The Federal Government has launched the Technology Export and Digital Trade Desk aimed at attracting more investments into the Nigerian tech sector and pushing annual funding for the country’s startups up to $5 billion.
The Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, who announced this on Monday, said the initiative was launched in collaboration with the Federal Ministry of Industry, Trade and Investment.
According to the Minister, this marked a significant milestone in the Ministry’s efforts to strengthen the contribution of ICT to Nigeria’s Economy.
Promoting Nigerian technology export
Tijani noted that trade, which is the 5th Pillar of the Ministry’s strategic blueprint, represents an opportunity to promote Nigerian technology export and the launch of the Trade Desk provides a strong foundation to offer bespoke support to local technology companies, enabling them to access and compete in markets across Africa and around the world.
“With a bold vision, the initiative seeks to increase the technology sector’s contribution to Nigeria’s GDP from the current 14–18% to 21% within the next three years.
“Additionally, the Desk aims to amplify annual funding for Nigerian startups, scaling up from $1 billion to $5 billion over the same period, thereby fostering innovation, entrepreneurship, and global competitiveness,” he said.
Nigeria’s position in ECI
The Minister added that the establishment of the Trade Desk which would provide a comprehensive suite of programs, partnerships, and policy-driven interventions, also aligns with Nigeria’s ambition to improve its position in the Economic Complexity Index (ECI), showcasing the country’s commitment to diversifying its trade and advancing its position in the global digital economy.
- The ECI is a ranking system that assesses a country’s productive knowledge and the complexity and diversity of its exports.
- Countries with a high ECI have a range of specialized capabilities and can produce a wide variety of complex products.
- Nigeria’s ECI in 2022 was -1.67, placing it in 127th rank out of 133 countries.
Tijani said the efforts also form a critical component of President Bola Tinubu’s overarching goal of achieving a $1 trillion Nigerian economy, underpinned by innovation, investment, and international trade.
What you should know
Nigeria, once the leading destination for startups funding, slipped to the second position in 2023 as Kenya overtook the country as the top destination for startups funding.
- In 2024, available records show that the country’s startups managed to raise slightly over $400 million, but still far behind Kenya, which attracted $638 million.
- Nigeria’s startup funding figure for 2024 was boosted by two companies that were able to secure mega deals.
- The deals were Moove’s $110 million Series B round led by Uber and Moniepoint’s $110 million Series C round.
