7 suggestions for Nigeria’s new Minister of Communications and Digital Economy

Last week, President Bola Ahmed Tinubu announced the appointment of Bosun Tijani as the Communications, Innovation and Digital Economy minister.

Bosun Tijani, who has contributed to the growth of the Nigerian tech ecosystem, particularly through his activities at CCHub, will be expected to deliver the next level of innovation that the ecosystem requires

The tech ecosystem can potentially transform Nigeria’s economy and help the nation turn its gaze away from its crude oil deposits. For over 10 years, ICT has consistently contributed more than 10 per cent of Nigeria’s Gross Domestic Product (GDP) – the telecom sector alone contributed 12.45 per cent to GDP as of the fourth quarter of 2020.

The ICT sector contributed 15.35% to the country’s GDP in Q3 2022 (a growth from 14.20% to 15.35%), surpassing oil. As commendable as this is, it is a significant drop from the 18.44% recorded in Q2 2022.

Note, ICT comprises the four activities of telecommunications and information services; publishing; motion picture, sound recording and music production and broadcasting.

We believe that the new Minister will help the administration of President Bola Ahmed Tinubu (PBAT) inch closer to his goal of growing Nigeria’s economy by 6% year on year if he develops the tech ecosystem using these 7 policy ideas:

1. Policy development

Overall, adequate support from the government should translate into fair policies and not regulations that seek to discourage growth. Policy development is the first and most crucial item to consider.

Here are the suggested priority areas.

Engagement: Fostering collaborations between the government, private sector, academia, and international organizations is vital to creating synergies and leveraging resources for the tech ecosystem in Nigeria to achieve its full potential.

The minister needs to be intentional about establishing platforms for regular dialogue, such as public-private partnership committees or advisory boards. This will help facilitate effective collaboration and help align policies with the needs of the tech ecosystem.

For example, the Lagos State Government, the Nigerian Economic Summit Group (NESG), and the Technology for Social Change and Development Initiative (Tech4Dev) organised a State-Level Inclusive Digital Economy Stakeholder Engagement Session with public and private stakeholders in the tech space in the state. The session was well attended and provided the representatives of the state insights on several grey area issues.

The minister can initiate a similar consultative conversation characterised by openness and quality representation by non-partisan players in the space annually.

Regulation: The government needs to review existing problematic regulations. Here are some suggestions:

• For starters, the tech community has asked for the controversial National Information Technology Development Agency (NITDA) bill to be revised to eliminate the problematic parts.
• Similarly, telecommunication companies have voiced their concerns over the potential duplication of regulatory functions, the bigger issue perhaps is the proposed levy on companies and enterprises within the digital economy.
• The complex license approval process should also be reviewed to make it easier for startups to gain the right to operate.
• The fees charged for licenses by the NCC and the CBN can be revised specifically for Nigerian startups to make it possible for more fintech and telco service providers.
• PBAT has to review regulations that were aimed at creating some stifling monopolies. For example, the Ministry of Communications and Digital Economy and the National Identity Management Commission (NIMC) recently narrowed the number of licensed NIN verification service providers.

2. Funding

The boom in the tech space in Africa, particularly Nigeria, has been significantly driven by foreign investors. According to data from Africa: The Big Deal, a funding tracker, Nigerian startups raised over $1.2 billion in 2022.

However, a large chunk of the funding for startups in Nigeria and Africa comes from foreign investors who dominate the ecosystem, with little presence of local VCs. Experts have stressed the need for more inflow of local capital in the Nigerian tech ecosystem.

As Abasiama Idaresit, CEO & Founder of the Wild Fusion Group, puts it:

“If the ecosystem is funded wholly by foreign capital, local investors will miss a great opportunity to sit on the table of the future economy”.

But, following the FOMO caused by Paystack’s $200 million acquisition in 2020, there’s been a massive improvement in the participation of local investors. Like everything else in Nigeria, it is evident that the government needs to stimulate the wave of local investments that will accelerate the growth of the ecosystem.

