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Spark, Lagos Internet Group Secures $2m Investment

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Spark, the Lagos-based Internet Group that invests in Nigerian start-ups, has raised a $2 million investment from a syndicate of 17 international high net individual investors, based on a $10 million valuation for the three month old company.

The investment comes swiftly after Internet entrepreneurs Jason Njoku, Bastian Gotter and Mary Remmy-Njoku of Nollywood VOD start-up iROKOtv fame, officially launched the company, when they announced a $1million fund to revolutionize Nigeria’s angel investment eco-system, focusing solely on the country’s Internet startup scene.

Njoku and Gotter will use the $2 million to expand the company’s offices, initially in Lagos, before opening Spark hubs across Nigeria.

The investment will also provide further follow-on rounds of seed-investments for Spark companies.

Spark companies currently employ 130 people across the nine launched companies, three of which have already secured second-round seed investments totaling an additional $700,000 from Njoku and Gotter, primarily to build upon their current market leading positions, compete more effectively and enable them to expand fast enough to meet consumer demand.

Spark companies collectively generate $50,000 turnover a month and this figure is expected to increase significantly as the companies begin to really build traction.

To-date, Spark has invested in some of Nigeria’s most exciting Internet startups including hotel room booking site, hotels.ng, the undisputed leader in hotel room booking service in Nigeria; bus.com.ng; Nigeria’s number one bus ticketing website and ToLet.com.ng, which are revolutionising the customer facing lettings space in Nigeria.

Njoku, Spark Managing partner said: “We set out to grow the Spark companies to be market leaders. This requires capital. Our companies are laser focused, totally exceeding our initial expectations and showing increasingly strong metrics. Every Spark company focuses and generates revenue which we feel is essential to the survival of any Internet startup in Nigeria. Bastian and I were impressed with their output, as were our investors, hence we have been able to raise the sum of $2 million in nine days from high network individuals, a mere three months after the official Spark launch. We expect to raise more money in the coming months to cement Spark as one of the preeminent Internet groups in Nigeria and Africa.”

Gotter, Spark Managing partner added: “Capital here in Nigeria is prohibitively expensive for most, so start-ups tend not to be able to grow at the rate that is required to become a mature and profitable business. Spark companies now have the capital behind them to invest in technology, good staff, building out their inventory – whatever is required to make them into a stronger long-term business. Jason and I have previously been vocal on the shortcomings of Nigeria’s business eco-system and how investment does not reach the right people. With this additional investment of $2 million, we are now able to channel even more funds to the companies who will one day lead the continent’s Internet space.”

Following the launch of Spark in May 2013, a number of high net worth individuals from Lagos, Singapore and London approached Njoku and Gotter to discuss the potential of investing their private capital into Africa.

Their direct approach and the fact that Spark opened and closed the round in nine days demonstrates how international investors’ interest in Nigeria’s Internet industry is growing, revealing the huge potential the continent holds in terms of building an exciting and profitable Internet marketplace.

Currently, the Internet sector in Nigeria is valued at $250 million, but industry experts have calculated that this will increase to $1billion by 2016.

Spark companies are positioned to take on and be front-runners in the race for Nigeria’s top Internet start-ups.


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E-Business

NITDA Takes Over National Digital Architecture System

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Nigeria has taken a major step toward strengthening its digital governance framework as the National Information Technology Development Agency (NITDA) officially assumes control of the Nigeria Government Enterprise Architecture (NGEA) infrastructure.

NITDA Takes Over National Digital Architecture System

The handover ceremony held in Abuja, marks the culmination of a high-level partnership with the Korea International Cooperation Agency (KOICA).

This transition signals a shift from fragmented IT projects to a unified, disciplined approach to national digital investment.

The NGEA initiative forms a core part of the e-Government Masterplan 2.0 (Ne-GMP 2.0), aimed at establishing a unified and structured approach to managing government IT investments and digital resources.

The framework is designed to ensure that technology deployment across public institutions aligns with national priorities while improving efficiency and accountability.

With the system now operational, government agencies are expected to adopt more integrated digital processes, allowing seamless data sharing and interoperability.

This is anticipated to reduce duplication, strengthen risk management, and translate policy objectives into measurable digital outcomes.

Over the past two and a half years, Nigerian technical experts worked closely with their Korean counterparts to develop the architecture framework, create reference models, and execute pilot programmes in key institutions.

