Afrigather 2023 was a outstanding yr for Nigeria’s tech ecosystem. Regardless of the decline in enterprise funding, layoffs, and shutdown of some startups, the ecosystem scored some main wins from the coverage facet. We noticed the introduction of insurance policies aimed toward supporting startups and innovation. The appointment of a member of the tech ecosystem into the federal cupboard additionally created a brand new stage of validation. This leaves a path of each alternatives and unexpected challenges for subsequent yr.
In March, Nigeria turned the primary nation in Africa to undertake open banking regulations that permit banks to share buyer information with third-party service suppliers—fintechs and cell cash operators. This transfer promised elevated information sharing and innovation, empowering customers with management over their information. Nonetheless, the preliminary pleasure was dampened by a proposed plan by Nigeria’s Central Financial institution to centralise open banking operations by way of the Nationwide Inter-Financial institution Settlement System (NIBSS). The apex financial institution would later rescind the choice following pushback from industry stakeholders.
Additionally in March, Osun state made headlines after cancelling right-of-way fees, permitting telecom corporations and web suppliers to put fibre optic cables without spending a dime. The transfer was aimed toward attracting startups to arrange store within the state. Osun additionally unveiled plans to cultivate the Nigerian Startup Act. The Nigerian authorities additionally launched a $618 million fund below the Funding in Digital and Artistic Enterprises (iDICE) initiative to advertise innovation and entrepreneurship within the digital, know-how, and inventive industries.
Might got here with a twist as Nigeria’s Central Financial institution revoked the working licences of greater than 100 monetary establishments throughout the nation for non-compliance. One of many affected banks is the Softcom-owned digital financial institution Eyowo. One other outstanding occasion in Might was the last-minute attempt by former Nigeria’s minister of communications and digital economic system, Isa Ali Pantami, to amend the already handed Nigeria Startup Act, simply days earlier than ex-president Muhammadu Buhari’s tenure ended. Equally, a controversial bill that seeks to ascribe new powers to the Nationwide Data Know-how Improvement Company (NITDA), Nigeria’s governing physique for data and know-how, handed a public listening to on the Senate, regardless of pushback from stakeholders.
In June, President Bola Tinubu signed the Nigeria Knowledge Safety Invoice 2023 into regulation. The brand new regulation gives a authorized framework for safeguarding and regulating private data within the nation. In one other improvement, following the unification of the alternate charge, the central financial institution introduced new guidelines that permit beneficiaries of diaspora remittances to receive payments in naira. The transfer birthed new alternatives for fintechs and conventional banks. However on the flip facet, the brand new FX regime affected how Nigerian startups report revenue to their overseas traders.
In August, Bosun Tijani, co-founder of CCHub—adjudged to be one of the vital influential tech incubators on the continent—was named Nigeria’s minister of communications, innovation, and digital economic system. His appointment introduced a brand new wave of optimism for Nigeria’s rising tech ecosystem which now has a seat on the desk. In October, the minister formally unveiled his plans to coach 3 million technical skills in 4 years. In the identical month, OPay, Meta, and DHL were investigated by Nigeria’s Knowledge Safety Fee (NDPC), for alleged information privateness violations—claims that the businesses denied.
In November, the minister flagged off the pilot part of the formidable plan to coach 3 million technical skills. A complete of 30,000 will likely be skilled in three months. The identical month, the Nigerian authorities launched its Startup Support and Engagement Portal 13 months after its Startup Act was signed into law. The portal will facilitate the labelling of Nigerian Startups and the registration of enterprise capitalists, angel traders, accelerators, incubators, and innovation hubs. Different advantages embody tax incentives, entry to monetary assets, and fund administration in addition to collaboration with related authorities companies. In December, Nigeria’s Central Financial institution removed a two-year restriction on cryptocurrency transactions however launched stringent tips for monetary establishments.
In the end, 2023 was a yr of regulatory highs and lows for Nigeria’s tech ecosystem. One factor is evident: the ecosystem will likely be relying on considered one of its personal to push insurance policies and packages to spur its development. Extra importantly, collaboration and engagement with the federal government are a no brainer.
