The Federal Government has officially launched a Digital Trade Desk aimed at accelerating funding for Nigerian startups, with a target of raising $5 billion to foster innovation, entrepreneurship, and economic growth in the country.
The initiative, announced by Dr. Bosun Tijani, Minister of Communications, Innovation, and Digital Economy, on Monday, was introduced in collaboration with the Federal Ministry of Industry, Trade, and Investment.
Tijani described the launch as a significant milestone in the Ministry’s efforts to enhance the contribution of information and communication technology to Nigeria’s economy.
He explained that trade, which is one of the key pillars of the Ministry’s strategic blueprint, presents an opportunity to promote Nigerian technology exports. The establishment of the Digital Trade Desk is expected to provide robust support to local tech companies, helping them access and compete in markets across Africa and globally.
With an ambitious vision, the initiative aims to raise the technology sector’s contribution to Nigeria’s GDP from the current 14–18% to 21% within the next three years. Furthermore, the Digital Trade Desk seeks to boost annual funding for Nigerian startups, scaling from $1 billion to $5 billion over the same period. This goal is intended to encourage innovation, entrepreneurship, and enhance the country’s global competitiveness.
The new desk will offer a comprehensive suite of programs, partnerships, and policy-driven interventions. It also aligns with Nigeria’s goal to improve its ranking on the Economic Complexity Index, reflecting the country’s commitment to diversifying its trade and advancing its position in the global digital economy. The ECI measures a country’s productive knowledge and the complexity and diversity of its exports.
Nigeria’s ECI in 2022 was -1.67, placing it 127th out of 133 countries. Tijani stated that the Digital Trade Desk is part of President Bola Tinubu’s broader objective of growing Nigeria’s economy to $1 trillion, driven by innovation, investment, and international trade.
Once the leading destination for startup funding, Nigeria has recently fallen behind Kenya, which overtook Nigeria in 2023 as the top destination for startup investment. In 2024, Nigerian startups raised just over $400 million, a figure still far below Kenya’s $638 million. However, Nigeria’s funding total was bolstered by two significant deals: Moove’s $110 million Series B round led by Uber and Moniepoint’s $110 million Series C round.
“With a bold vision, the initiative seeks to increase the technology sector’s contribution to Nigeria’s GDP from the current 14–18% to 21% within the next three years.
“Additionally, the Desk aims to amplify annual funding for Nigerian startups, scaling up from $1 billion to $5 billion over the same period, thereby fostering innovation, entrepreneurship, and global competitiveness,” he said.