Umar-Sadiq: How NSIA Prize for Innovation Programme Will Work

The Nigeria Sovereign Investment Authority recently launched the maiden edition for its Prize for Innovation Programme aimed at stimulating development in Nigeria’s digital eco-system as well as catalyse domestic capital for domestic ideas. In this interview, the Managing Director/Chief Executive Officer of the Authority, Mr. Aminu Umar –Sadiq, spoke on the initiative and how the programme will support budding entrepreneurs. Obinna Chima brings the excerpts:

What is the purpose of the NSIA Innovation Programme and what strategic objectives is it expected to deliver?

The programme is expected to catalyse 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, whilst 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 & E-mobility, E-commerce & Marketplaces, Renewables, and Power. This Programme is supposed to catalyse 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 center in the tech ecosystem of Nigeria and number two importantly is to ensure that those great ideas that Nigerians have, find local capital in other 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 ideas’ stage, what will be the benefit of the NSIA?

This will also consider the ideas 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 other 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 center supporting it.

How will the NSIA select or shortlist winners, what process are we using in ensuring fairness in objectivity and transparency?

There are three different services provider that we have brought upon. The first is the technical services 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 ideas will earn, will impact the cash, but will also be equity by NSIA in doing businesses. So, we have the venture partner that will help NSIA manage those businesses and offer value to the creation. Lastly, is an auditor to ensure all of the rules that are being in place in terms of application, in terms of the criteria set for review and the basis upon which these ideas will judge. 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 be funding this Programme, what funding will be offered to startups, and how will NPI attract startups?

NSIA involvement in this prize is not one of those prices where we wake up one day, and somebody has won a certain amount. This price 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 short listing process for thirty ideas, those thirty ideas are going to go through an acceleration stage, with our technical services provider where each of those ideas will engage. The technical service provider will offer substantial value creation, then those thirty will be seeded to ten and then, participate in the Demo Day. The offering of NSIA is as much cash as it is value addition. It is as much cash as it is in kind.  Secondly, the 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 open. But this is just a lunch 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 these startups.

Is the value initiative going to be in mentorship?

Indeed, mentorship, it is going to be an accelerator program, not only mentorship, but review of their business plan, enhance their business plan introduction, utilising 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 worth not. I think that value addition is as much if not greater than the cash prices that we will give.

How inclusive will this Programme be for participants?

That is fundamental. Inclusion is everything not only for women. The 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 everywhere in the country to apply. Our youths, 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.  This is going to be an extremely inclusive prize in terms of access, but of course, in terms of wins is going to be at a strength of the impact of the idea.

The equity stake that you are talking about that NSIA will be having in the three top, is it in form of monitoring and evaluation or ensuring that the funds given to participants are the legitimate winners?

That is why we are 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 ventures 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, they will be some sort of monitoring and evaluation to ensure all of that are in place.

How do we 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. I think this is what this prize will encourage, Nigeria ideas, Nigeria capital, and global destination.