The Nigerian tech ecosystem has been recording tremendous growth in the past years.
Paystack received 8M USD from Ycombinator to build a payment platform and it was acquired by Stripe with $200M last year.
Flutterwave raised a $170M Series C funding in March 2021 to expand their business across more business units this was after the FINTECH company raised 35M USD in January 2021, its current valuation is worth over $1B. Kuda bank was also on the headlines recently after raising a 25M USD series A funding led by Valar Ventures. There have also been technological advancements in the media and medical industry.
However, the startup ecosystem faces constraints – which is an environment that does not enable innovation to thrive with a free cause. Stifling regulation, multiple tax system, poor electricity, and other non-tariff barriers have been highlighted as some of the major setbacks in their business activities and a way out of this is to create an enabling environment that is fully optimized to allow the ease of doing business for better performance and to make innovation thrive.
Social Economic Zones are special jurisdictions that allow a set of rules and regulations that is independent of that of the host nation. SEZs allow a seamless business environment with competitive fiscal incentives and it reduces non-tariff barriers to promote improved economic activities.
Abuja Technology Village is a technology park concept with a special economic zone status located in Nigeria’s capital. It will provide technology-driven businesses of varying sizes and at all stages of maturity with an opportunity to cluster in an environment to unlock their potential through facilitated knowledge transfer and leveraging on-site research and human capital capabilities. It would be one of the world’s largest technology parks by landmass and is envisaged to open global avenues for numerous Nigerian entrepreneurs. It follows the global vision of using technology clusters as a reliable tool for fostering economic development; given Nigeria’s emerging prominence in the global economy.
In actualizing the ATV concept, lessons have been drawn from similar initiatives worldwide, like Silicon Valley in the US, Dubai Internet City, International Tech Park in Bangalore, and Cyberjaya in Malaysia. ATV will consist of the clustering of local and international companies, recreational facilities, residential complexes, and other amenities. ATV creates and fosters the necessary conditions, infrastructure, and programs that would encourage and allow developers, entrepreneurs and companies are innovative and by such, generate profit, create employment opportunities, and upgrade social welfare.
The tech city will have 3 phases; The business park will consist of various sizes of office, warehouse, and logistics space. residential park with a mix of housing types of childcare facilities and primary and secondary schooling. The leisure park will consist of a golf court, hotels, shopping malls, relaxation centers, cultural and exhibition centers.
Infrastructure will include Uninterrupted Power, High-Quality Roads and Boulevards, Security, Telecommunications and Broadband Internet services, Water, Smart Buildings and Strict Quality Building codes, Landscaped surroundings, and green infrastructure for environmental sustainability.
The Sector clusters will be targeting: – Information and Communications Technology, Biotechnology, Media Technology, Multimedia Services, Medical Technology, Business Process Outsourcing, Education and Skills hubs.
With its SEZs status, companies situated in the zone will have 100% repatriation of profit, higher tax cut, participative governance structure, alternative dispute resolution system that is credible and enforceable, private administration, reduced non-tariff barriers, and a host of other benefits.