A government-led investment initiative will help achieve the following:

1. It will help prevent talent and capital flight
2. It will help the country for maximum returns
3. It will encourage other individuals and VCs to make significant investments in Nigerian startups
4. Enable the Nigerian government back access and control of strategic tech platforms for economic and security exigencies.

I will suggest that the investment fund gives special consideration to the following sub-sectors:

1. Fintech (payment, remittances, switch and card issuance)
2. Edutech
3. Healtech
4. Logistics
5. Identity Verification and addressing 6. Hardware manufacturing
6. Agritech
7. Greentech
8. Communications technology

Similarly, encouraging collaboration between financial institutions and angel investors can create a robust investment ecosystem for startups, providing them with the necessary funding and resources to scale their operations.

This includes providing tax incentives for startups, creating intellectual property protection frameworks, and implementing business-friendly regulations.

Honourable Minister Bosun Tijani can also push for the Government to introduce public procurement policies that prioritize working with local startups, thus providing them with valuable opportunities and boosting their growth.

Most importantly, using the Nigeria Sovereign Investment Authority, the government of President Bola Tinubu needs to strategically invest in startups that have the potential for exponential growth, that will have access to the crucial data of the citizens and will be foundational to how people live, work and relax. And, the Minister of Communications and Technology has to drive this agenda.

This way, the government will hold a pivotal position in the growth of its economy, will benefit from the growth of these startups and will be able to intervene when economic and security exigencies arise in the future.

3. Broadband

One of the many agenda players in the tech ecosystem can ask Tinubu to focus on is improving the digital infrastructure in Nigeria. Increasing broadband penetration should be the place to start.

According to the latest figures released by the Nigeria Communications Commission (NCC), Nigeria’s broadband penetration has reached 48% from 41% in January 2022. According to Techloy analysis, the growth rate has been around 0.5% since June 2022.

At this rate, Nigeria would need 45 (the end of the tenure of this administration) more to achieve its target of reaching a national broadband penetration of 70%.

The successful implementation of the NCC’s national fibre project by licensed Infrastructure Companies (InfraCos) is crucial to ensuring that the 2024 penetration target of 65% is achieved.

Since 2015, a total of six InfraCos have been licensed by the commission to roll out bulk broadband infrastructure in different regions across the country. The licensed InfraCos are MainOne (Lagos), Zinox Technology Limited (South-East), Fleek Networks Limited (North-West), Brinks Integrated Solutions Limited (North-East), O’dua InfraCo Resources Limited (South-West) and Reana Consortium Limited (South-South).

However, there are more inherent broadband challenges that will hinder the achievement of the country’s broadband target. The exorbitant Right of Way (RoW) charges from state governments, power outages, vandalism and theft may yet slow down the plan to boost broadband coverage in Nigeria.

If these existential problems are not resolved, especially the RoW issue which has long been faced by telecom operators, then InfraCos would not be able to execute fibre-laying activities in the scope necessary to drive significant broadband expansion.

The Honourable Minister, Bosun Tijani needs to revisit National Fibre Project to determine the exact bottlenecks so he can invite the stakeholders (NCC, ministries of Works and Ministry of Technology, State Governments, investors and fibre companies) for a roundtable discussion on the way forward.

4. International Collaborations

With a properly executed intervention programme, Nigerian tech startups will undoubtedly prosper, make a significant impact on the economy as well as consider continental and global expansion drives.

In anticipation of this reality, Minister Tijani needs to proactively engage in strategic diplomatic relations to smoothen the process for young native founders.

Here are some things to consider:

Partnerships: Forging partnerships with global tech hubs, universities, and research institutions is crucial for Nigeria’s tech ecosystem to thrive. Collaborative initiatives can include knowledge transfer programs, talent exchange programs, joint research and development projects, and foreign investment facilitation.

