Initiative targets global capital, jobs and retention of Nigerian technology businesses and intellectual property

By Zaharaddeen Ishaq Abubakar | Katsina Times

President Bola Ahmed Tinubu has directed the development of a roadmap for the full implementation of Nigeria’s Digital Free Zones initiative within 180 days.

The directive is part of the Federal Government’s efforts to create an enabling environment for Nigerian technology and service companies to access global capital, create jobs and serve international markets while keeping their businesses and intellectual property in Nigeria.

The president directed the Minister of Trade and Investment, Dr Jumoke Oduwole, who serves as Vice-Chairman and Implementation Coordinator of the Presidential Steering Committee on Digital Free Zones, to work with the Itana Innovation project and other members of the committee to develop the implementation roadmap.

According to a statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the initiative is also expected to expand opportunities for Nigerians to work for global companies without leaving the country.

The government said it intends to strengthen the domestic ecosystem supporting digital businesses, including engineers, software developers, designers, lawyers, accountants and other professional service providers.

“Nigeria has the talent, enterprise and ambition to build companies that can compete anywhere in the world,” Tinubu said.

“Our responsibility as a government is to ensure that Nigerians do not have to leave Nigeria or rely on other jurisdictions to realise that potential.”

The president said the government wanted more of the economic value generated by Nigerian talent to remain in the country through employment, investment, professional services, intellectual property and the growth of indigenous businesses.

Tinubu established and chairs the Presidential Steering Committee on Digital Free Zones as part of efforts to modernise Nigeria’s free zone framework to meet the requirements of the digital economy.

“For too long, some of our most promising young entrepreneurs have felt compelled to establish their companies and intellectual property abroad to access global capital and markets. I do not accept that this must remain the case,” he said.

The president said the initiative was aimed at enabling the next generation of African technology, financial and service companies to be built, headquartered and scaled globally from Nigeria.

The initiative is already taking shape through Itana, described as Nigeria’s first Digital Free Zone, which has been licensed by the Nigeria Export Processing Zones Authority (NEPZA) to provide a platform for global and pan-African digital and service businesses to establish and operate from Nigeria.

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The Africa Finance Corporation is backing the $500 million Itana Innovation project at Alaro City in Lagos.

The project is expected to combine a supportive policy environment with an innovation campus, access to capital and ecosystem services to help African startups scale while retaining more of the value they generate on the continent.

Tinubu said the government’s ambition extended beyond the development of technology parks.

“We want African companies to be incorporated in Nigeria, financed here and governed from here, while serving markets across Africa and the world,” he said.

He added that young Nigerians in cities including Kano, Enugu, Warri, Minna, Maiduguri and Ibadan should be able to work for global companies without relocating abroad.

The president also said Nigerian founders should be able to raise capital internationally while retaining their companies and intellectual property in the country.

“When these businesses grow here, they employ Nigerians, use Nigerian professional services and retain more of the value they create in our economy,” he said.

The Presidential Steering Committee is expected to continue work on regulatory, taxation, banking, immigration, arbitration and the digitisation of government processes within the country’s free zones.

Tinubu also said the initiative would position Nigeria to benefit from the expansion of Africa’s digital economy and the growth of digitally enabled trade under the African Continental Free Trade Area.

“Nigeria has the talent and the market to reshape Africa’s place in the global technology and digital economy value chain,” he said.

“This is what our Renewed Hope commitment to a digital economy looks like in practice, and this is how we transform reform into opportunities.

“We made a promise to Nigerians. We are keeping it.”