President Bola Tinubu has advanced Nigeria’s Digital Free Zones initiative in a bid to facilitate global capital acquisition for local technology and service companies. This move, part of the Renewed Hope administration, aims to allow Nigerian businesses to thrive in the international market while keeping their operations and intellectual property within the country.
To this end, President Tinubu has tasked Dr. Jumoke Oduwole, Minister of Trade and Investment, who also serves as Vice-Chairman and Implementation Coordinator of the Presidential Steering Committee on Digital Free Zones, to collaborate with the Itana Innovation project and the Committee to outline a comprehensive plan for the full launch of the initiative within the next 180 days.
According to a statement from Bayo Onanuga, Special Adviser to the President on Information & Strategy, the initiative is expected to provide opportunities for more young Nigerians to work for global firms from Nigeria, thus enriching the local ecosystem of engineers, developers, designers, lawyers, accountants, and other professionals who support burgeoning digital enterprises.
The President emphasized that Nigeria possesses the talent, ambition, and entrepreneurial spirit to compete on a global scale, and it is the government’s duty to ensure that this potential is realized domestically rather than abroad.
The initiative aims to retain a greater share of the economic value generated by Nigerian talent within the country through job creation, investments, professional services, intellectual property, and the growth of local businesses.
President Tinubu established and leads the Presidential Steering Committee on Digital Free Zones to modernize Nigeria’s free zone framework, which has existed for over thirty years, to better align with the needs of the digital economy. He expressed concern that many promising young entrepreneurs have felt it necessary to set up their businesses and intellectual property overseas to access global capital and markets, a situation he is determined to change.
The project is already taking shape with Itana, Nigeria’s first licensed Digital Free Zone, which is backed by the Africa Finance Corporation with a $500 million investment. This initiative aims to create a conducive policy environment, provide an innovation campus, and offer access to capital as well as ecosystem services to help African startups scale and retain more value domestically.
President Tinubu noted that the ultimate goal is for African companies to be incorporated, financed, and governed from Nigeria while catering to markets both locally and globally.
He envisions a future where young Nigerians in various cities can work for international companies without relocating and where local founders can secure global funding while their companies and intellectual property stay in Nigeria. He also remarked that the growth of these businesses would result in increased employment opportunities for Nigerians and better utilization of Nigerian professional services, thereby enhancing the economy.
The Presidential Steering Committee will continue to address various aspects, including regulation, taxation, banking, immigration, arbitration, and the digitalization of government processes within Nigeria’s free zones.
President Tinubu also indicated that this initiative is designed to position Nigeria to leverage the rapid growth of Africa’s digital economy and benefit from the opportunities presented by the African Continental Free Trade Area. Ultimately, the objective is for Nigeria to play a pivotal role in reshaping Africa’s position in the global digital economy value chain.
