Lagos Unveils Ambitious ₦31 Billion Innovation Fund to Supercharge Startups and Tech Hubs
In a groundbreaking move set to significantly bolster its burgeoning tech ecosystem, the Lagos State Government is poised to inject a substantial ₦31.07 billion (approximately $20.26 million) into its innovation landscape. This landmark commitment, outlined in the draft Lagos Innovation Bill, signals a strong intent to nurture local talent and accelerate technological advancements across the region. The proposed funding aims to provide crucial financial backing for a wide array of beneficiaries, including innovative startups, dynamic innovation hubs, cutting-edge accelerators, dedicated researchers, and individuals or businesses actively developing inventive products within Nigeria’s bustling economic hub.
Catalyzing Growth with the Research and Development Innovation (RD&I) Fund
The foundation of this ambitious initiative is the proposed Research and Development Innovation (RD&I) fund. This significant capital injection is set to be drawn from 1.5% of the state’s projected ₦2.07 trillion ($1.35 billion) capital expenditure in its 2025 budget, demonstrating a strategic allocation of public funds towards future-forward sectors. The RD&I fund is designed with a multifaceted approach: it will finance critical research projects, support the establishment and growth of innovation hubs and tech parks, and provide essential risk capital to promising businesses. Beyond the initial state allocation, the fund is envisioned to grow through diverse revenue streams, including donations, grants, specifically issued innovation bonds, royalties, and other identified income sources, ensuring its long-term sustainability and impact. The Lagos State Government’s commitment is further underscored by a pledge within the draft bill to allocate “no less than 1.5% of its annual budget to the RD&I Fund and the development of science, technology, research, and development annually,” with plans for this allocation to progressively rise to 2% within ten years of the bill’s enactment, cementing a sustained investment in the sector.
This strategic financial commitment from the Lagos State Government represents a pivotal moment for the Nigerian and indeed, the broader African tech ecosystem. By establishing a dedicated and robust innovation fund, Lagos is not merely providing capital; it is actively cultivating an environment where creativity, research, and entrepreneurial spirit can thrive. This initiative is expected to drive economic diversification, create high-value jobs, and position Lagos as a leading innovation powerhouse on the continent, attracting further investment and talent to its vibrant tech scene.
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