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The managing director/chief executive officer of the Nigerian Sovereign Investment Authority (NSIA), Mr. Aminu Umar-Sadiq, has given insight into the maiden NSIA Prize for Innovation programme.
He explained how the programme, which is structured as a business enhancement initiative, will support early-stage, growth-driven ideas through education, mentorship and financing.
What is the purpose of the NSIA innovation programme and what strategic objectives is it expected to deliver?
The programme is expected to catalyze the growth and development of the Nigerian technology ecosystem by identifying budding techpreneurs, enhancing their capabilities, and providing a platform to showcase and scale Nigerian digital solutions on a global scale, while building a steady pipeline of potential investee companies over the years.
The programme will have a priority focus on the following sectors: Financial services, agriculture, health, education, manufacturing, logistics and e-mobility, e-commerce and marketplaces, renewables and power.
This programme is supposed to catalyze domestic capital for domestic ideas. This is an initiative of the NSIA that does two things for the NSIA. First, it is to put us front and centre in the tech ecosystem of Nigeria and, number two, importantly, is to ensure that those great ideas that Nigerians have find local capital in order to take them from success to significance.
I think this is a very important initiative not only for the NSIA but also for the country in general.
Why are we not considering the idea stage, and what will be the benefits of the initiative to the NSIA?
This will also consider the idea stage, but we have to balance that very carefully with the kind of capital that NSIA manages. NSIA is a conservative capital manager. We manage capital for future generations of Nigerians. So, on the one hand, we will support the tech ecosystem at the pre-sit stage and, on the other hand, we have to ensure that there is real down capital in order to manage the capital for future generations of Nigerians.
It is a very careful act but this is an important sector for the country, particularly the youth, and NSIA must be at the centre supporting it.
How will NSIA select or shortlist winners, what processes are we using in ensuring fairness, objectivity and transparency?
There are three different service providers that we have brought in. The first is the technical service provider that is going to be in charge of the entire process, ensuring there is a website that is going to sieve the ideas. They are going to be in charge of sieving the ideas and leaving the accelerator stage. And, more importantly, they are also going to ensure that the ideas are going to get to the Demo Day and essentially have the requisite basis to present to what will be a fantastic panel of judges.
We have the venture partners; the prize that these idea will earn will impact the cash but will also be equity by NSIA in doing business.
So, we have the venture partner that will help NSIA manage those businesses and offer value to the creation.
Last is an auditor to ensure all of the rules that are being put in place in terms of application, in terms of the criteria set for review and the basis upon which these ideas will be judged. Basically, an auditor that would hold the entire competition to account to make sure that the transparency and accountability that the NSIA is known for continue to abide.
How is NSIA going to fund this programme, what funding will be offered to startups and how will the NPI attract startups?
NSIA’s involvement in this prize is not one of those prizes where we wake up one day and somebody has won a certain amount. This prize is going to be NSIA engaging actively and as broadly as possible with the tech ecosystem.
As I mentioned, it is a portal where people apply. There is going to be a shortlisting process for 30 ideas. Those 30 ideas are going to go through an acceleration stage with our technical service provider, where each of those ideas will engage. The technical service provider will offer substantial value creation, then those 30 will be seeded to 10 and then participate in the Demo Day.
The offering of the NSIA is as much cash as it is value addition. It is as much cash as it is in kind. Secondly, NSIA will also be taking an equity stake in the top three ideas. So, it is as much an investment for us as it is a catalytic intervention.
When is the take-off time for this programme?
I think, in the next one month, we will allow the portal to be opened. But this is just a launch, pre-Christmas, to allow people know and prepare so that, when we launch the portal, people have an understanding as to what this initiative is.
How much is the amount for this competition?
Like I said, the value addition of NSIA is as much about the cash reward as it is the value creation that we offer the startups.
Is the value initiative going to be in mentorship?
Indeed, mentorship; it is going to be an accelerator programme, not only mentorship but also review of their business plan, enhance their business plan introduction, utilizing the convening power of both the venture partners and as well as the technical service provider to essentially enhance these ideas, introducing them to other capital providers and what not. I think that value addition is as much, if not greater than, the cash prizes that we will give.
How inclusive will this programme be for participants?
That is fundamental. Inclusion is everything, not only for women. NSIA is a federation-owned entity. Therefore, every single state participating is the shareholding of NSIA.
Therefore, in the application process, we are going to encourage everyone within the country to apply. Our youths, the elderly, every single person in the North, South, West, East, of course our women and men, and it is going to be as inclusive as possible.
That was the point I was making in my own very short remarks. As I said, this is going to be an extremely inclusive prize in terms of access, but, of course, in terms of wins, it is going to be on the strength of the impact of the idea.
The equity stake your are talking about that NSIA will have in the three top ideas, is it in the form of monitoring and evaluation or ensuring the funds are given to the legitimate winners?
That is why we will be having an auditor in place as well. If you recall, I said we have a technical service provider that will be in charge of the back-end to receive the application. There is going to be a venture partner so that the winners that NSIA is investing equity in are going to add value and manage those investments on our behalf. Then we will have an auditor to hold not only NSIA to account but also ensure we have a fair and transparent process. But also those winners, there will be some sort of monitoring and evaluation to ensure all of that is in place.
How do you ensure that the ideas are fully home-grown?
That will be one of the criteria of the prize. It is going to be very clear, it is a Nigerian prize for Nigerians. But just to be very clear, ‘home-grown’ does not mean domestic ideas, it means it started in Nigeria but necessarily they have to be global. They can start from Nigeria, but the destination has to be global. This is what this prize will encourage, Nigerian ideas, Nigerian capital and global destination.
