REVIEW: 6 Key Policies That Shaped Nigeria’s Tech Industry in 2023
The Nigerian Information and Communication Technology (ICT) industry experienced both challenges and triumphs in 2023, marked by slow funding and leading to the closure of some startups.
However, the sector recorded significant wins, midwife by some key government policies and initiatives. The election year brought about changes in national leadership and a renewed focus on the tech ecosystem, setting the stage for a potentially-brighter 2024.
The emergence of Bosun Tijani, a prominent figure in the country’s tech ecosystem, as the Minister of Communications, Innovation, and Digital Economy, signaled a strategic shift in the government’s approach towards technology.
While the immediate-past administration had also made some vital policy announcements relating to the tech industry before its exit on May 29, 2023, here are some of the strategic policies that shaped the industry in 2023:
1. i-DICE Program
The i-DICE programme which aims to promote innovation and generate job opportunities within the technology sector was launched in March, 2023 under the immediate-past administration of former President Muhammadu Buhari.
The immediate-past Vice President Yemi Osinbajo launched the $672 million fund under the Investment in Digital and Creative Enterprises (i-DICE) program.
President Bola Tinubu’s administration took over the project on his assumption of office and set up an implementation committee headed by Vice President Kashim Shettima.
For the project, the African Development Bank is to put in $170 million, Agence Francaise de Developpement is to contribute $116 million will, and another $70 million from Islamic Development Bank.
The government through the Bank of Industry Nigeria will release $45 million while the private sector pledged $271 million.
Under i-DICE, constraints such as access to capital, and capacity limitation of Start-ups would be effectively addressed. But according to Osinbajo, more needs to be done to scale up such programs.
The multi-faceted funding approach involving international organizations and the private sector aimed to address capital constraints and capacity limitations for startups.
2. Suspension of 5% Telecom Tax
President Bola Tinubu’s administration took a decisive step in July 2023, by ordering the suspension of the 5% tax on telecom services.
Although the Buhari administration had early in the year announced its decision to put the implementation of the 5% tax on telecom services on hold, TInubu re-echoed this in July by ordering the suspension of the excise duty, thus bringing reprieve to Nigerians and the tech industry players riding on telecom services.
“The Excise Tax of 5% on telecommunication services has generated heated controversy. There is also a lack of clarity regarding the status of this tax, just as players in the sector also complain about the imposition of multiple taxes on their operations,” the Special Adviser, on Special Duties, Communication and Strategy, to the President, Dele Alake, stated while announcing the suspension.
This move provided relief to both Nigerians and tech industry players facing challenges posed by multiple taxes.
3. Three Million Technical Talent (3MTT) Program
In October 2023, the government launched the 3MTT program, a landmark initiative aimed at training three million Nigerians in tech skills over the next four years.
In the first phase of the program, 30,000 Nigerians were selected and are currently undergoing training in different IT skills areas including Cybersecurity, Data Analysis, SEO, among several others.
According to the Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, the program, a critical part of the Renewed Hope agenda, is aimed at building Nigeria’s technical talent backbone to power its digital economy and position Nigeria as a net talent exporter.
4. Data Protection Act
President Tinubu signed the Nigeria Data Protection Bill 2023 into law in June, establishing the Nigeria Data Protection Commission. The legislation provides a legal framework for protecting and regulating personal information, replacing the Nigeria Data Protection Bureau.
Recall that the Data Protection Bill was introduced to the Senate and House of Representatives for consideration and passage on Tuesday, 4 April 2023 via a letter from former President Buhari.
Now an Act, the new law establishes the Nigeria Data Protection Commission and replaces the Nigeria Data Protection Bureau (NDPB) established by President Buhari in February 2022.
5. AI Policy and NAIR Scheme
Acknowledging the global significance of Artificial Intelligence (AI), the federal government unveiled its National AI Strategy, supporting startups through the Nigeria Artificial Intelligence Research (NAIR) scheme.
The initiative selected 45 startups and individuals, each receiving a N5 million grant to develop AI projects across healthcare, agriculture, finance, and education.
According to the Minister of Communications, Innovation, and Digital Economy, the selected AI researchers cut across healthcare, agriculture, finance, and education, and they can propel Nigeria’s tech landscape onto the global stage.
He added that the Scheme aims to foster a vibrant and sustainable AI ecosystem in Nigeria by providing grants and facilitating knowledge sharing and collaboration among individuals and organizations in the AI industry.
6. Nigeria Startup Act Implementation
The Nigeria Startup Act, signed into law in October 2022, saw concrete steps taken towards its implementation in November 2023.
The government launched an engagement portal to register startups, initiating the process of setting up consultative forums to select representatives for the National Council for Digital Innovation and Entrepreneurship.
According to Dr. Tijani, the launch of the portal allows the government to initiate the process of setting up the startup consultative forums to select representatives to the National Council for Digital Innovation and Entrepreneurship to facilitate discourse and consensus among Nigerian ecosystem players.
Despite the challenges faced in 2023, the Nigerian tech industry experienced pivotal moments through government policies. The foundations laid last year have already set the stage for a likely prosperous 2024.
And while the success of these initiatives hinges on political will and meticulous implementation, the signs point towards a brighter future for the Nigerian tech sector.
Source: TECHDIGEST
