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Regional Innovation Hubs in Nigeria:
Programme Design and Implementation Framework
March 2016
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Contents
• Introduction
• Programme Design
• Implementation Framework
• Conclusion
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Introduction
The aim of this document is to provide a concise design and framework for the creation of Regional Innovation Hubs across the country.
The Hubs will serve as catalysts to move the Nigerian economy to become a Knowledge driven/smart economy.
This is capable of rapidly accelerating industrialization by training and serve as talent acceleration points for young Nigerians in technology driven sectors of the economy including Digital & Innovative Solutions, Professional Services, Manufacturing and Agro-allied Technologies.
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• To fast-track industrialization in Nigeria by attracting Venture Capital, Manufacturing and Service organizations.
• To provide training for a wide range of technology-related skills, empowering youths for entrepreneurship and employment.
• Providing a digital economy platform at an Entrepreneurial level with support from Venture Capitals by creating an enabling environment for foreign direct investment and company set-up.
• To create job opportunities for the teaming population of tech savvy youths within a knowledge driven economy with innovative solutions.
• To establish Nigeria as an IT-driven, professional services, manufacturing & agro-allied processing outsourcing hub, thereby creating millions of jobs.
Objectives of the Innovation Hubs Programme
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Proposed Strategic Partnerships
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Programme Design6
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Programme Design
• Industry Sectors
• Training Approach
• Proposed Locations
• Hub Structure and Role of Stakeholders
• Digital Economy One Stop Hub
• One Stop Business Establishment Portal
• Hub Management Company
• Overall Value Proposition
• Key Success Factors
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Industry Sectors
Digital/Innovative Solutions
• Web/Mobile Development
• Graphics/Web Design
• 3D Animation/Game Development
Professional Services
• Call Centre/Back Office Operations
• Shared Service Centres (HR. Accounting, Book Keeping)
• Logistics/Haulage
Tech-Driven Manufacturing
• Metals and Solid Minerals Processing
• Motor Vehicle and Miscellaneous Assembly
• Petro-Chemicals, Fertilizers and Methanol
• Electricals and Electronics
Tech-Driven Agribusiness/Agro Allied Technologies
• State of the art Storage Hubs
• Automated Agro Processing and Packaging
• Big Data and Aginformatics
• Biotechnology and Pharmaceuticals
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Training Approach
Format Anchor companies are high tech companies looking to scale their operations with local talents. The format of trainings would therefore be fast tracked, hands-on and on-the-job, depending on industry type and anchor partners.
The goal would be to:
- rapidly attract young Nigerians with capacity to learn,
- attach them to anchor companies where they acquire relevant skills for themselves and,
- by so doing, increase the organisation’s (and region’s) capacity for outsourcing in the various areas of operation.
Potential Talent Sources
Private Educational Providers
Technical Colleges
Private Universities
Federal and State Universities
Professional Associations
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Proposed Locations
• In selecting locations, preference has been given to cities with high
population (in order to increase the programme’s reach), cities with
existing high levels of technology related commerce and cities with a
major university or university of technology.
• One state was selected in each geo-political zone, besides Lagos and
Abuja which are considered automatic candidates due to the
existing technology cluster in Lagos and potential for governance
related innovation in Abuja.
• Anambra (SE), Cross River (SS), Benue (NC), Kaduna (NW), Osun
(SW), Adamawa (NE), Abuja, Lagos.- Location of Technology Hub
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Lagos
Proposed Area of Focus:
Digital Solutions, Light
Manufacturing, Business
Process Outsourcing
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Abuja
Proposed Area of Focus:
Open Data/Government Innovation
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South West – Osun
Proposed Area of Focus:
Hardware Manufacturing, Business
Process Outsourcing
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South East – Anambra
Proposed Area of Focus:
Digital Solutions, Automobile
Engineering
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South South – Cross River
Proposed Area of Focus:
Educational Technologies, Business
Process Outsourcing
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North Central – Benue
Proposed Area of Focus:
Digital Solutions, Agro-Allied
Technologies
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North West – Kaduna
Proposed Area of Focus:
Digital Solutions, Agro-Allied
Technologies
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North East – Adamawa
Proposed Area of Focus:
Digital Solutions, Agro-Allied
Technologies
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Hub Structure and Role of Stakeholders
Regional Tech Hub
Federal Government
State Governments
Hub Management
Company
FinanciersAnchor
Companies
Venture Capital Firms
Other Tenants
1. Grants renewable land concession with FTZ status to each Hub Management Company2. Provide infrastructure (power, fibre optic internet, access roads etc.) 3. Provides tax holidays and other concessions4. Owns equity in each regions Hub Management Company5. Streamlines administrative procedures (e.g. business registrations, tax payments etc.)
1. Formed via Public-Private (JV) Partnership2. Manages each hub as a Special Purpose Vehicle on
behalf of investors3. Owns and manages government concessions4. Responsible for cost effective and sustainable
management of hubs
1. Grants renewable land concession/Provides land as part of equity contribution
2. Provides payroll tax and other concessions3. Owns equity in their state’s Hub Management Company4. Streamlines administrative procedures (e.g. business
registrations, tax payments etc.)
1. Works with government to provide infrastructure – electricity, fibre optics etc.
2. Provide funding for property and infrastructural development3. Provide technical expertise4. Owns 75% equity in respective state’s Hub Management Company
1. Setup shop within the hub with at least 2,000 initial employees2. Benefit from government concessions and tax holidays3. Provide specialized training to young Nigerians4. Offer job placements to trained youths5. Generate revenue and increase export production
1. Setup shop within the hub2. Benefit from government concessions and tax holidays3. Generate revenue and increase export production
1. Invests in start-ups and other companies within the hubs
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Digital Economy One Stop Hub
The One Stop Hub will be a multi-agency coordinating office for starting and operating a company in Nigeria with implementation starting within the Technology Hubs.
