Nigerian Startups Could Bag More Government ICT Contracts With New Policy
Nigerian Startups Could Bag More Government ICT Contracts With New Policy
Nigeria's President, Muhammadu Buhari, has launched a policy that could result in more government ICT contracts going to Nigerian startups.
Nigeria's Federal Government officially launched the National Policy for the Promotion of Indigenous Content in the Nigerian Telecommunications Sector on Thursday, May 6, 2021. Additionally, the Revised National Digital Identity Policy for SIM Card Registration was launched.
The launch of the Revised National Digital Identity Policy for SIM Card Registration reaffirmed the requirement for all SIM card registrations to use the NIN.
The National Policy for the Promotion of Indigenous Content in the Nigerian Telecommunications Sector aligns with the eighth pillar of the President's November 2019 National Digital Economy Policy and Strategy (NDEPS) Document.
The eighth pillar, titled "Indigenous Content Development and Adoption," aims to establish a policy framework for identifying outsourced jobs and facilitating their repatriation to digitally skilled Nigerians.
More Plans for Startups
According to one of the pillar's implementation strategies, the government will increase its patronage of digital startups, allowing them to compete for a minimum percentage of government-funded jobs.
As previously stated, the Nigerian government is not known for awarding ICT contracts to indigenous firms. In 2017, the Nigerian Railway Corporation (NRC) published an advertisement on its website inviting interested bidders to submit an Expression of Interest (EOI) for the development of a secure e-ticketing system on an investment basis.
According to one of the notice's eligibility criteria, businesses must have "verifiable evidence of financial capability with an average annual revenue of not less than $1 billion ($2.8 million) in the preceding three years (2014, 2015, and 2016)." A highly implausible criterion that is likely to marginalize small Nigerian startups and ICT firms.
The Lagos unified Internet Fibre Infrastructure Project, which began in 2020, is a more recent example. Local industry experts revealed that the project's specifics regarding the future of fiber infrastructure in Lagos State were unclear.
However, as we reported in 2020, the Ekiti State Government partnered with on-demand mobility startup Metro Africa Xpress (MAX) to digitize commercial motorcycle (Okada) and tricycle operations (Keke). The purpose of the startup was to utilize digital technology to assist with the project.
While the new policy may pave the way for government support of Nigerian startups, given the policy's history, it remains to be seen how well it will be implemented.
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