Nigeria's tech sector could attract $10bn investment yearly- Bosun Tijani – Technext
The Nigerian tech sector is one of the fastest growing in Africa. Currently, the sector is one of the top-performing sectors and a major contributor to Nigeria’s gross domestic product (GDP).
In 2022, the technology startup ecosystem is said to have attracted about $1 billion to Nigeria and can further increase that amount in the coming years. According to Dr Bosun Tijani, the founder of CcHub, the technology ecosystem is fast becoming big and currently can attract over $10 billion in funding.
“Going by the trajectory of what we have seen lately, Nigeria is a country that can be attracting $10 billion to technology companies almost on a yearly basis. For this to happen, we need to plug into innovation communities around.”
Dr Bosun Tijani disclosed this when he was featured on a television programme to intimate the public about Pan African Youth Innovation Forum 2023, with the theme: “Unleashing Africa’s Innovative Future with Bill Gates”. His claim could be considered really ambitious considering that African tech startups raised a combined $4.8 billion in 2022, across 1,000 deals.
The founder said that the nation has witnessed amazing growth in regard to its potential and capacity to lure investors, in contrast to the past when it was incredibly difficult. He said this while sharing his experiences from the past, specifically about his company, CcHub.
“When we started CcHub about 14 years ago, it was difficult for folks to actually get funded. People struggled to find $5000 to back their businesses. But it was then we reached out to a billionaire, who created a fund that is now funding firms across Africa.”
“As of last year, Nigeria alone raised over $1 billion in funding technology businesses in the country. But about six years ago, we were struggling seriously to get about $200 million into this economy. This is not from the government and I don’t think it is necessarily the government’s role to fund businesses. Government is to create an enabling environment for investors and investments to come in,” he said.
Tijani said there has been significant progress over the years, but lots of work still needs to be done. He stressed that there are so many things that still need to be done to inspire confidence and drive much more money into the ecosystem.
“When we started CcHub 14 years back, we were the first in the country and today I think Nigeria has over 150 technology hubs spread across the country, doing amazing things, developing solutions and solving problems. It is about being part of the community because that is where things happen.
With that opportunity, one can gain access to resources, know how to build businesses, how to scale them and make them sustainable thereafter. The most important thing is how you eventually gained access to funding,” he stated.
Read also: ICT sector contributed N3.1 trillion to Nigeria’s GDP in Q1 2023 representing 17.47%
Speaking on the Startup Act, the CcHub boss said it shows that something is happening in the country’s technology ecosystem. He, however, said there is still the need to further create the right policies and regulations to back it up because innovation is expensive and intentional.
According to him, the normal law of doing business doesn’t support innovation, explaining that innovation is not entrepreneurship, “but innovation cannot be completed without innovation. So, the laws that will drive innovation have to be intentional, which is what the Startup Act is all about”, he said.
“In more advanced countries, they have what is called the National Innovation System, the Startup Act needs to be in this regard to be able to strengthen innovation across the board, where there are vast opportunities not just for startups but for large corporate, micro-businesses, been also able to innovate. This is because when more people innovate, we are going to see more people solve our problems.”
In regards to the programme, where Mr Gates will speak about the technology ecosystem, Tijani stated that the forum would be a gathering of some of the most brilliant individuals on the continent, particularly those based in Nigeria. It would be presided over by the CEO of Microsoft, who is incredibly inspirational and has made a commitment to the advancement of others.
He said the idea behind the forum is to bring young people together, to innovate and help develop solutions that can help solve some of the world’s problems through science and technology.
On his part, the MBA Director of Lagos Business School (LBS), Chinedum Ewuzie, said the school is partnering CcHub on the forum because a major function of the LBS is to create programmes and also platforms.
Ewuzie said the forum is a platform for likes minds to come discuss issues around the globe. He said the expected outcome includes knowledge transfer.
“We all know that the industry has grown, and so also is science and technology. It has driven innovation in Nigeria and across Africa. The question now becomes how do you turn these things into sustainable businesses and that is the question we are trying to answer by bringing people together to discuss knowledge, investments and partnership. How you can build businesses, and get funding. It is basically how to build a sustainable business.”
Speaking on the Startup Act, Ewuzie said the law has been signed and it is hoped that it will improve access to funding and attract more players in the industry.
“One key thing for the industry is actually the need to have a balanced ecosystem of innovators, investors and governments. There is also the importance of guidance in business decision-making,” he stated.
On the outcome of the conference, he said by design, the programme is hybrid, which will be broadcasted across the whole world. According to him, there are other opportunities including investments, because so many people are coming together to discuss issues.
According to him, the challenges in Nigeria are not unique to the country, but the fact remains that the industry is growing, which is an opportunity for youths to come and learn new things.
Read also: CcHub CEO, Bosun Tijani advises young Nigerian developers against multiple jobs
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