The Founder and Chief Executive Officer of Trove, a micro-investing platform, Oluwatomi Solanke, in this exclusive interview with Nairametrics speaks on the recently signed Nigeria Startup Act and how it will impact the startup ecosystem and how Nigeria can leverage ICT to grow its economy.
1. What is your assessment of the startup ecosystem in Nigeria presently?
Nigeria has one of the most vibrant tech ecosystems in the world and is the pioneering startup ecosystem on the continent. More recently I saw a statistic somewhere stating that 383 Nigerian tech startups raised over $2 billion over the past seven years. Also, Nigeria has accounted for around one-third of the continent’s funded startups so far this year. However the Nigerian tech ecosystem pales in comparison to other ecosystems in developed markets due to several reasons, one being Government policies, the second being education amongst a number of other things. The ecosystem however continues to grow and achieve great success due to the doggedness of Nigerians, the population and also the entrepreneurial spirit that lives in Nigerians. I think it is early days and Nigeria is uniquely positioned to champion a lot of the innovation that we would continue to see across the continent.
2. With the signing of the Nigeria Startup Bill into law, what do you think the future of startups in Nigeria will look like?
I think the future is quite promising. I think with the bill we would be able to support and sustain high-growth businesses and also help accelerate local economic growth. All these would cascade into entrepreneurs setting up new startups in an unprecedented manner. I also think it would position Nigeria as a destination for starting and building companies. It would position startups to attract local and foreign investment primarily due to the perceived ease of doing business in the Nigerian tech ecosystem.
3. Until now, startups in Nigeria have been doing well, raking in millions of dollars in investments every year, what difference will the Startup Act make?
This Startup Bill is probably one of the best things I have seen proposed in recent times. Looking at the scope, and incentives tied to the bill, I cannot do any other thing but smile. If executed properly, it could completely change the trajectory of the ecosystem. If it is enforced properly I think we would continue to see a lot more businesses set up and flourish. The private sector is the engine of growth for most developed countries and successful businesses drive growth, create jobs and pay the taxes that support infrastructural development amongst other things. With the state of unemployment across Africa, it has become extremely critical to incentivize creativity, innovation and enterprise creation as this would help grow the economy and lift people out of poverty. Great part is that the startup bill helps with all of the above.
4. The ICT sector has become a major contributor to the Nation’s GDP with an increase in contributions quarter on quarter, what do you think is going well for this sector?
I think the biggest and probably the best thing about Nigeria is its people. We are a resilient, enterprising and creative population and this naturally reflects in the quality of work we do as a people. With the proliferation of mobile technology, it was only natural that Nigerians would utilize that opportunity to create a lot of greatness. It also helps that 70% of the population of over 200 million people are under the age of 30.
5. What would you suggest the government should do to make ICT replace Oil as the major source of revenue for the country?
Of the 10 largest companies in the world, only Saudi Aramco is linked to oil production. 8 of the top 10 companies are all technology businesses in some shape or form. With that said, I think the Government should continue to incentivize building within the ICT sector. Nigeria is one of Africa’s largest ICT markets in terms of its share of telecom subscribers and internet users, but unfortunately, this has not translated into much over the years. To correct some of the mistakes we have made over the years , I think there should be a push for STEM in schools and that it should be accessible for all. This could help solve the mismatch between academia and industry, helping solve the shortage of workers within the sector.
The limited power supply also threatens the development of the ICT sectors, particularly the telecoms and should be fixed as soon as possible. I.T. services and last-mile connectivity, should also be more widespread and also priced in such a manner that the common man can afford.
6. Trove as an investment company is encouraging many Nigerians to invest through its app, which makes investing easy and seamless, how are Nigerians taking up this opportunity?
Nigerians are taking their future into their hands. With double-digit inflation, currency devaluation and harsh economic realities, it has become so apparent that additional income streams are more of a necessity than a luxury. Nigerians now realize that irrespective of income levels it is important to create a nest egg and compound their wealth.
7. What do you see as the major challenge confronting the startup ecosystem in Nigeria and how can it be addressed?
I think the current version of the bill currently signed into law by the president addresses most of what we’ve clamored for over the years. I would however love to see how this current version of the bill is enforced