Nigeria Government Secures $119 Million Investment for Tech Startups

The Nigerian government has successfully secured approximately $119 million in investments aimed at developing tech hubs and supporting micro, small, and medium enterprises (MSMEs). This announcement was made by Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, on October 17, 2024.

The investment follows Vice President Kashim Shettima’s engagement with global investors during a business meeting with Swedish firms in Stockholm. Shettima emphasized Nigeria’s promising investment climate, highlighting the abundant opportunities available for serious investors.

Akinola Jones, Director of Gluwa, a digital wallet service, revealed that the company plans to train over 30,000 Nigerians in digital skills, aligning with President Bola Tinubu’s Renewed Hope Agenda. Jones stated, “We have a big vision for Nigeria, and I think our vision is banking the unbanked and connecting the unconnected.” He also mentioned that Gluwa is committing $100 million across Nigeria, aiming to launch a satellite for direct WiFi connectivity by December, which would significantly enhance the technology ecosystem

Mr. Peter Olusoji Ogundele, Managing Director of Ericsson Nigeria, announced plans to establish a $19 million technology hub in Nigeria. He expressed optimism about the local workforce, stating, “Nigeria has enough youths who can come into that field. We can train them; Ericsson will also take part in it.”

Swedish Vice President Edgar Luczak assured Shettima that collaboration between Nigeria and Sweden could lead to economic strengthening and job creation. He mentioned an initiative to develop an accelerated program similar to successful partnerships with companies like Google and Microsoft, tailored to Nigeria’s unique growth trajectory.

Vice President Shettima underscored President Tinubu’s bold economic reforms aimed at fostering a competitive business environment that attracts both foreign and domestic investments. He cited various opportunities within Nigeria, including in the digital economy, agriculture, renewable energy, and MSMEs, stating, “The government’s ‘Renewed Hope Agenda’ emphasizes creating a competitive business environment

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Describing MSMEs as the backbone of Nigeria’s economy, Shettima noted they account for 96% of businesses and over 84% of employment. However, he acknowledged their challenges, such as limited access to capital and markets. He encouraged Swedish investors to support Nigerian MSMEs, particularly by providing access to technology and expertise in key sectors.

Highlighting the growth of the digital economy, Shettima cited Nigerian tech start-ups like Flutterwave and Paystack, which collectively attracted over $1 billion in funding in 2022. He expressed optimism about the partnership potential between Nigeria and Sweden, urging investors to seize the opportunities presented by the nation’s ambitious economic landscape.

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