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The Federal Executive Council (FEC) of Nigeria has greenlit the establishment of a Special Purpose Vehicle (SPV) aimed at accelerating the deployment of fiber optic cables across the nation. Additionally, it has approved the creation of a Nigerian Digital Technology Exchange Programme Hub in San Francisco, USA.
According to Bosun Tijani, Minister of Communications, Innovation, and Digital Economy, these initiatives are pivotal in positioning Nigeria as a significant player in the global technology arena. Tijani emphasized the opportunities these approvals offer to Nigerians, particularly within the digital startup ecosystem.
The SPV, designed after successful Public-Private Partnerships such as Nigeria Inter-Bank Settlement System Plc (NIBSS) and Nigeria LNG Limited (NLNG), will collaborate with government and private sector partners to expand Nigeria’s fiber optic coverage from the current 35,000km to 125,000km. This strategic expansion aims to make Nigeria’s terrestrial fiber optic network the third longest in Africa, trailing behind Egypt and South Africa. Leveraging Nigeria’s eight submarine cables, this initiative seeks to increase data capacity usage from the existing 10%.
Tijani outlined the immediate benefits of this expansion, including raising internet penetration to over 70%, reducing internet access costs by more than 60%, and connecting over 200,000 educational, healthcare, and social institutions across Nigeria. The projected contribution to GDP growth per capita is estimated to be up to 1.5%, potentially elevating GDP from $472.6 billion in 2022 to $502 billion over the next four years.
The second initiative, the Nigerian Digital Technology Exchange Programme Hub (Nigeria Startup House), will repurpose an existing Federal Government property in San Francisco into a hub aimed at promoting Nigeria’s economic interests and attracting foreign investment. Tijani highlighted the significance of the San Francisco Bay Area, including Silicon Valley, as a global hotspot for startup funding, with a combined GDP exceeding $929 billion and housing over 200 of the world’s largest companies.
The Nigeria Startup House, to be owned by the Federal Government and managed by a consortium of Nigerian digital technology companies, aims to boost Nigeria’s visibility in the global tech landscape, attract funding and expertise from global markets, and capitalize on the significant venture capital funds available in the Bay Area.
These initiatives underscore Nigeria’s commitment to advancing its digital infrastructure and positioning itself as a key player in the global technology ecosystem, promising substantial economic and technological benefits for the nation.
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