Adopt and Execute the Nigeria Startup Act at the State Level
The Nigeria Startup Act relies on several factors to work. One such factor is State adoption. It involves setting out the establishment and form in which an Act will exist within the context of a state. In Nigeria, adopting the Act requires thorough processes considering diversity cutting across the different states.
While so much can be achieved in the era of the Act, very little will be achieved in the absence of State Adoption; it is that crucial. As members of the Nigerian public elect their next leaders, those elected increase their chances of succeeding when they adopt and execute the Act in their various states.
There is enough evidence that State governments see the benefits of adopting the provisions of the Act in their states. Osun state government, in recent days, became the latest administration to take steps at adopting the Act. It follows other states, including Kaduna, Edo, Yobe, Ekiti, Anambra, Lagos, and Zamfara, willing to adopt the Act to further the state development. Other states are expected to follow suit to avoid being left behind by founders, investors, talent, and economic prosperity.
These measures will help the state foster youth entrepreneurship while also strengthening the bond across the different tiers of government in the country. While the number of states showing signs of adopting the Act is increasing, showing interest or mapping out plans is not enough. It must be backed with concrete steps and actions.
Anyone can be at the forefront of pushing statewide adoption, Interested? The Act’s program team has a dedicated team empowered to support the various stakeholders at the state level in designing a policy that works for them. Contact the team at hello@startupbill.ng.
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Big News From Osun State
After announcing the launch of its 100 days in office program last month, the Osun state government took action on one of its key components - adopting and implementing the Act in its state. Osun state governor, Ademola Adeleke, informed members of his state’s House of Assembly of his legislative plans. “The first bill is about Nigeria’s Start-Up Act”, he said.
A startup-friendly environment gives States a competitive advantage relative to their peers. For the Osun state governor, adopting the Act “will align Osun with federal efforts and open doors for our startup innovators to get easy funding”. Other benefits await Osun when it executes this plan.
Laudable provisions of the Act
The Nigeria Startup Act was created to ease the burden of running a startup in Nigeria. The provisions contained in the Act address some of the critical challenges startup stakeholders face in the ecosystem.
BusinessDay Nigeria highlights "the notable but laudable provisions of the Act on tax and fiscal incentives available to Start Up companies in Nigeria".
Pioneer Status Incentives Schemes is one of the tax and fiscal incentives available to startups. Eligible startups which have been granted the Pioneer Status Incentives "enjoy up to five years of tax holiday (three years initially and renewable for an additional two years)". Read more to learn more about other incentives, including "Exemption from payment of Company Income Tax".
Catalysts for Startup Growth: SEC Approves NGX Technology Board Listing Rules
Months after the passage of the Nigeria Startup Act, the Nigerian Exchange Group (NGX) announced the establishment of the Technology Board which is aimed at allowing startups to list and publicly trade their shares in order to generate capital. While this news was not met with much surprise as the NGX had in February 2022 hinted that it intends to revise its listing rules to make them startup-friendly, it is quite commendable and revolutionary for the country’s startup ecosystem. It should be emphasized that private companies do not trade publicly, however, to be listed, they must incorporate a special purpose vehicle (SPV) or holding company.
The NGX’s move is in fact, a fulfillment of section 36 of the Nigeria Startup Act which provides that the Council shall assist labeled startups that seek to list on the relevant board of the Nigerian Exchange Limited (NGX), or on similar stock and commodity exchanges operating in Nigeria. Read more on this here.
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Volunteer Spotlight
This week, we are shining a spotlight on a Champion of the Nigeria Startup Act!🥳🎉
Meet Irhose Apori, Creative Lead at The Content Advocates and Communications Officer at the Nigeria Startup Act.
What motivates him about his work is that his work with startups and startup founders is helping to create the future he wants to live in. If he is not in his current position, he will be lecturing as a cognitive neuroscientist.
For him, he is most excited by the work he does as the nexus of the startup ecosystem in Nigeria. And how the work is gradually transforming mindsets and will eventually transform the ecosystem as a whole the best thing about being an NSA volunteer is the people.
His favourite Nigerian slang is ‘Omò mehn”!
We are proud of you for being a great Champion of NSA, Apori. Thank you for your contributions to the Nigeria Startup Act!
CALL FOR VOLUNTEERS
Are you passionate about writing and would love to be part of a team shaping the conversation about a national project? Join the Communications team. Send a mail to hello@startupbill.ng to signify your interest. We can’t wait to have you.