•Assures tech-savvy Nigerians of funds, tax reliefs
•Nigeria produces four out of seven unicorns in Africa valued at $7.5bn
•ICT revenue generation increased from $51bn in 2019 to $408bn in 2022, says Pantami
Deji Elumoye in Abuja
President Muhammadu Buhari has inaugurated a 14-member National Council for Digital Innovation and Entrepreneurship with the mandate to guide the implementation of the Nigeria Startup Act (NSA) 2022.
Speaking yesterday, at the inauguration of the Council chaired by him, the President directed the Secretariat, the National Information Technology Development Agency (NITDA), to ensure faithful implementation of the Act, which provides incentives and support for start-ups, including tax breaks and access to funding.
The inauguration at the Council Chambers of the State House, Abuja, preceded the Federal Executive Council (FEC) weekly meeting and had members of the Digital Innovation Council in attendance.
Other members of the Council included Vice President as Vice Chairman, Minister of Communication and Digital Economy, who shall preside over the council in the absence of the chairman and vice chairman.
Other members are Ministers of finance, budget and national planning; industry, trade and investment; science, technology and innovation; Governor of Central Bank of Nigeria, four representatives of the startups consultative forum and one representative each of the Nigerian Computer Society, and the Computer Registration Council of Nigeria and the Director General of the Nigerian Information Technology Development Agency (NITDA) as Secretary of the council.
The president noted that Nigeria had been at the forefront of the remarkable growth of startups in Africa, with Nigerian start-ups raising over $4 billion between 2019 and 2022.
According to him: ‘‘It is worth noting the remarkable growth of start-ups worldwide, with over US$400 billion of venture funding accessed in 2022.
‘‘This growth was fuelled by a surge in demand for digital services as people worldwide turned to technology to stay connected, work remotely, and access essential goods and services largely due to the COVID-19 pandemic.
‘‘In Africa, the startup ecosystem has also been growing at a remarkable pace. In 2022, African startups raised a record of $5.4 billion in funding.”
Buhari, therefore, charged members of the Council to harness the potential of Nigeria’s young and innovative population, who have demonstrated their ingenuity, creativity, and entrepreneurial spirit in creating innovative solutions to the challenges of the nation and the continent.
‘‘With this inauguration, which serves as our first meeting, I hereby direct the Minister of Communications and Digital Economy, Professor Isa Ali Ibrahim (Pantami), to convene another meeting of the Council in May 2023 to make further progress on the implementation of the Act.
‘‘I congratulate the members of the National Council for Digital Innovation and Entrepreneurship on their assignment and wish them a successful and productive engagement in harnessing our youth talents and uplifting our country’s economy to new heights,’’ he said.
Describing the Startup Act 2022 as a testament to the vision and commitment of his administration to harness the potential of Nigeria’s young and innovative population, the President recalled that it was developed in collaboration with his office, the Federal Ministry of Communications and Digital Economy, with the support of the Tech Ecosystem.
Buhari explained that the Act, which became law after its approval by the Federal Executive Council on 15th December 2021 and the Presidential assent on 19th October, 2022, provides incentives and support for start-ups, such as tax breaks, access to funding, ease of doing business, intellectual property protection, and participation in public procurement.
He particularly commended efforts of Pantami and the Chief of Staff, Prof. Ibrahim Gambari, for the achievement.
The president acknowledged that as Nigeria aims to become a global talent factory through the implementation of the Startup Act 2022, its startup ecosystem still faces significant challenges, such as access to funding, support infrastructure, and skilled talent.
He said: ‘‘These remain major barriers to the growth of the ecosystem, particularly for early-stage start-ups.
‘‘The provisions of the Nigeria Startup Act 2022 represent an important step towards addressing these challenges and promoting the growth of a more vibrant and inclusive startup ecosystem in Nigeria.
‘‘Furthermore, implementation of the Act will lead to consolidation and further development of the gains recorded by Nigeria’s digital economy, in the last four years, in the areas of contribution to GDP and increased revenue generation, among others.”
Buhari stressed that the Council would serve a critical governance structure in the implementation of the Act, which will ensure that government agencies, entrepreneurs, investors, and support organisations collaborate with the startup ecosystem to achieve the goals of promoting the growth of a vibrant and sustainable startup ecosystem.
‘‘I had earlier directed the Secretariat, the National Information Technology Development Agency to commence the execution of the implementation plan it developed.
‘‘One of the important aspects of the implementation plan is the development of the Startup Portal, which will serve as a platform that will drive the implementation of the NSA 2022 and collaboration between all stakeholders,’’ he said.
Earlier in his remarks, Pantami, said the inauguration of the council would support the administration to consolidate the gains and achievements recorded so far in the digital economy sector.
He recalled that the administration has set three unprecedented records with regards to ICT contribution to the GDP. He noted that in the first quarter of 2020, ICT alone without digital services, contributed 14.07 percent to the nation’s GDP and in the second quarter of 2021, ICT alone without digital services contributed 17.92 percent, while in the second quarter of 2022, the sector also contributed 18.44 percent to the nation’s GDP, describing the feat unprecedented.
He said: “Year in year out, this administration has been setting a new world record when it comes to ICT contribution to the GDP.”
Pantami said, a recent evaluation conducted by OSGF, FCDO and KPMG, indicated that the current administration under Buhari increased revenue generation in the ICT sector from $51 billion in 2019 to $408 billion in 2022, an increase of 594 per cent.
