Startups

Accelerating Kano’s Future Through Technology and Innovation

Your Excellency, 

I write to you with profound optimism about the transformative potential of technology and innovation to position Kano State as a beacon of progress in Nigeria and beyond. As Africa’s youth population surges, Kano, rich in culture, commerce, and human capital, is uniquely poised to harness this demographic dividend by embracing technology as a catalyst for economic growth, social equity, and sustainable development.  

Your Excellency, I recognise and commend your commendable efforts and those of the Kano State Ministry of Science, Technology, and Innovation, under the visionary leadership of the Honourable Commissioner, in laying the groundwork for transformative projects already in the pipeline. The recent establishment of the Kano State Information Technology Development Agency (KASITDA) is a particularly strategic leap forward, signalling the state’s resolve to institutionalise tech-driven growth. These efforts are a critical foundation, and I urge sustained momentum to ensure their timely execution. 

The recommendations outlined herein aim to complement and accelerate these existing plans, providing additional frameworks to attract global partnerships, amplify local talent, and unlock scalable opportunities. By building upon the Ministry’s initiatives and KASITDA’s mandate, Kano can fast-track its rise as a regional leader in technology-driven development.  

Why Technology Matters

Technology is not merely a tool but a foundation for modernisation. It drives efficiency, creates jobs, and bridges gaps in education, healthcare, governance and more. For Kano, where over 60% of the population is under 25, investing in tech equips our youth with skills to compete globally while addressing local challenges like unemployment, agricultural productivity, and access to public services.  

Globally, nations such as Rwanda and India have demonstrated that prioritising tech ecosystems can spur prosperity. Closer home, Lagos’s emergence as a start-up hub highlights the power of deliberate policy and infrastructure. Kano, with its strategic location, historical significance, and entrepreneurial spirit, can surpass these models by tailoring solutions to our unique context.  

A Blueprint for Transformation

To unlock this potential, I propose the following actionable initiatives:  

1. Establish Kano Tech City

Create a dedicated innovation district with co-working spaces, labs, and incubation hubs. Partner with organisations like Google, Alison – Free Empowerment Platform, Microsoft Africa, Altmentor and more to offer training, mentorship, and funding access. This ecosystem will nurture startups in EdTech, AgriTech, FinTech, HealthTech, etc, sectors critical to Kano’s economy.  

2. Revolutionise Education

Integrate digital skills into school curricula. Launch “Kano Code Clubs” and sponsor scholarships for students pursuing careers in STEM fields. Collaborate with Universities to offer advanced degrees in emerging technologies, ensuring a pipeline of skilled talent.  

3. Upgrade Infrastructure

Prioritise broadband expansion, especially in rural areas, and deploy solar-powered tech centres to overcome energy challenges. Reliable internet and electricity are non-negotiable for attracting global investors.  

4. Enact Innovation-Friendly Policies

Offer tax breaks for tech start-ups, streamline business registration, and establish a regulatory sandbox for testing solutions. Launch a Kano Innovation Fund to provide grants and venture capital. Some Innovation-Friendly Policies are outlined below;

-Tax Incentives & Financial Support

• 5-Year Tax Holiday: Exempt early-stage start-ups (0–3 years) from corporate income tax, PAYE, and land use charges. 
• Investor Tax Exemptions: Offer 100% capital gains tax relief for investments in Kano-based tech start-ups. 
• R&D Grants: Fund 50% of R&D costs for startups in priority sectors (AgriTech, EduTech, renewable energy).
• Kano Equity Fund: Establish a state-backed venture capital fund to co-invest in high-potential startups, matching private investments 1:1.  

-Ease of Doing Business

• 24-Hour Start-up Licensing: Create a dedicated tech desk at the Kano Investment Agency to fast-track business registration, licenses, and permits. 
• Regulatory Sandbox: Allow start-ups in FinTech, HealthTech, and mobility to test products for 12 months without full regulatory compliance. 
• Land Grants: Allocate subsidised land in Kano Tech City to start-ups and investors who commit to hiring at least 60% local talent.

