The relationship between Nigeria's vibrant tech ecosystem and its government has long been characterized by complexity and tension. This dynamic largely stems from recurring attempts by the government to assert control over the multi-billion-dollar industry through extensive policy frameworks and regulations, prompting many tech players to express concerns about overregulation stifling innovation.

Although Nigeria’s tech space has attracted significant international attention for its achievements, regulatory uncertainty and excessive oversight remain major impediments to sustained growth.

This situation underscores the urgent need for deeper collaboration and sustained dialogue between technology stakeholders and regulatory bodies.

Bridging the Gap Between Policymakers and Tech Practitioners

In a recent discussion as part of the "Policy and Tech" series, Technext engaged Oswald Osaretin Guobadia, Senior Special Assistant to President Muhammadu Buhari on Digital Transformation. Guobadia, widely regarded as a principal architect of the Nigeria Startup Act (NSA), emphasized that the future success of the Nigerian tech ecosystem depends largely on the active participation of its players rather than on government intervention alone.

He noted that the existing gaps in the regulatory environment are primarily the result of insufficient collaboration between policymakers and ecosystem practitioners.

According to Guobadia, a fundamental disconnect persists between both parties. While tech practitioners prioritize disruption, speed, efficiency, and innovation, policymakers often interpret these developments as displacement and a threat to established structures.

Without meaningful engagement, policymakers—tasked with safeguarding the status quo—tend to introduce measures aimed at managing this perceived disruption, resulting in policies that the tech ecosystem frequently views as restrictive.

Guobadia identified this lack of co-creation as the root cause of many regulatory challenges facing Nigerian startups.

Addressing the intersection of innovation and regulation, Guobadia advocated for a collaborative framework that enables the co-creation of policies and regulations, a principle explicitly embedded in the Nigeria Startup Act.

Guobadia acknowledged the presence of overregulation and regulatory overreach but maintained that these challenges can be significantly reduced through genuine partnership.

He observed a widespread reluctance among tech leaders to engage with government ministries, departments, and agencies (MDAs), a stance "us versus them" mentality.

Empathizing the need for mutual understanding, Guobadia urged practitioners to recognize policymaker as fellow Nigerians and stressed that meaningful collaboration is essential for the ecosystem’s long-term success.

Institutionalizing Collaboration Through the Nigeria Startup Act

The Nigeria Startup Act (NSA) seeks to formalize this critical engagement between the government and the tech ecosystem. Central to the Act is the establishment of the Startup Consultative Forum, which is composed of representatives from the practitioner community.

This body is complemented by the Secretariat, made up of all relevant MDAs. Together, these entities form the core pillars of the National Council for Digital Innovation and Entrepreneurship.

This institutional framework enables continuous interaction between practitioners and the Secretariat on ecosystem-related matters, allowing stakeholders to influence the Council’s agenda and ensure that policies are shaped by a practical understanding of the tech landscape.

The overarching goal is to foster a collaborative environment where policymakers are brought closer to the ecosystem, gaining insights into its operations and actively contributing to the success of startups.

Despite the innovative framework of the NSA, a significant challenge remains: the deep-seated mistrust many tech players harbor towards the Nigerian government.

Guobadia cautioned against the danger of such mistrust, emphasizing that the government remains a permanent stakeholder in the ecosystem.

He noted that the NSA itself is a product of extensive collaboration, revealing that approximately 99% of its provisions were contributed by practitioners rather than the government.

Drawing on his decades of experience in the private sector prior to entering policymaking, Guobadia acknowledged past instances of government overreach and perceived competition with startups.

However, he reiterated that these challenges are far less likely to occur when consistent collaboration and constructive pressure from the ecosystem are prioritized.

Guobadia urged tech leaders to abandon the “I don’t trust the government” narrative and instead recognize their integral role within the broader governance framework.

He highlighted that political will is often shaped by public sentiment, and a passionate, engaged tech ecosystem has the power to influence politicians to support rather than hinder its growth.

In a stark warning, he asserted that the ultimate success—or failure—of the Nigeria Startup Act (NSA) rests in the hands of practitioners if they fail to actively participate in its implementation.

Ensuring Active Engagement for the Success of the Nigeria Startup Act

Since becoming law in October, questions have arisen regarding the progress of the NSA’s implementation.

Guobadia clarified that responsibility lies with the Honourable Minister of Communications and Digital Economy, Prof. Isa Ali Pantami, and the National Information Technology Development Agency (NITDA), which serves as the Council’s Secretariat.

While he described the Act as “self-implementing,” he acknowledged that its actual progress has not matched the speed of its development.

Crucially, Guobadia emphasized that the ecosystem has both the right and the responsibility to demand accountability from the government regarding the Act’s implementation. Unlike policies or regulations that can be easily altered, an Act is a binding law.

One of the Council’s key powers, as defined in the NSA, is the requirement for its approval before any new policy affecting the ecosystem can be introduced—providing an essential safeguard for startups.

However, without proactive engagement and oversight from practitioners, this mechanism risks being underutilized and progress could stagnate.

To promote adoption at all levels, the Nigeria Startup Act programme office, led by Guobadia, is actively encouraging individual states to implement the Act, envisioning a future where states compete on policy to foster innovation at the grassroots level.

Reflecting on Nigeria’s journey toward digital transformation, Guobadia offered a nuanced perspective: “potentially closer but also potentially very far away.”

He stressed that digital transformation cannot be led by “paper-minded people” and underscored the importance of placing capable individuals in positions of authority.

Furthermore, he challenged the tech ecosystem to participate actively in the political process, even suggesting that they could lobby for the appointment of future Ministers of Communications and Digital Economy.

Guobadia emphasized that sustained progress requires active involvement. Leadership within the tech ecosystem must adopt a proactive stance, mobilizing collective collaboration with the government, as the nation’s digital future is inherently tied to such partnerships.

Looking ahead, he expressed immense optimism for the Nigerian tech ecosystem, declaring, “We are positioned to take over the world.”

He envisioned a future where the next globally impactful innovation could emerge from a Nigerian village, provided foundational elements—education, infrastructure, and sound policies—are effectively addressed.

With the Nigeria Startup Act already establishing the necessary policy framework, attention must now shift to strengthening education and infrastructure.

Guobadia downplayed the threat of the “Japa trend” (brain drain through emigration), advocating instead for greater investment in training to cultivate a robust talent pool. He even encouraged the strategic export of skilled professionals, citing India’s success in leveraging its diaspora as a global advantage.

He further highlighted that “the new poverty line will be in the same space as the digital line,” emphasizing that digital literacy and empowerment are essential for citizens to thrive.

While the future is promising, Guobadia stressed that realizing its potential requires deliberate action, intentional planning, accelerated infrastructure development, and, most critically, visionary leadership to ensure that the rewards of digital transformation are fully realized.