Immigration: The government can consider a special recommendation programme for tech founders that will enable countries such as the UK, Canada and the United States to give accelerated visas to founders that have expansion plans.

5. Education

Curriculum development: There is an urgent need to revamp the education curriculum to prioritize digital skills and entrepreneurship is essential for preparing students for the demands of the tech-driven economy.

The government needs to foster collaboration between Edutech startups and industry experts to develop relevant and up-to-date curriculum content.

The end product of this process should be an introduction of relevant courses such as coding, data analytics, digital marketing, and entrepreneurship courses at various educational levels to equip the workforce with the necessary skills and mindset for innovation and entrepreneurship.

Tech hubs: The establishment of innovation hubs and incubators across the country are vital for supporting startups. These hubs provide a nurturing environment where startups can access mentorship, resources, and a supportive ecosystem.

The government of President Bola Tinubu need to collaborate with universities, research in- institutions, and private players to establish tech hubs around the country as well as revitalise existing ones to enhance the quality of support provided to startups.

Talent development: To build a pipeline of engineers that Nigeria needs to become and remain an African tech giant, the government of President Tinubu needs to implement training initiatives, boot camps, and vocational programmes that will enhance the digital skills of the country’s youthful population.

In partnership with foreign and indigenous private training companies, the Ministry can execute programmes that will provide hands-on training in areas such as software development, cybersecurity, data analysis, and digital literacy.

These Public-private partnership arrangements will help facilitate an efficient execution and scale.

6. Blockchain

Blockchain and cryptocurrency may have lost the “hottest technology” tag to artificial intelligence this year, but both innovations have significant advantages which Nigeria, through Mr Tijani, can key into for economic growth and digital transformation.

Although a national blockchain programme has recently been adopted, ensuring that it works as promised should be a major priority. The Ministry should encourage startup founders to build solutions that are based on blockchain technology.

They should be allowed to integrate with existing solutions in a sandbox environment.

Unban crypto transactions: President Tinubu’s administration needs to reverse the outright ban on crypto to monitor by the CBN. Its adoption and flow will allow the government to efficiently task its gains and advise citizens on the negative potential.

In any case, the technology will thrive with or without the support of the government. But, it is better to position for gain.

7. Community

With the tech community, the Nigerian government is not popular. This needs to change for the ecosystem to attain its prosperous potential.

The government of President Tinubu needs to take deliberate steps to right the wrongs of the previous administration by doing the following:

Strategic events: The Ministry of Tech, through its and its parastatals can organize industry events, conferences, and workshops for stakeholders. This is essential for facilitating networking, knowledge exchange, and collaboration among startups, and familiarisation with industry experts, and policymakers.

These events can also serve as platforms for showcasing innovative ideas, fostering partnerships, and connecting startups with potential investors and customers.
The government can also support events organised by private companies and groups for proper planning, pose neutrality and ensure extensive participation by stakeholders who wish to hold a politically neutral stance.

Thankfully, the new minister is well vast in this regard. So, we will surely see a difference.

ENDSARS: There’s also the long-standing issue of police brutality which has affected many Nigerians, but could potentially stunt the digital economy’s growth if not properly addressed.

There are quite a lot of unpleasant stories of young citizens’ encounters with Nigerian police officers. In many instances, hundreds of thousands of naira in bribes were taken and in many cases, lives were lost.

If the country must tap into the potential of digital transformation, then the police should undergo sensitizations on how to deal with the youth population demography that is championing the tech revolution in the country.

And, the government has to ensure that the reforms and visible and violators are punished. This way, it will truly gain the trust of the industry players.

Conclusion

By adopting the steps outlined in this comprehensive roadmap, President Tinubu’s administration can unlock Nigeria’s potential as a global tech powerhouse.

Creating an enabling environment for start-ups, building strong collaborative networks, promoting digital skills and education, and implementing impactful policies and regulatory frameworks are the building blocks for Nigeria’s technological transformation.

The time is now!