-Talent & Immigration

• Tech Talent Visa: Partner with the Federal Government to expedite visas for foreign founders, engineers, and investors relocating to Kano. 
• Residency Rebates: Offer 50% discount on residency fees for startups that train and hire 100+ Kano youths annually.  

-Market Access & Growth

• Government Procurement Quota: Mandate 20% of state procurement contracts (e.g., e-governance tools, agri-supply chains) to be awarded to local tech startups.
• Export Incentives: Subsidise Saas (Software-as-a-Service) startups to scale across Africa by covering 30% of their cross-border marketing costs.  

-Investor Confidence & Exit Opportunities

• Investor Matchmaking: Host quarterly pitch sessions connecting startups with angels and global VC networks.
• Acquisition Support: Legal and financial advisory subsidies for startups exiting to foreign or local acquirers.  

-Sector-Specific Boosts

• AgriTech Subsidies: Free state-owned farmland for AgriTech startups piloting IoT-enabled irrigation or crop-monitoring drones.
• AI Ethics Framework: Develop Nigeria’s first state-level AI governance guidelines to attract ethical tech firms and global grants.  

-Long-Term Stability

• 10-Year Policy Guarantee: Legislate a “Kano Innovation Charter” to lock in incentives beyond political cycles, ensuring investor confidence. 
• Kano Tech Ambassadors: Appoint youth innovators as global ambassadors to showcase success stories in international media.  

5. Host Annual Tech Conferences

Showcase Kano’s potential through events like “Kano Innovates,” attracting investors, entrepreneurs, and thinkers. Celebrate local success stories to inspire a culture of innovation.  

Attracting Investment

A thriving tech ecosystem signals stability and opportunity. By cultivating homegrown talent and infrastructure, Kano will attract investors seeking opportunities in untapped markets. Public-private partnerships can further de-risk investments, while success stories will generate organic interest.  

A Call to Legacy

Your Excellency, this vision demands bold leadership. Imagine a Kano where farmers use drones to monitor their crops, artisans sell their products globally via digital platforms, and students use AI to solve community problems. Championing this agenda will secure Kano’s place as a hub of African innovation, creating jobs, reducing poverty, and inspiring generations.  

The time to act is now. Let us collaborate with stakeholders, businesses, educators, and youth to build a Kano that leads, not follows.  

Abubakar Sadiq Umar writes from Kano and can be reached via email at aserdeeq@gmail.com

By Abubakar Idris

As Nigeria celebrates International Youth Day 2024, the nation finds itself at a pivotal moment in its journey towards sustainable development. This year’s theme, “From Clicks to Progress: Youth Digital Pathways for Sustainable Development,” resonates deeply with Nigeria’s demographic reality. With over 60% of our population under 25, the country is uniquely positioned to harness its youth dividend in the digital age.

The Nigerian tech ecosystem is flourishing, driven by the ingenuity and determination of its young innovators. From fintech to health tech, agritech to civic tech, young Nigerians leverage digital tools to address pressing societal issues and contribute to sustainable development. Their efforts are transforming various sectors of the economy and positioning Nigeria as a hub for technological innovation in Africa.

In the fintech sector, companies like Flutterwave, co-founded by Iyinoluwa Aboyeji, have revolutionised digital payment solutions across Africa, facilitating economic growth and financial inclusion. Similarly, PiggyVest, founded by Somto Ifezue, Odunayo Eweniyi, and Joshua Chibueze, is reshaping how young Nigerians save and invest, promoting financial literacy and security. Fara Ashiru Jituboh’s Okra is another standout, providing data infrastructure that enables secure and seamless financial transactions by connecting bank accounts to various financial services.

The health tech sector has also seen remarkable innovations. LifeBank, founded by Temie Giwa-Tubosun, is tackling the critical issue of blood shortages by connecting blood banks with hospitals and clinics. Tito Ovia’s Helium Health is streamlining hospital administration and patient care, improving the efficiency of healthcare delivery across the country. Meanwhile, Ifeoluwa Dare-Johnson’s Healthtracka offers at-home lab testing services, providing Nigerians with accessible and affordable healthcare options.

