Report links cumbersome terms of procurement process to MSMEs access to FG contracts
A new report commissioned by Google, in collaboration with Ventures Platform Research, titled: ‘Tech Entrepreneurship Ecosystems Research – Nigeria’ has linked observed failures of MSMEs to access and execute government contracts.
The report further provided in-depth analysis of the key trends and challenges faced by local technology entrepreneurs, and suggest policy recommendations for addressing these challenges.
The key position of the report is that time has come for the government to be serious in driving economic diversification using the ICT sector and advised that “concentrating on stimulating market potential, improving the skill set of Nigeria’s youths, making sustained early stage funding available, and reviewing regulations that inhibit the growth of technology start-ups will support the growth of the sector and engagement of several unemployed youths who have invested much in IT.
According to the report, the requirements for a three-year financial audit, tax certificates and minimum number of years of experience were major challenges for start-ups looking to participate in government tenders.
The report therefore called on the Federal Government to review the regulations inhibiting the growth of technology start-ups as this was vital to supporting the growth of the sector.
Earlier in her remarks during the presentation of the report, the Minister of State for Industry, Trade and Investment, Mrs. Aisha Abubakar, said such studies were critical for innovation and developing new policies.
In her submission, she averred that the Federal Government was aware of many of the challenges facing small businesses in Nigeria, adding that fresh policies were being formulated to address them.
She noted that “We see the creativity and ingenuity of our Micro, Small and Medium Enterprises, and believe that with the right enabling environment, they can thrive and prosper.
“Operating optimally, MSMEs can effectively utilise our local raw materials, generate employment, encourage rural development and stimulate entrepreneurship, thereby creating wealth.
“The importance of research into the tech entrepreneurship ecosystem cannot be over-emphasised as it will provide policymakers with the tools to manage and leverage digital disruption.”
During the presentation, Google Policy and Government Relations Lead, Titi Akinsanmi, argued that “While the technology ecosystem in Nigeria is fast gaining momentum, local technology start-ups struggle with scaling-up their work due to social and policy structures.
“Providing informed and independent research like this helps to educate stakeholders on the challenges and how they can be addressed.”