These include the National Identity Management Commission, Nigeria Customs Service, Nigeria Immigration Service, and NITDA.

Officials say the NGEA represents a shift from fragmented digital efforts to a more coordinated, citizen-focused system.

The infrastructure is hosted by Galaxy Backbone Limited, providing a secure and reliable platform for nationwide deployment.

Looking ahead, NITDA is expected to work with government stakeholders to expand and sustain the system, while the Federal Ministry of Communications, Innovation and Digital Economy will provide policy guidance to ensure its adoption across the country.

 

 


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FG Shifting Focus to “Meaningful Connectivity” to Drive Inclusion  – Minister

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Bosun Tijani, minister of Communications, Innovation and Digital Economy, has said the government is shifting focus from expanding access to ensuring “meaningful connectivity” that drives economic growth and inclusion.

FG Shifting Focus to “Meaningful Connectivity” to Drive Inclusion  - Minister

Bosun Tijani, minister of Communications, Innovation and Digital Economy

The minister made the statement on Friday while addressing stakeholders at the inauguration of board members of the Universal Service Provision Fund (USPF) in Abuja.

He said that although Nigeria had made significant progress since the introduction of GSM services, millions of people, particularly in rural and underserved communities, remain either unconnected or unable to fully benefit from digital services.

Dr Tijani highlighted ongoing investments in digital infrastructure, including plans to deploy 90,000 kilometres of fibre optic network and nearly 4,000 telecom towers nationwide.

He said initiatives under the USPF had improved access through projects such as rural connectivity and digital facilities in schools but stressed that the next phase must prioritise effective usage.

“It is not enough to connect a community. We must ensure that schools can teach with digital tools and that small businesses can access market opportunities,” he said, citing a pilot project in the Kura community where connectivity has enhanced access to communication, education and healthcare.

Aminu Maida, executive vice chairman, Nigerian Communications Commission (NCC) also called for a shift towards meaningful connectivity, noting that while data usage had grown significantly, it remained concentrated in urban areas.

According to him, recent data shows that telecom usage has increased by about 160% over the past two years, largely driven by urban demand.

“When we drill down, we see that a lot of that growth is actually in urban centres. So, the gap between those who are not connected or not meaningfully connected is growing,” he said.

Dr Maida added that the trend underscored the need for the USPF board to intensify efforts to bridge both access and usage gaps across the country.

Both officials emphasised the importance of collaboration, sustainable investment models and improved digital literacy to ensure that connectivity translates into real economic benefits for Nigerians.

 

 


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Jury Finds Meta, Google Liable for Woman’s Social Media Addiction

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A jury in Los Angeles has found technology companies, Meta and Google liable for contributing to a young woman’s social media addiction, in a case being described as a landmark ruling.

Jury Finds Meta, Google Liable for Woman’s Social Media Addiction

The 20-year-old woman, identified only as Kaley, argued that she became addicted to Google’s YouTube and Meta’s Instagram from an early age due to their attention-driven design features.

According to her testimony, she began using YouTube at the age of six after downloading the app on her iPod Touch to watch videos about lip gloss and online games.

Kaley told the court that she joined Instagram at nine, bypassing parental restrictions put in place by her mother, and spent extended periods on social media.

The trial, which lasted about a month, with arguments and evidence from both sides.

Jurors also heard testimony from Mark Zuckerberg, chief executive, Meta and Adam Mosseri, Instagram head.

However, Neal Mohan, YouTube chief executive, did not testify.

The jury found that the companies were negligent in the design of their platforms and failed to adequately warn users about potential harms. Meta and Google were ordered to pay the woman $3 million in damages.

Jurors also recommended additional punitive damages, including $900,000 against YouTube and $2.1 million against Meta, according to company spokespersons.

The jury apportioned 70 per cent of the responsibility to Meta and 30 per cent to YouTube.

Kaley was present in the courtroom when the verdict was delivered, alongside parents of other teenagers who say they were harmed by social media use. Both companies said they plan to appeal the decision.

“We respectfully disagree with the verdict and will appeal. Teen mental health is profoundly complex and cannot be linked to a single app. We will continue to defend ourselves vigorously as every case is different, and we remain confident in our record of protecting teens online”, a Meta spokesperson said.

José Castañeda, Google spokesperson, said the case misunderstands YouTube, which is a responsibly built streaming platform, not a social media site.


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