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CREATING INCENTIVES FOR TECH START - UPS IN N IGERIA AND THE ROLE OF GOVERNMENT. CREATING INCENTIVES FOR TECH START - UPS IN N IGERIA AND THE ROLE OF GOVERNMENT.

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Presentation on theme: "CREATING INCENTIVES FOR TECH START - UPS IN N IGERIA AND THE ROLE OF GOVERNMENT. CREATING INCENTIVES FOR TECH START - UPS IN N IGERIA AND THE ROLE OF GOVERNMENT."— Presentation transcript:

1 CREATING INCENTIVES FOR TECH START - UPS IN N IGERIA AND THE ROLE OF GOVERNMENT. CREATING INCENTIVES FOR TECH START - UPS IN N IGERIA AND THE ROLE OF GOVERNMENT. A presentation by: Dr. Omofoman. I. Daniel DBA,M.AES,RFID+ Co-Founder, RFID Research and Development Centre the E-NIGERIA ANNUAL INTERNATIONAL CONFERENCE TRANSCORP HILTON HOTEL- ABUJA FCT 18 TH NOVEMBER,

2 F OOD FOR THOUGHT In the 21 st Century knowledge is arguably the single most important factor of socio-economic power, production and Research & development. The management of intellectual capital is one of the most critical success factors of society in its quest for survival, dominance and creating an enabling environment for technology startups in Nigeria and by extension sub-saharan Africa. Knowledge is therefore about people. 2

3 Introduction Concept of Incentives Categories of Incentives Concept of Startups/Challenges Startups Success Stories The Role of Government Recommendations and Way forward Conclusion C ONTENTS 3

4  It gives me a great pleasure to be at this epoch making event and to present this paper. Nigeria is a country of great potentials and possibilities and this makes it a great nation that would become the envy of all if we channel our natural and human resources in facilitating the production of goods and services for National Transformation through consented efforts by the public and private sectors as well as government at all levels.  Mr. Chairman let me state here that the theme for this year’s annual conference “Creating Market opportunities for Indigenous ICT products and Services” and the sub-themes under which this paper is being presented is very apt for a number of reasons but especially for the crucial role the private sector is playing and will continue to play in the economic and social development of our nation, as we match towards the realization of our aspirations to become one of the 20 economies by the year INTRODUCTION 4

5  Consequently, a growing army of technopreneurs (i.e. Technology focused Entrepreneurs) is an emerging start-ups in Nigeria. We are a country of about 140million people with the population being vibrant youths with median age of 19years or there about, this leads to a greater consumer-driven market.  It is no longer news that Nigeria is the largest oil producing nation in Africa, the largest mobile market in Africa with approximately 125 million mobile subscribers and a penetration rate of 75% in early  An economy of about $510bn and a growth rate of more than 8 percent, an interesting capital market according to recent statistics released by the Nigerian Stock Exchange which shows that international investors bought about $789 million of Nigeria stocks in the first 3 months of the year, this is no doubt a pointer to great dividends as well as a sound projection for positive economic growth in Nigeria. INTRO CONTD.... 5

6  Wikipedia (2014), defines incentive as something that motivates an individual to perform action, this is to say when channeled into startups it could turn around the fortunes of such business thereby bringing about greater rewards.  Similarly, the study of incentive structures is central to the study of all economic activities (both in terms of individual decision-making and in terms of co-operation and competition within a larger institutional structure.  This further explains that economic analysis, show the differences between societies (and between different organizations with in a society) largely amounts to characterizing the differences of what is known in modern terms as incentive structures faced by individuals involved in this collective efforts. Ultimately, incentives are aimed at providing value for money and contribute to organizational success. W HAT IS INCENTIVES 6

7  A classic example therefore, of economic analysis of incentive structures is the famous Walrasian chart of supply and demand curves.  However, a strong incentive is one that accomplishes the stated goals. If the goal is to maximize production, then a strong incentive will be one that encourages workers to produce goods at full capacity.  Incentives can be categorized according to different ways in which they motivate agents to take a particular course to action, and one common and useful taxonomy divides incentives into four broad classes as shown in the table below: C ATEGORIES OF INCENTIVES 7

8 8 WHAT ARE THE PROBLEMS ASSOCIATED WITH CREATING INCENTIVES FOR TECH STARTUPS?  Incentives structures are notoriously trickier than they might appear to people who set them up. Human beings are both finite and creative; that means that the people offering incentives are often unable to predict all of the ways that people will respond to them.  Consequently, imperfect knowledge and unintended consequences can often make incentives much more complex than the people offering them originally expected, and can lead to either unexpected windfalls or to disasters produced by unintentionally perverse incentives.

