kashifu Inuwa Abdullahi, CCIE, the Director General/CEO of NITDA, participated as a Special Guest in several roundtable sessions, including ‘The Assembly’ and the Startup Genome Ecosystem Leadership Forum.
Inuwa highlighted that the Nigeria Startup Act, a result of collaboration among ecosystem stakeholders, exemplifies Nigeria’s commitment to Developmental Regulation, one of the pillars of the National Digital Economy Policy and Strategy for a Digital Nigeria (NDEPS).
Objectives and Structure of the Nigeria Startup Act
The Nigeria Startup Act aims to create an enabling environment for the establishment, development, and operation of startups in Nigeria. It provides a legal and institutional framework for startup growth, nurtures technology-related talent, and positions Nigeria’s startup ecosystem as the leading digital technology centre in Africa.
The Act consists of ten parts organized around five drivers: collaboration, engagement, incentives, linkages, and support. Notably, it establishes the National Council for Digital Innovation and Entrepreneurship, chaired by the President, with the Director General of NITDA serving as Secretary.
The Council includes representatives from the Federal Executive arm of Government, the Nigeria Computer Society, the Computer Professionals Registration Council of Nigeria, and the Startup Consultative Forum. The Council’s responsibilities include monitoring and evaluating regulatory frameworks, formulating policy guidelines, overseeing law harmonization, and driving startup development in Nigeria.
Startup Support and Engagement Portal
Inuwa also announced the launch of a Startup Support and Engagement Portal, designed as a centralized platform for startups to register with all relevant regulatory agencies of the government. This initiative aims to streamline the engagement process and reduce time and costs associated with individual interactions with government agencies. The portal aligns with the objectives of the Presidential Enabling Business Environment Council (PEBEC) to enhance the ease of doing business within the tech ecosystem.
The Director General expressed optimism regarding the Nigeria Startup Act’s potential to shape a prosperous future for startups in Nigeria. He called on stakeholders to support the Secretariat in maximizing the Act’s benefits. Attendees at the conference praised Nigeria’s approach, considering it an excellent example of co-created regulation that could inspire similar initiatives worldwide.
Global Entrepreneurship Network’s Perspective
Matt Smith, Director of Policy and Research at the Global Entrepreneurship Network (GEN), commended Nigeria’s innovative approach.
During his speech, he expressed his deep interest in the remarkable progress witnessed in Nigeria’s startup ecosystem.
Smith noted that governments often face challenges when attempting to empower entrepreneurs as they grapple with the complexities of implementing a wide range of reforms, policies, and programs that span multiple ministerial and departmental domains.
He emphasized that without centralized coordination, these reforms can easily stagnate due to limited legislative capacity, disagreements between responsible departments, or the emergence of redundant and competing initiatives.
However, Smith commended Nigeria for its innovative approach in crafting the Startup Act, which effectively mitigates these challenges. He firmly believes that this approach not only holds great promise for Nigeria’s entrepreneurship ecosystem but also serves as an inspiration for similar startup acts being considered worldwide.
