The Federal Government of Nigeria has unveiled the Technology Export and Digital Trade Desk, a new initiative aimed at revitalizing the nation’s technology sector by promoting exports, attracting investments, and scaling up annual funding for startups to $5 billion within three years.
The project, announced by the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, was launched in collaboration with the Federal Ministry of Industry, Trade, and Investment.
While heralded as a key milestone in boosting Nigeria’s tech ecosystem, stakeholders remain skeptical about its potential impact, citing deeper structural issues that need urgent attention.
Register for Tekedia Mini-MBA edition 17 (June 9 – Sept 6, 2025) today for early bird discounts. Do annual for access to Blucera.com.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register to become a better CEO or Director with Tekedia CEO & Director Program.
Dr. Tijani described the launch as part of the Ministry’s broader strategy to enhance the ICT sector’s contribution to the national economy. He outlined ambitious targets, including raising the sector’s GDP contribution from 14–18% to 21% by 2026 and increasing startup funding from $1 billion to $5 billion annually.
“The Trade Desk aims to empower Nigerian technology companies to compete globally by providing bespoke support and fostering an enabling environment for innovation, entrepreneurship, and global competitiveness,” Tijani explained.
The initiative also aligns with Nigeria’s commitment to improving its standing on the Economic Complexity Index (ECI), which assesses a country’s ability to produce diverse and complex goods. Nigeria ranked 127th out of 133 countries in 2022, with a score of -1.67, underlining the urgent need to diversify its economy.
Despite the optimistic projections, industry stakeholders have expressed doubts about the effectiveness of the Trade Desk amid systemic issues stifling Nigeria’s tech sector. Many believe the initiative, while well-intentioned, falls significantly short of what is required to revitalize the sector and attract substantial investment.
Experts point to the unfriendly business environment as a key challenge. High costs of doing business, bureaucratic bottlenecks, and inadequate infrastructure remain significant deterrents to investors. Poor fiscal policies have also taken a toll, with the sector suffering from inconsistent tax regimes, foreign exchange instability, and a lack of clear incentives for startups and tech investors. Additionally, the unpredictable business climate, characterized by regulatory uncertainty and sudden policy shifts, has eroded investor confidence over time.
Nigeria’s Decline as a Startup Investment Destination
Once regarded as Africa’s leading destination for startup funding, Nigeria has lost its edge in recent years. In 2023, Kenya overtook Nigeria as the top destination for startup investment, attracting $638 million compared to Nigeria’s $400 million.
Although Nigeria’s funding in 2024 received a boost from mega deals such as Moove’s $110 million Series B round (led by Uber) and Moniepoint’s $110 million Series C round, the overall investment landscape remains bleak. Analysts attribute this decline to the same issues raised by stakeholders, emphasizing the need for comprehensive reforms to create a more conducive environment for both local and foreign investors.
The Trade Desk is part of President Bola Tinubu’s ambitious plan to transform Nigeria into a $1 trillion economy. The government aims to achieve this by fostering innovation, encouraging investment, and promoting international trade. However, stakeholders warn that without addressing the systemic challenges, such lofty goals may remain out of reach.
To truly revitalize Nigeria’s tech ecosystem, experts recommend streamlining regulations to simplify business registration and regulatory compliance, reducing barriers for startups and investors.
The government has been urged to prioritize infrastructure investment, particularly in reliable electricity, broadband connectivity, and transport networks to support tech companies. Consistent fiscal policies have also been touted, as a stable and predictable tax and foreign exchange regime would enhance investor confidence.