NITDA Works to Curb Capital Flight from Imported Technology, Loses 720b Naira/$2b

The National Information Technology Development Agency (NITDA) has disclosed a rapid outflow of approximately N720b, attributed to the impulsive importation of foreign technologies. This disconcerting trend has been spurred largely by the current political uncertainty and volatility of the nation’s banking system. In response, NITDA has committed to reducing this excessive capital flight undermining the country’s economy.

In his appeal towards nurturing local innovation, the Director General of NITDA, Dr. Isa Pantami, championed the adoption and promotion of home-grown technology solutions. This clarion call was made at the recently concluded Gulf Information Technology Exhibition held in Dubai. Dr. Pantami emphasized that Nigeria’s potential in Information Communication Technology (ICT) should place it alongside other prominent nations on the global ICT map.


Caption: Director General, NITDA, Dr. Isa Pantami

In a bid to showcase home-grown talent, Ten Nigerian technology start-ups had significant representation at the exhibition. These included; Coudiora, Nicademia, Beat Drone, Accounteer, Dropque, MTK, e Learning Portal, My Padi, Ward Monitor, Tettara and Six Internet of Things. These promising startups are preparing to compete globally for a grand prize of $30,000 (N10.8m), aimed to fuel and support entrepreneurial aspirations in the technology sector.

Unfortunately, this prize pales in comparison to the astounding amount the country lost to capital flight from imported technologies. Dr. Pantami noted that the technology agency is committed to plugging these financial leaks through proactive measures including stringent policies and laws to prevent such damaging losses. Funds recouped from these efforts will be channeled towards developing the ICT ecosystem in Nigeria, ensuring benefits to startups and boosting existing IT industries.

Currently, NITDA is partnering with the Economic and Financial Crimes Commission to eradicate fraudulent practices masquerading as ‘ICT projects’. It is absurd and wasteful to procure IT materials from remote sources when there are reputable IT companies within the country. The enforcement of NITDA Act is expected to prevent illegal capital flight.

To further tighten regulations, all Ministries, Departments, and Agencies (MDA) are required to get approval from NITDA before embarking on any projects. This oversight is aimed at ensuring that proposed projects are achievable and economically viable. A recent audit of one such MDA project resulted in a savings of about N500m, thanks to this regulation.

On a promising note, lawmakers have signaled their readiness to implement tax holidays for tech startups. This motion, if carried through, could provide a significant boost to Nigeria’s tech ecosystem, driving innovation and increasing the nation’s global ICT standing. A progressive step, which, if adhered to, ensures the country’s technology industry teems with thrilling exploits.