On Wednesday, Nigeria’s Minister of Communications and Digital Economy Isa Pantami announced in a Twitter post, that President Muhammadu Buhari has assented to the Nigeria Startup Bill.
Buhari signed the Bill, which is described as “ a joint initiative by Nigeria’s tech startup ecosystem and the Presidency to harness the potential of our digital economy through co-created regulations,” into law following passage by the House of Representatives in July 2022.
“The objective of this (Bill) is to provide a legal and institutional framework for the development of startups in Nigeria,” the policy document said.
Now that the Bill is Law, here are 5 things you should know about Nigeria’s latest Act:
- To ease the process of setting up a startup in Nigeria, the Act made provision for the creation of a Startup Support and Engagement Portal which will, among other things, “facilitate the issuance of a permit or licence to a labelled startup”; as well as a Startup Consultative Forum made up of startups, investors, tech hubs, Nigerian Computer Society, among others, to facilitate information sharing and collaboration in the tech ecosystem.
- The Law is designed for “labelled startups”, which among other things, must have at least 51% of its shares held by one or more Nigerians.
- There is a Startup Investment Seed Fund which will provide startups with finance to grow and scale.
- The Law makes provisions for training, capacity building, and development of tech talent in the country.
- There’ll be tax and fiscal incentives for labelled startups, their investors and employees, as well as their external service providers.
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