Nigeria’s Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, has revealed that the number of startups using blockchain technology in Nigeria will increase over the next few years.
This move not only promotes innovation but also positions Nigeria as a frontrunner in blockchain adoption.
Furthermore, he revealed that the plan also covers the expansion of government-led blockchain projects, signaling a commitment to harnessing the potential of this groundbreaking technology for public benefit.
It’s no news that Nigeria sits among the top nations around the world in terms of blockchain adoption especially as it relates to cryptocurrency.
In 2022, Nigeria attracted $563 million from Web3 VCs, just behind Kenya who got almost $900 million.
The expansion of blockchain technology adoption within startups and government initiatives will align closely with the Nigeria Startup Bill and the National Blockchain Policy.
Nigeria launched its Startup Bill and National Blockchain Policy over a year and five months ago respectively.
Support for startups
Speaking more about startups, the Minster added that it will implement a four-pillar strategy for the growth of startups in Nigeria. The first pillar focuses on establishing an active sandbox environment that encourages innovators and entrepreneurs to develop unique solutions, especially for sectors that have traditionally seen limited technological innovation.
Regulatory barriers will be removed to inspire innovative problem-solving approaches.
The next step will be recognizing the importance of patient capital in startup growth, this pillar aims to boost local access to funding.
The goal is to create an environment where startups can secure the necessary funding locally and contribute to Nigeria’s economic growth.
Collaborating with various ministries, parastatals, and private sector stakeholders, Dr. Bosun’s plan promotes technology application in critical sectors like AgriTech, HealthTech, EdTech, and more. These initiatives aim to enhance productivity and drive economic diversification.
The Minister has set ambitious targets, aiming to increase capital raised by Nigerian tech startups by 50% year-on-year, reaching $5 billion annually by 2027.
Simultaneously, he seeks to raise the domiciliation rate of local technology startups from under 1% to 25% within the same timeframe.
National Digital Economy bill
Additionally, he said that the ministry will throw its full support behind the National Digital Economy bill. The process will include collaboration with stakeholders to review and enact the bill by the end of 2024.
This legislative framework is expected to provide a robust foundation for Nigeria’s digital economy, ensuring it is in line with global standards.
To modernize Nigeria’s administrative processes, the minister seeks to drive reforms for the 50% implementation of the Act by gradually replacing paper-based methods.
This forward-looking approach aims to streamline government operations and enhance efficiency, aligning with the digital age’s demands.