The Federal Government through the Ministry of Industry, Trade, and Investment, has launched a new initiative to make it easy for Nigerian digital service providers to expand across Africa.
To that end, the Ministry is calling on all digital services providers in Nigeria to participate in its official survey, which allows them to provide information about their business and the African countries they would like to expand to.
The Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, who announced this on Monday, said through this initiative, Nigeria is pioneering a straightforward way to map digital services that will open doors for the country’s tech businesses across the continent.
Why it matters
According to the Minister, when Nigerian digital businesses try to enter or access other African markets, they often face challenges and confusion about how their services should be registered, what rules apply, and which agencies regulate them.
“This is because, unlike physical goods and traditional services, digital services don’t fit neatly into existing trade categories.
“Nigeria is, therefore, championing digital trade services and is pioneering a simple, clear framework that both businesses and governments can understand,” she stated.
“It’s like creating a common language that helps everyone to get on the same page about what these services are and how they should be treated. The transformative benefits for Nigeria include unlocking new markets,” the Minister added.
Facilitating trade negotiation
Oduwole noted that by identifying exactly which African countries Nigerian businesses want to enter, the Ministry can focus its trade negotiations on opening those specific markets, creating a digital services repository.
- According to her, through this initiative, Nigeria will—for the first time—have a comprehensive database of its digital service providers, their expansion plans, and the barriers they face.
- She said this would strengthen Nigeria’s digital leadership and position the country “as a forward-thinking leader in Africa’s digital economy”, shaping the rules rather than just following them.
What you should know
Despite the challenges, a few Nigerian tech companies have expanded their presence in other African countries.
- Prominent examples include Flutterwave, a fintech company offering payment solutions across the continent. Flutterwave currently operates in countries such as Ghana, Kenya, South Africa, Uganda, and Tanzania, among others.
- Another Nigerian fintech, Paystack, has also expanded to other African countries like Ghana, South Africa, and Kenya.
- Interswitch, a leading fintech company, also has a presence in various key cities across Africa, focusing on digital payments and commerce.
However, several other Nigerian tech companies have expressed frustration over their moves to secure licences in other African countries.