In the agricultural sector, youth-led digital transformation is crucial to Nigeria’s economy and is making significant strides. Farmcrowdy, founded by Onyeka Akumah, is an innovative agritech platform that connects farmers with investors and markets, boosting productivity and livelihoods in rural areas.

As we celebrate these success stories, nurturing the next generation of innovators is crucial. Initiatives like Andela, founded by Iyinoluwa Aboyeji, are pivotal in this regard. By providing world-class training to young developers, Andela is creating job opportunities and building a robust talent pipeline for Nigeria’s tech industry. Similarly, CodeLn and Devcenter equip young Nigerians with the skills to thrive in the digital economy.

The push for sustainable development through digital innovation must be inclusive. Women in Nigeria’s tech industry are breaking barriers and setting new standards for excellence and impact. Fara Ashiru Jituboh’s work with Okra makes financial data more accessible, directly addressing the challenges of financial inclusion that many Nigerian women face. Tito Ovia’s role at Helium Health is particularly significant in a sector where women often have limited access to healthcare. Ifeoluwa Dare-Johnson, through Healthtracka, addresses the often-overlooked need for accessible and affordable healthcare.

While these examples showcase the immense potential of Nigerian youth in the digital space, many challenges remain. Access to reliable internet, consistent electricity, and affordable devices are hurdles for aspiring innovators, especially in rural areas. However, these challenges also present opportunities for further innovation and problem-solving.

The Nigerian government has recognised the importance of digital innovation for sustainable development. The National Digital Economy Policy and Strategy (2020-2030) and the Nigeria Startup Act (2022) are significant steps towards creating an enabling environment for tech startups and young innovators. The Act includes provisions for a Startup Investment Seed Fund, tax incentives for startups and investors, capacity-building initiatives in higher education institutions, and streamlined regulatory processes for startups.

Practical initiatives like the NCC Technology Hub, launched by the Nigerian Communications Commission, are also crucial in nurturing digital innovation. This hub serves as an incubator for tech-driven ideas, providing a supportive environment for young Nigerians to turn their innovative concepts into reality.

As we look to the future, it’s clear that fully realising the potential of Nigerian youth in digital innovation will require continued effort and investment. Improved infrastructure, education reform to include digital skills and entrepreneurship training, increased funding for youth-led startups, mentorship programs, and supportive policies are all crucial elements in creating an environment where digital innovation can thrive.

On this International Youth Day, we celebrate the achievements of our youth and recognise their role as leaders in the global digital revolution. The journey “From Clicks to Progress” is well underway, with young Nigerians leveraging technology to tackle some of the nation’s most pressing challenges. Their creativity, resilience, and determination are the driving forces that will lead Nigeria toward a brighter, more sustainable future.

As we move forward, let us continue to empower and support our youth, ensuring that Nigeria keeps pace with global technological advancements and leads the way. The future of sustainable development in Nigeria is digital, and it is in the capable hands of our youth. Their innovative spirit promises progress and a transformation that will resonate for generations to come.

Abubakar Idris wrote via abkidris99@gmail.com.

By Salisu Uba, PhD, FCIPS

In Nigeria, especially in the North, the time is ripe for successful entrepreneurs and business leaders to forge an alliance and spearhead investment in the burgeoning startup ecosystem. By forming angel syndicates to venture capitalists, we can create a robust foundation for attracting substantial investment not only from within Nigeria but also from across the globe. This aligns with locally supported startups through investment, addressing market fit and confidence in the business model, especially if the solution is locally targeted.

Why is this crucial?

Firstly, establishing angel syndicates allows us to tap into the wealth of knowledge and experience possessed by seasoned entrepreneurs. Imagine having a syndicate of angels across all states investing in and mentoring startups and small businesses; this could lead to more successful ventures, social impact, and job creation. Typically, when you have resources and skills in business, it becomes an avenue for addressing challenges and opportunities within the startup landscape, making it a source of invaluable mentorship for emerging businesses.

Secondly, starting with angel syndicates incentivizes the process of attracting more venture capitalists, signifying a maturation of the investment ecosystem. It’s important to understand that venture capitalists bring not only financial backing but also strategic guidance and access to extensive networks, propelling startups towards rapid growth and scalability.

