The American Business Council (ABC) has underscored role of enabling environment and access to capital in propelling startup growth in Nigeria.
Speaking at an event with the theme “Navigating the Startup Landscape in Nigeria amidst Economic Challenges,” Senior Foreign Service Officer at the United States Consulate Lagos, Michael Ervin, said “there is  a need for environment that fosters risks, access to capital for startups to thrive.” Experts were there to explore strategies for overcoming obstacles and utilising the Nigerian Startup Act.

Ervin said startups were job-creating machines, which might be small at first, “but their growth potential is tremendous and that they hire local talent injecting a surge of energy and opportunity into our communities.

“They tackle some of the most pressing challenges that confront us from climate change, to access to health care, to feeding our families and future. They develop solutions that improve lives and leave a lasting impact. So, they’re not just building businesses, they’re building a movement, creating jobs, painting future, future-proofed jobs, the architects of tomorrow. But more than that, you’re creating a cultural candidate. I believe that anything is possible with the right idea.”

“These are the heroes we celebrate here today and every day and their success stories inspire a generation they show us that we don’t have to wait for change but we are and are all a part of that change.

He said there would be setbacks,  failures, but even though it was their stepping stone, every failed startup is a lesson learned. He added that every failed startup is a valuable data point in the ever-evolving map of innovation and that It is the spirit that matters, the relentless pursuit of innovation of progress, the unwavering belief in a better tomorrow.

Emphasising the vital force for social well-being and economic development, he said: “We need an environment that fosters risk. We need access to capital for these young companies. We need to celebrate not just the successes, but the journey itself.

“The audacious spirit that dares us to dream big realising all of this, the US mission, and the American Business Council, launched in October of 2023, and associate membership category for US incorporated startups in many to a community of established local businesses where opportunities can be extended.

He urged all startups registered in the United States to join the American Business Council and leverage the opportunities that exist there. Ervin added that the United States has been committed to fostering collaboration with Nigeria across the sectors of agriculture, education, health care, power technology, and other vital areas for development and economic growth.

“US venture capital firms have invested heavily in African tech startups with over 60 and 40% of venture capital. funding in Nigeria and Africa, respectively, coming from the United States, up to 60% of African startups are incorporated in the United States and this figure jumps to 80% when considering Nigeria alone. In 2022, African startups raised $4.6 billion dollars, translating to an average of over $1 million every two hours,” he noted.

Speaking about the theme of the event, the commissioner for Commerce, Cooperatives, Trade, and Investment in Lagos State, Folashade Ambrose-Mebedem, said Lagos State is working with a number of private sector, formidable partners such as  American Business Council, Eco bank and others
 
“It is really about trying to understand how they can better thrive. We talked about some of the facts that the loans that they take out are in Naira and how a lot of it can try to be domesticated because when you think about Silicon Valley and how much money they’re trying to get in terms of raising seed funding for Series A, Series B, et cetera, how can we make sure that it’s actually been enabled in a local currency how can they be more agile, how can they diversify? How can they leverage the power of networks of their investors, so, these are some of the conversations,” she said.
Chief executive officer of ABC, Magaret Olele, said it is not all about looking at the problems or challenges in Nigeria, it’s about looking at the opportunities and how to tap into them.

Olele emphasised their dedication to fostering a thriving startup ecosystem, noting that ABC actively seeks out promising startups, listens to the obstacles they face, and connects them with valuable resources which includes both government agencies and potential business partners to help them flourish and scale their operations.

“We need to be intentional about where the opportunities lie, and see how we can leverage every growth lever in these areas to improve,” she said.
Acting National Coordinator, Office for Nigerian Digital Innovation, National Information Technology Development Agency (NITDA), Yakubu Musa said: “In a nutshell, we have received so far over 12000 start-ups registration”

Head, Global Corporate Division, Ecobank, Omoboye Odu emphasised the importance of understanding the economic landscape and building resilient businesses leveraging technology and networks to navigate the challenging world of Nigerian startups.

“We are committed to providing crucial financial support mentorship and access to a vast network of potential customers. Our partnership with the American Business Council obviously, is a direct reflection of this commitment, she said.