Nigeria has outlined an ambitious goal to support startups in raising a cumulative annual funding of $5 billion by 2027.
Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, revealed this in a strategic plan document titled ‘Accelerating our Collective Prosperity through Technical Efficiency: A Strategic Plan for the Federal Ministry of Communications, Innovation & Digital Economy.’
The ministry’s primary focus is on fostering the growth and sustainability of startups, particularly those developing innovative solutions for critical sectors of the economy.
They aim to increase local access to patient capital, creating a favorable environment for startups to thrive and encouraging them to remain within the country.
To gauge the success of this plan, the ministry aims to raise the annual capital raised by Nigerian tech startups from approximately $1 billion in 2022 to $5 billion by 2027, a 50% year-on-year increase.
Despite a funding shortage, Nigerian startups managed to raise $1.2 billion in 2022, as reported by Africa The Big Deal, while African startups collectively raised $5.4 billion according to Briter Bridges.
Additionally, the ministry plans to establish an active sandbox environment to empower innovators and entrepreneurs to develop unique solutions for sectors with limited exposure to technological innovation.
They also aspire to increase the presence of local technology startups in the country from less than 1% to 25% by 2027, boosting their contributions to the economy.
Dr. Tijani emphasized the transformative power of digital technology and innovation, highlighting the potential for economic progress and global relevance.
He also stressed the importance of Artificial Intelligence (AI) in the country’s future, with plans to position Nigeria as a global leader in AI model training and inclusivity in AI dataset development. Furthermore, the ministry aims to create over 50,000 jobs in the AI industry in the coming years.