On Tuesday 14th, May, Bosun Tijani, The Minister of Communications, Innovation, and Digital Economy, announced in a statement on X seen by Business World Africa that the Ministry has secured approval for the conversion of the Nigerian government’s property in San Francisco, USA to Nigerian Digital Technology Exchange Program Hub (Nigerian Startup House) and the launch of a Special Purpose Vehicle (SPV) for the delivery of an extra 90,000km of fiber optic cable.
After a series of deliberations at the council meeting, The Federal Executive Council (FEC) approved the projects. The developments are targeted to grab the attention of local tech ecosystem players and investors as critical indicators of the Ministry’s commitment to addressing the connectivity and startup funding objectives.
The minister said that the Nigerian Startup House, which is estimated to be worth close to $7 million, will play a critical role in promoting Nigeria’s economic interest, attracting Foreign Direct Investment, and improving the visibility and positioning of Nigeria’s Startup Ecosystem to attract investments from global markets and organizations represented in the San Francisco Bay Area and beyond, All of these goals will be pursued as we work to fulfill essential components of our Trade and IEC Strategic Blueprint Pillars.
Speaking about the San Francisco Bay Area, He acknowledged, “The San Francisco Bay Area, and nearby Silicon Valley, is recognized globally as a major source of startup ecosystem funding, with a combined GDP value of just over $929 billion and is home to over 200 of the largest companies in the world by revenue. In addition, most of the $1.3 billion funding sourced by Nigerian technology startups in 2023 alone came from Venture Capital funds in the Bay Area.”
The statement disclosed that the Ministry of Foreign Affairs, in conjunction with the Ministry of Interior, will represent the Federal Government, while the government remains the owner of the startup. The startup’s operations depend on non-public funding and would be managed by various Nigerian digital tech enterprises.
According to the minister, launching fiber optics cables will allow the nation to fully utilize the eight submarine cables’ distinct advantages and encourage a higher than 10% consumption rate for their data capacity.
This will complement the connectivity infrastructure and deliver stronger Internet access across Nigeria, ensuring that a greater segment of the population can benefit from Internet connectivity.
“It is also worth pointing out another outcome from FEC this week which, while not directly in the remit of my Ministry, I believe has exciting potential for our startup ecosystem.” He added