I am glad that some folks are forming partnerships and have come up with venture labs funding. However, my question is how effective this is, especially when we don’t get updates about the deals they have closed? I want to be positive, as a typical round of investment can take anywhere from 3-7 months.

Furthermore, without adequate funding, promising startups risk stagnation or even relocation to more investment-friendly destinations. Incorporating in these alternative jurisdictions not only deprives Nigeria of potential economic growth from the ecosystem but also undermines the socio-economic development of the country offered by the startups.

Lastly, to catalyze this transformation, heightened awareness and targeted training programmes are essential for our successful entrepreneurs and business leaders. Educating successful entrepreneurs on the benefits and mechanisms of investing in the startup ecosystem will empower them to become active participants in driving innovation and economic prosperity.

Business schools in Nigeria should come up with tailored programmes on startup investment opportunities and the future of sustainable business practices. Our revenue houses should perhaps create incentives for high net-worth individuals when participating in investment in startups or small businesses.

I am absolutely certain that Nigerian entrepreneurs and business leaders should be engaged in creating a network of angel investors to invest in the startup ecosystem. We can foster a culture of innovation, drive economic growth, and position Nigeria as a leading player in the global startup landscape. Now is the time to act, to seize the opportunity, and to realize the full potential of Nigeria’s entrepreneurial spirit.

I am sure platforms like Startup Arewa, NITDA, Ministry of Finance, FIRS, and many other stakeholders can facilitate a dialogue and create a conversation around my proposition.

Salisu Uba, PhD, can be reached via salisuuba@ymail.com.

By Salisu Uba, PhD FCIPS

I have read some devastating news over the last couple of weeks in relation to the ecosystem in Africa, some promising startups are shutting down operations. I am sure the recent events will affect any potential investments in our startups.

I want to address some concerns around two contrasting paths that often emerge: the allure of rapid growth without immediate profitability versus the steadier route of slower growth with assured profits. Let’s explore these models and the lessons they hold for startups in attracting investment.

High Growth, No Profit: the temptation of business sprinting towards expansion, capturing attention with its rapid growth but yet to turn a profit (wework case study). These ventures entice investors seeking significant returns. They prioritize scaling up, seizing market shares, and envisioning a lucrative future, often emphasizing customer acquisition over immediate profitability.

Slow Growth, Steady Profits: the assurance one perhaps, on the other side, is progressing at a more measured pace prioritising sustainable growth and consistent profitability. While not racing ahead in growth, they maintain stability, focusing on operational efficiency, nurturing loyal customers, and ensuring profitability from the outset.

Investment Magnet: the high growth appeals to investors as it favours the high-growth model due to its potential for explosive returns. African startups are promising and bustling markets, venture capitalists are scouting for opportunities everywhere, and the allure of substantial growth can overshadow concerns about immediate profits, maybe! However, sustainable profitability forms the backbone of long-term success, offering stability even in market downturns (don’t aim for what’s not realistic).

Learning from Both Models: from experience, the winning formula for our startup founders is to glean invaluable lessons from both models. By embracing the innovation of high-growth ventures and adopting prudent financial practices from profitable businesses, a potent combination can emerge. Striving for growth with an eye on achieving profitability can attract investors while ensuring long-term viability.

Striking the balance between growth and profitability is to find the equilibrium between high growth and profitability. It involves building a robust foundation for scalability while ensuring financial viability in the long run. This hybrid approach could be the linchpin to captivate venture capitalists eyeing the burgeoning African startup landscape, offering excitement and stability in equal measure.

Perhaps as we always aim to make a positive impact and make economic progress, investment is key to a successful venture. Therefore in the quest for investment opportunities, startup founders and entrepreneurs should combine the dynamism of high growth with the solidity of profitability.

Salisu is a fellow of the Chartered Institute of Procurement and Supply (CIPS) and a member of the CIPS Education Committee in the UK. He is the founder and CEO of NarQuest Limited – a supply chain technology company based in Glasgow, UK.