Implementation of the Nigeria Startup Act: What to Expect
The passing of the Nigeria Startup Act into law triggered events necessary to begin its implementation; relevant activities needed for the implementation of the Act have since begun.
The National Information Technology Development Agency (NITDA) manages the framework required for full implementation. The framework, including the next steps, was recently approved by the President. It is upon these established implementation guidelines that state adoption builds.
Setting up the Council for Digital Innovation and Entrepreneurship; the Startup support and engagement portal; the Startup investment seed fund; and the Consultative Forum are some of the next steps expected to be finalised.
Implementation of the Act ushers in a new era for startups. It gives startup stakeholders the opportunity to make the most of its provisions. However, for the Act to achieve its full potential, startup stakeholders will need to fully participate. They participate by familiarising themselves with the provisions of the Act, especially as it relates to their role in the tech ecosystem. Also, participating in holding the government accountable for its policies.
To create a legal framework for the growth and development of startups in Nigeria, successfully implementing the Act is necessary. Several laws failed to have the desired impact due, in part, to poor implementation. Avoiding similar setbacks would require collective effort and collaboration among players in the tech ecosystem.
The implementation of the Act will need all hands on deck, especially as it involves more players over time. The signs are visible that so many stakeholders are interested in the success of the Act. That enthusiasm will be even more needed to sustain and build upon the gains.
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The NSA brings the government closer to startup stakeholders.
The Senior Special Assistant to the President on Digital Transformation, Oswald Osaretin Guobadia, was a panellist at the recently concluded Africa Technology Expo 2023, organised by Spark Africa HQ.
The Act was intentionally created to solve specific problems 'within the tech-enabled startup ecosystem', he told participants. For the provisions in the Act to be effective, all stakeholders must 'stand up and reach up to participate'.
Watch an excerpt as he discussed his views on some of the key benefits of the Act to the young tech enthusiasts present at the Tech Expo.
Work already started to provide incentives to the tech industry.
At the 65th session of the State House Briefing, The Minister of Finance, Budget, and National Planning, Zainab Shamsuna Ahmed, announced plans to direct tax incentives toward the tech industry.
"We are working at reviewing the various suites of incentives that we have for enabling business today", she said. The goal is to exit incentives that are enjoyed by companies who are no longer eligible "but are still enjoying the incentives".
According to the Minister, "we are going to be moving these incentives to new and infant industries, largely they will be the new IT digital companies, startups that we require for the economy to run." Watch the short clips here.