Money everywhere for Nigeria’s National Information Technology Development Agency (NITDA) as bank profits arrive: “The surge in profits recorded by Nigerian banks in 2024 is proving to be more than a shareholder delight — it’s fast becoming a major boost to the country’s underfunded tech ecosystem.
According to an analysis of audited results from six commercial banks, their collective contribution to the Nigeria Information Technology Development Fund (NITDEF) has climbed by 57% year-on-year, hitting N34.3 billion — the highest since the fund was established.
“These banks — Zenith Bank, Guaranty Trust Holding Company (GTCO), United Bank for Africa (UBA), Fidelity Bank, Stanbic IBTC Holdings, and Wema Bank — have so far outpaced last year’s total contribution of N21.8 billion. This leap underscores the direct link between banks’ profitability and the growth of the technology development fund managed by the National Information Technology Development Agency (NITDA).”
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The money rain used to fall from telcos. But telcos have been weakened. Now, the banks are bringing the goodies which we expect NITDA to manage well. Among other things, NITDA needs to run a matching fund model where it explores ways to support the local tech ecosystem by co-investing with SEC-registered money managers in Nigeria.
Why is that necessary? Nigeria’s tech sector has lost significant momentum since the FX paralysis hit the nation in 2023. But if NITDA can put in say 10-15% along with early stage investors in Nigeria, it can stimulate the ecosystem further. In other words, if a startup needs $100k, NITDA can contribute $10k provided SEC-approved funds have contributed $90k.
(Tekedia Capital will not qualify as our fund is a US fund, and cannot qualify for any matching fund, before you think I am pushing for something that will benefit Tekedia Capital. We do not partner with governments in any form or ways. In short, we declined proposals from 3 state governments which wanted to join our community. We do not need any help from any government; we like to be 100% private sector-driven)
Nigerian Banks’ Profit Boom Powers Tech Development as NITDEF Contributions Hit Record N34.3bn
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