National Information Technology Development Agency (NITDA), has called on financial institutions in the country to increase lending access for Small and Medium Enterprises especially Startups in the Financial Technology (FinTech) ecosystem in order to promote financial inclusiveness in the country.
The need for the intervention was attributed to the fact the that traditional banks’ lending process have long been a barrier to assessing finance for SMEs in Nigeria which is negatively impacting the operations of the SMEs, adding that the banks need to come up with innovative ideas to assist vulnerable SMEs in the era of COVID-19 that is plaguing the world. .
The Director General of NITDA, Mr. Kashifu Abdullahi who made the appeal in a Webinar organised by FinTech Association of Nigeria with the theme: “COVID-19: Enabling Speedy Business and Economic Recovery Through Regulations”, said that the COVID-19 pandemic has disproportionately impacted SMEs around the world, Nigeria inclusive.
He, however, noted that government is providing different types of interventions and palliatives but Financial Technology is not being employed optimally for disbursement.
He added: “our interventions are to help lead the tech startups from crisis to recovery as well as support them to navigate today’s challenging business landscape.”
While reiterating the promise of President Muhammadu Buhari’s administration to lift 100 million Nigeria out of poverty in 10 years, Abdullahi expressed optimism that government would support investment in startups to create jobs and future prosperity for all.
He explained that, NITDA as an Information Technology regulator in the country with twin mandates to regulate and develop the sector, had designed initiatives meant to provide a secure base for startup ecosystem with inclusion of FinTech startups.
He said that immediately the government pronounced the lockdown, NITDA constituted a 10-man committee named Tech4Covid with objectives to identify innovative solutions to address the pandemic; provide enabling policies and incentives to cushion the impact of the pandemic; and build massive digital skills to reskill the region to leverage technology in different sectors.
On funding for the innovative ideas of the startups, the NITDA DG recalled that the Minister of Communications and Digital Economy, Dr Isa Pantami has directed all parastatals under the supervision of the ministry to set up an Innovation Research Fund for the startups, and NITDA is equally working with Bank of Industry, BOI, to give consideration to IT startups in accessing funding.
The DG further stated that the Agency is also supporting the IT hubs in the country by implementing the recommendations submitted by Tech4Covid committee on hubs’ support during and after the pandemic and had also developed innovation porter that would serve as database for innovation and entrepreneurship ecosystem.
He listed some of the policies the government has put in place to assist the startups to include the National Outsourcing Strategic policy, Nigeria Data Protection Regulation, Reviewing of Framework and Guideline for the Use of Digital Platform by Federal Public Institutions, and the National Cyber Security Policy.
Chairman, Africa FinTech Network, Mr. Segun Aina, described the agency as a great pillar of support which has been reliable in providing fund for FinTech in Nigeria. He said, “although most of the funding come from outside the country but regulatory agencies like NITDA have been very helpful in assisting the FinTech industry.
He said that the Association is embarking on advocacy and support for the startups in 32 African countries and assisting them to access funding from organisation like African Development Bank.
In a remark, another speaker, Mr. Sopnendu Moharty, said that African needs to prioritize the new normal by leving that “COVID-19 has given us opportunity to rethink.
According to him, for economy to survive the pandemic, there is need for people to leverage on IT. “We need to digitise everything and you can’t argue with the fact that if you don’t digitise you will die.