Each agency will second a staff to the centre, following a whole government approach, with the objective of speeding up the establishment and start-up procedures of new technology-driven businesses through the coordination of the three levels of government and the simplification of procedures.
Through the centre, any entrepreneur may start a business in 5 days by completing all procedures–local, state and federal– in a one-stop-shop. The objective of this mechanism is to reduce the number of procedures, encourage the formal establishment of enterprises and increase the ease of doing business.
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One Stop Business Establishment Portal
In order to greatly increase the ease ofdoing business, the Digital Economy OneStop Business Establishment Portal willalso be created.
This would serve as the gateway to allSME-related government services, withthe goal of ensuring that through a singleonline account, all tech-enabledbusinesses will be able to access servicessuch as business licenses, permits andregistrations offered by differentgovernment departments conveniently.
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One Stop Business
Establishment Portal
Partner Banks
Corporate Affairs
Commission
Federal and State Tax
Offices
NEPZA
SMEDAN
Nigerian Customs Service
High Courts
National Information Technology
Development Agency
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Hub Management Company
The Hub Management Company will have the sole aim of managing the hubs, attracting skilled talents, venture capital and entrepreneurs, promoting the activities of the hub and helping companies locate, expand or maintain their operations within the hubs.
It would be run as a private company, made up of highly skilled consultants who can liaise with various stakeholders and effectively evangelise the various benefits of operating from within the hub.
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Industry Specific
Registration Councils
Nigerian Export
Promotion Council
State Tax Offices
Nigerian Customs Service
Nigerian Investment Promotion
Commission
Consultants Consultants
Recep
tion
Desk
NEPZAState High
Courts
Federal Inland
Revenue Service
Partner Banks
Corporate Affairs
Commission
Digital Economy One Stop Hub Hub Management Company
Application/ Notification/ Consultation
Consultation
Nigerian Immigration
Service
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Overall Value Proposition
• Priority access to the One Stop Business Establishment Centre
• Free trade zone status with tax incentives and subsidies
• Excellent infrastructure (constant power supply, high speed internet, world-class data centres etc.)
• Office space at reduced rates
• Provision of financing support/low interest loans
• Cluster effect and shared services
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Student Innovation Centers
• An investment fund designed to invest in and support innovative ideas and start-ups being launched by current or former students of partner universities.
• Partnership with a venture capital fund to invest in ideas from internships and final year projects of students to turn universities to bedrocks of innovation and entrepreneurship.
• Working with university alumni associations to mentor, fund, and nurture to growth ideas and innovations from the universities.
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Implementation Framework
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Implementation Framework
• Implementation Summary
• Implementation Approach
• Implementation Steps
• Timelines
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Implementation Summary
Rapid Implementation Unused/underutilised FG or state owned facilities in each state (e.g. old corporations and complexes) or portions of land in existing Free Trade Zones & Industrial Clusters in urban centres can be earmarked for the programme
Free Trade Zones These would be established as hubs and designated as Free Trade Zones with tax exemptions and other concessions
One Stop Hub A one stop multi-agency coordinating office for streamlining the process of starting and running a company in Nigeria would be created
Foreign Investments Foreign venture capital firms and development funds would be attracted for the development of those hubs
Establish Anchor Companies
Necessary infrastructure would be put in place to ensure ease of establishment and doing business so anchor companies can significantly scale operations
University-Wide Interconnectivity
Linkages would be established with local universities, polytechnics and technical colleges as potential sources of talents
Talent Acceleration Placement of young Nigerians with companies in order to acquire knowledge through training courses and on-the-job trainings will be facilitated.
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Implementation Approach
• 4 Industry Sectors have been identified to have the highest potential for digital job creation – ICT, Professional Services, Tech-Driven Manufacturing, Tech-Driven Agribusiness/Agro Allied Industries.
• Anchor companies in each of the industry sectors and established venture capital firms would be engaged on specific proposals to setup within the Technology hubs.
• Emphasis of proposals would be on programmes in place to ensure anchor companies and venture capital funds can set up easily and integrate into the ecosystem speedily.
• Each hub would focus on any or all sectors depending on regional strengths, availability of raw materials, job creation potential and strategic fit with anchor tenants.
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Implementation Steps
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Engage Stakeholders
Publicise Programme
Sign MOUs with Partners
Phase 1
Phase 2 Phase 3
During this stage, financial partners, anchor partners and other stakeholders would be engaged and buy-in secured, with letters of intent.
During this stage, Phase 1 of the programme is rolled out with Abuja, Lagos and at least 2 other states as pilot states. Constant monitoring and evaluation is carried out.
Lessons learnt from pilot implementation would be incorporated into the roll out plan for other states in different regions with continued monitoring and evaluation.
During this stage, the public announcements are made and the relevant government agencies are given necessary mandates for successful implementation.
During this stage, MOUs and agreements are signed with partners in readiness for programme kick-off.
During this stage, emphasis is on rapidly scaling operations across all regional technology hubs and maximising potential for job creation.
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Timelines
Programme Design and Partnership Discussions
Public Announcement and Aso Villa Demo Day
Kick-off of Phase 1 Kick-off of Phase 3Kick off of Phase 2
2016 2017
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Conclusion
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Conclusion
The Regional Innovation Hubs Programme presents a unique opportunity for a private sector driven framework for rapid industrialization in Nigeria, with massive potentials for job creation.
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For partnership enquiries, kindly contact:Ife AdebayoSpecial Assistant on Innovation & Entrepreneurship,Office of the Vice PresidentPhone: +234 706 551 3275Email: [email protected], [email protected]
