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Nigeria: FG Seeks More Investment in Innovation Hubs to Drive Nigeria’s Digital Economy

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FG Seeks More Investment in Innovation Hubs to Drive Nigeria’s Digital Economy

The Federal Government has called for increased investment in technology hubs and innovation spaces across Nigeria, describing them as critical platforms for developing local talent, supporting entrepreneurship and driving sustainable digital economic growth.

Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, made the call at a workshop in Abuja, where he stressed that Nigeria’s ambition to diversify its economy would require stronger support for the ecosystems that nurture technology businesses.

According to Tijani, while successful startups often attract significant attention, the innovation hubs, co-working spaces and grassroots communities that help entrepreneurs develop their ideas are equally important to the growth of the technology sector.

He said these spaces provide young Nigerians with access to mentorship, knowledge, networks, infrastructure and other resources needed to transform ideas into viable businesses.

Tijani, drawing from his experience managing a technology hub, said the growth of Nigeria’s technology ecosystem had demonstrated the potential of local talent and entrepreneurship.

However, he noted that the country would need to strengthen its ecosystem builders if it was to fully convert that potential into jobs, businesses and broader economic opportunities.

Infrastructure must be matched with ecosystem investment

The Minister said investments in digital infrastructure must be accompanied by efforts to develop the people and institutions capable of turning connectivity and technology into economic value.

He highlighted ongoing government investments in fibre-optic networks, telecommunications infrastructure and satellite technology aimed at extending digital access to underserved and hard-to-reach communities.

He added that the government was also advancing other components of the digital ecosystem, including digital identity and cloud infrastructure, through new policies and strategic interventions.

Tijani, however, warned that infrastructure alone would not deliver the desired transformation if innovation hubs lacked the resources and capacity to attract and retain skilled personnel.

“Imagine if we had all the hubs in Nigeria at the same level of quality as the best hubs in the country. There would be more technology businesses, more innovation and better opportunities across the country,” he said.

He also called for greater documentation and knowledge transfer from successful innovation ecosystems globally to Nigerian hub managers, saying local operators could benefit from lessons and best practices developed in other markets.

According to him, the impact of a strong innovation hub extends beyond individual entrepreneurs, as businesses emerging from such ecosystems can create employment, generate tax revenue and contribute to economic development.

Tijani said Nigeria could not achieve sustainable growth by relying heavily on oil and gas, stressing that technology, innovation and entrepreneurship would be essential to building a more diversified economy.

He cited successful Nigerian technology companies, including Paystack, as examples of what could emerge when talent is supported by the right ecosystem.

NITDA develops standards for innovation hubs

Against this backdrop, the National Information Technology Development Agency (NITDA) is working on a National Innovation Hub Standards Framework aimed at strengthening and decentralising Nigeria’s innovation ecosystem.

NITDA Director-General, Kashifu Inuwa, said the framework would provide innovation hubs with a structured mechanism for assessing their capabilities, identifying gaps and improving their level of maturity.

He explained that the framework was not intended to impose rigid requirements on hub operators but to provide guidance that would help them strengthen their operations and services.

Inuwa described innovation hubs as important meeting points for innovators, students, entrepreneurs, investors, businesses, academics and government institutions.

“Innovation does not happen in isolation; it happens in an ecosystem. And that ecosystem does not happen by accident; it happens by design,” he said.

According to the NITDA DG, Nigeria has a large pool of young and entrepreneurial talent, but many innovators still face challenges accessing funding, mentorship, networks, infrastructure and other resources required to turn ideas into sustainable businesses.

He identified talent, risk capital, large corporate organisations and government as key components of a functional innovation ecosystem, stressing the need for stronger collaboration among them.

Decentralising Nigeria’s innovation ecosystem

Inuwa expressed concern that innovation activities remain concentrated in Lagos, Abuja and a limited number of other states, despite the availability of talent and economic opportunities across the country.

He said the proposed framework would support the development of innovation ecosystems around the specific strengths, needs and opportunities of different communities instead of attempting to replicate a single model nationwide.

NITDA’s research, he disclosed, had identified more than 339 innovation hubs across Nigeria, although a significant number were concentrated in Lagos, Abuja and about 10 other states.

Some hubs outside the major innovation centres, he noted, continue to operate primarily as training centres and require additional support to develop into full-fledged innovation, incubation and entrepreneurship centres.

The proposed framework contains seven key dimensions and about 35 assessment categories through which hubs can evaluate their capabilities, identify gaps and determine their stage of development.

Inuwa stressed that the framework remained a draft and was not designed to be prescriptive.

Private sector, universities critical to ecosystem growth

The NITDA DG also emphasised the importance of private-sector participation, particularly in providing risk capital for startups and emerging businesses.

He said government could not independently finance the growth of Nigeria’s technology ecosystem and called for greater involvement from businesses, investors and development partners.

He also urged universities to play a more active role by strengthening research, entrepreneurship, digital skills and partnerships with industry.

According to Inuwa, NITDA is working with the Federal Ministry of Education to integrate digital skills into formal education and prepare graduates for greater participation in the digital economy.

He said a stronger relationship between academia and industry would help bridge the gap between education, research and the skills required by employers.

Inuwa encouraged innovation hub founders, investors, development partners, government institutions, academia and other stakeholders to contribute to the refinement of the proposed standards framework.

He said a robust network of innovation hubs across the country could help communities harness local talent, develop solutions to local challenges and create sustainable businesses.

Beyond supporting entrepreneurship, the initiative could also reduce the pressure on innovators to relocate to Lagos or Abuja before gaining access to the networks, infrastructure, funding and expertise needed to develop and scale their businesses.

The push for stronger innovation hubs therefore forms part of a broader effort to build a more decentralised digital economy in which talent and technology-driven opportunities can emerge from communities across Nigeria.

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