Nigeria Secures $500 Million to Boost Local Digital Economy Funding

The Nigerian federal government has successfully secured access to approximately $500 million in funding to establish a local funding initiative aimed at bolstering innovation and entrepreneurship within the nation’s digital sector.

Bosun Tijani, Minister of Communications and Digital Economy, unveiled this achievement during a dinner event held in partnership with the World Bank in Abuja on Friday. Additionally, the World Bank will collaborate with the National Identity Management Commission (NIMC) to roll out digital national IDs for 148 million Nigerians by June 2024, as reported by ThisDay.

During the dinner, the minister outlined the government’s strategy to anchor local funding efforts within Nigeria to ensure genuine benefits for Nigerian businesses. He also highlighted plans to collaborate with the Bank of Industry.

Local Funding Initiative’s Launch with $500 Million Tijani expressed his commitment to working with entities that will guarantee Nigerian businesses reap the rewards of the funds, and he stressed the importance of attracting more investors to augment the funding available for local digital sector enterprises.

“We have secured access to approximately half a billion dollars to initiate local funding,” remarked Bosun Tijani.

“One of my key responsibilities involves collaborating with the Bank of Industry to ensure the domestic placement of this funding in Nigeria. We will partner with organizations skilled in business management and investment to ensure that the beneficiaries are authentic Nigerian enterprises.”

“The intention is for this funding to be available within the local landscape, and in the upcoming months, its scale will expand. As these funds grow, we aim to leverage them further. The government’s involvement is not limited to injecting half a billion dollars; we intend to attract more investors. By increasing our funding pool, more of our innovators can gain access to vital resources.”

World Bank and NIMC Collaboration for National IDs Shubham Chaudhuri, the World Bank Country Director for Nigeria, reaffirmed the institution’s dedication to poverty reduction, enhancing livelihoods, and creating job opportunities for the nation’s youth during the Friday dinner.

Chaudhuri emphasized the necessity of leveraging digital technologies to drive transformation and highlighted two key areas of partnership with Nigeria. He underlined the significance of a digital national ID as the foundation for digital transformation, and he announced the World Bank’s collaboration with the National Identity Management Commission (NIMC) to ensure the successful deployment and registration of digital national IDs for all Nigerians.

The World Bank representative set a target to provide at least 148 million working-age individuals with a digital national ID by the middle of the coming year, marking a notable stride towards inclusivity and accessibility.

“Our primary objective here in Nigeria is to eradicate poverty, enhance lives, and create jobs for all Nigerian youth. One of the areas that we believe holds immense potential is the realm of digital technologies for transformation. And this transformation commences with the existence of a digital national ID.”

“One of our main collaborations involves working closely with NIMC to facilitate the rollout and registration, ensuring that all 213/220 million Nigerians possess a digital national ID. Our priority, of course, starts with the working-age population, with a target of reaching at least 148 million people by the middle of next year.”

“Secondly, we are dedicated to aiding Nigeria in leading the way for broadband infrastructure expansion. Without robust broadband connectivity, digital technologies will inadvertently foster a digital divide. To achieve this, we have been advocating for favorable policies and regulations to attract private investments in this sector, as well as the development of fiber optic cables.”

“Another aspect involves collaborating with states to reduce right-of-way fees for fiber optic cables. This foundational work sets the stage for the potential that emerges once we have a national ID in place. A plethora of technologies and applications can be developed to provide essential services, expand financial access, and unlock new opportunities—these initiatives all hinge on developing skills.”