9 9 STARTUPS IN NIGERIA  The term “startup” has been bandied around with increasing frequency over the past few years to describe scrappy young ventures, hip San Francisco apps and huge tech companies. But what is a startup, really?  According to Neil Blumenthal, Co-founder and Co-CEO of Warby Parker, A startup is a company working to solve a problem where the solution is not obvious and success is not guaranteed.  Another school of thought has that: is a process, a product, a category, a business model, an ecosystem. No matter what it is, it has to have not existed before. Obviously other factors come into play: restrictions around resources, finances, size of teams, etc., but I find there is a lot of variation there, and for me the most important first qualifier is that it is novel.“  One thing we can all agree on: the key attribute of a startup is its ability to grow. As Graham explains, a startup is a company designed to scale very quickly. It is this focus on growth unconstrained by geography which differentiates startups from small businesses. A restaurant in one town is not a startup, nor is it a franchise a startup.

10 10 TECH STARTUPS SUCCESS STORIES FOR RFID R&D CENTRE

11 11 TECH STARTUPS SUCCESS STORIES FOR RFID RESEARCH CENTRE

12 12 TECH STARTUPS SUCCESS STORIES FOR RFID TECHNOLIGIES  In recent times, RFID Research & Development Centre has designed and implemented various RFID Applications in area like:  Library Inventory and Tracking System (LITS)  Animal Identification and Tracking System (AITS)  Vehicle After Sales Management System (VASMS)  Third-Party Insurance Policy Certification Systems (TIPCS)  Data Centre IT Assets Management System  Equipments Maintainance Management System These are system designed and implemented by the centre, they are no doubt a transformative tools for technological advancement, I therefore urge stakeholders to key into the RFID Technology as a platform for technological innovations in startups. It is my fervent believe that if NITDA pioneers the deployment of RFID Technologies to MDAs in the country, these could go along way in promoting good governance, value re-orientation, local contents as well as engendering National Value System for uncommon transformation.

13 13 WHAT DOES THE FUTURE HOLDS FOR STARTUPS IN NIGERIA?  It is my candid submission at this summit that in few years to come some of these challenges I mentioned would have been tackled if the Nigerian government show more support to the industry.  There are great potentials in investing and supporting the startup ecosystem in Nigeria, considering the economic outlook of Nigeria.  We have seen several companies like Nokia, MTN, Techno, Samsung, BlackBerry, Qualcomm, Google, Microsoft, Africa Internet Holding, Tony Elumelu Foundation, Stanbic IBTC etc. supporting and exploring the ecosystem.  The system before the end of 2017 will witness massive investment. There are huge opportunities yet to be tapped around Education, E-commerce, Health, and also Telecommunications. There is great need to develop startups that create products for the large consumer market in Nigeria. WHAT ARE THE ROLES OF GOVERNMENT?

14 ROLE OF GOVERNMENT 14  Private industry provides the greater proportion for Gross Expenditure on Research and Development (GERD) but this will not happen until government provides the enabling environment for startups.  it is therefore imperative that government establish the environment for private industry that is conducive: To investment in technology and development To enhance the transparency of markets To establish solid intellectual property protection regimes. To create conditions of economic stability To create financial markets in which trust and openness rather than corruption and clientilism supervene.  That journey as challenging as it is can be accomplished in a decade given a visionary, knowledgeable and committed leadership, but work must start now.

15 CONCLUDING REMARKS  In the new international environment of competition driven by technology and trade, the creation of incentives for tech startups in Nigeria is imperative.  In what areas of industrial and technological endeavours can Nigeria best develop competitive advantage? We need to ask this question in order to prioritize them effectively.  It is no longer news that Nigeria is rich in oil and gas as well as in various solid minerals, metallic and non- metallic.  Can we take advantage of these God-given resources into technological leadership in material science? Our vast biological diversity encourages the expectation that we can be a leader in Biotechnology. But what kind and what area of biotechnology? 15

16 16  Finally, we must understand science and technology cannot play the role we all envisage in our industrial and economic development in creating an enabling environment for tech startups unless we sign on to the dictates of a merit-driven but just society of technopreneurs.  How are we building in merit competence in our educational system? In a nutshell, whatever may be our vision and ambition for creating incentives for tech startups in Nigeria; until we can embrace the total scientification of Nigeria as a cultural necessity we are unlikely to fulfill our noble vision, mission and ambition as the giant or heart of Africa.

17 Material Science Building, African University of Science and Technology, Abuja Nigeria Tel: +234 (0) Thank you, for your attention 17


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