Nigeria to invest $5 billion in tech startups; What to expect?

Nigeria, a country in West Africa, aims to invest $5 billion in tech startups for the next four years. The Nigerian authorities have developed strategies for $5 billion in annual tech startup investments in order to help people working in the tech sector. 

Bosun Tijani, the Nigerian minister of Communications, Innovation and Digital Economy, announced the government plan in a report titled “Accelerating our Collective Prosperity through Technical Efficiency: A Strategic Plan for the Federal Ministry of Communications, Innovation & Digital Economy.”

Under the plan, the Nigerian government will help Nigerian tech startups raise $5 billion yearly through funding by the year 2027.

What to expect?

The Nigerian government seeks to help tech startups. Bosun Tijani has highlighted the importance of innovation, entrepreneurship, and access to financing for tech startups across the country. 

The Nigerian minister said, “We intend to create an environment for startups to raise the funding they require to thrive locally and promote the domiciliation of startups within our nation.”

Nigerian tech startups can expect a rise in funding. The Nigerian government will also launch one ministry-led Public-Private Partnership (PPP) pilot programme per sector by 2027 to help startups across the country.

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Nigerian startups raise $2.1 billion in 7 years

Nigerian startups have raised $2,068,709,445 in funding between January 2015 and August 2022. In ‘African Tech Startups Funding Report,’ it was revealed that total investments in Nigerian startups increased more than four-fold between 2020 and 2022.

Nigeria launches $618 million tech fund for investors

Earlier this year, Nigeria launched a $618 million tech fund for young investors. The initiative was launched to support tech and creative sectors across the country. 

Chipper Cash, a cross border payments startup in Nigeria, had $1 million in SVB. African Development Bank pledged to put $170 million, $116 million of investment will come from Agence Francaise de Developpement, and $70 million of investment will come from Islamic Development Bank.

Nigeria has the largest number of tech startups in Africa.