Digital Connectivity and global positioning of Nigeria’s tech startup ecosystem

*Dr. ’Bosun Tijani, Minister for Communications, Innovation and Digital Economy, discloses the current drive to boost connectivity with a public-private partnership model will help to plug an existing non-consumption gap by connecting over 200,000 educational, healthcare and social institutions, to ensure 33 million more Nigerian telecoms consumers enjoy the benefits of Internet connectivity

Gbenga Kayode | ConsumerConnect

In a bid to hoist its flag in the global technology hub for visibility, the Nigerian Government has activated a Special Purpose Vehicle (SPV) to build the additional fibre optic coverage required to take the West African country’s connectivity backbone to a minimum of 125,000km, from the current coverage of about 35,000km.

ConsumerConnect reports the Federal Government noted that upon delivery of the ambitious digital connectivity project, Nigeria’s will become Africa’s 3rd longest terrestrial fibre optic backbone, after Egypt and South Africa.

Dr. ’Bosun Tijani, Honourable Minister for Communications, Innovation and Digital Economy, who disclosed this development said following a recent meeting of the Federal Executive Council (FEC), in Abuja, FCT, the Ministry secured two approvals that offer significant opportunities for Nigerian consumers in general, but also specifically for the country’s digital startup ecosystem.

Tijani, in a blog note, also revealed the first of the two approvals is the launch of a Special Purpose Vehicle (SPV) that would support the delivery of 90,000km additional fibre optic cables to complement the existing connectivity infrastructure, and deliver “a stronger national backbone for universal access to the Internet across Nigeria.”

A Public-Private Partnership approach to SPV project delivery, by Tijani

Dr. Tijani also noted that over the last few months, his Ministry in conjunction with the Nigerian Communications Commission (NCC), National Information Technology Development Agency (NITDA), Galaxy Backbone Limited, and other government agencies have put in extensive groundwork to set up the SPV to realise the objective.

According to him, the project will be modelled in governance and operations similarly to some of the best Public-Private Partnership (PPP) setups in Nigeria, such as NIBSS and Nigeria Liquefied Natural Gas (NLNG).

He further explained: “This extensive coverage will enable us optimise the unique benefit of having 8 submarine cables already landed in Nigeria and therefore drive an uptake of the data capacity that the cables offer, beyond the current usage level of 10%.

“Building on our existing work with the Broadband Alliance, this increased connectivity will help plug the current non-consumption gap by connecting over 200,000 educational, healthcare and social institutions across Nigeria, ensuring that a larger section of our society can be included in the benefits of internet connectivity.

Specific benefits of SPV launch to Internet users, Nigeria’s GDP

In regard to the practical benefits of this SPV, Dr. Tijani listed some of these immediate gains to include increasing Internet penetration in Nigeria to over 70 percent; potential reduction of the cost of access to Internet by over 60 percent; inclusion of at least 50 percent of the 33 million Nigerians currently excluded from access to the Internet; and delivering up to 1.5 percent of the Gross Domestic Product (GDP) growth per capita raising GDP from $472.6 billion (2022) to $502 billion over the next four years

FEC approves ‘Nigeria Startup House’ in US for visibility, positioning in global tech ecosystem

In a related development, Dr. Tijani has said that in line with the desire of the Ministry of Communications, Innovation and Digital Economy and its associated agencies, such as NCC, NITDA, Galaxy Backbone Limited and NigComSat, to position Nigeria as a significant player in the global technology landscape, the Federal Executive Council also, approved  the conversion of an existing property of the Federal Government of Nigeria in San Francisco, United States (US) to a “Nigerian Digital Technology Exchange Programme Hub (Nigeria Startup House)”.

The Minister said as the stakeholders work towards achieving key elements of the country’s Trade and IEC Strategic Blueprint Pillars, the Nigerian Startup House in the US would play a critical role in promoting the country’s economic interest, attracting Foreign Direct Investments (FDIs), and improving the visibility and positioning of Nigeria’s Startup Ecosystem to attract funding and expertise from global markets and organisations represented in the San Francisco Bay Area and beyond.

He equally explained that the San Francisco Bay Area, and nearby Silicon Valley are recognised globally as a major source of startup ecosystem funding, with a combined GDP value of just over $929 billion, and is home to over 200 of the largest companies in the world by revenue.

Dr. Tijani stated: “In addition, most of the $1.3 billion funding sourced by Nigerian technology startups in 2023 alone came from Venture Capital funds in the Bay Area.

“While the ownership of the Nigeria Startup House will remain with the Federal Government, represented by the Federal Ministry of Communications, Innovation and Digital Economy and the Federal Ministry of Foreign Affairs, it will be managed by a consortium of Nigerian digital technology companies, who will provide non-public funding for the operations of the Startup House.”

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