Senate Leader Abdullahi Yahaya on Tuesday in a plenary session sponsored a bill to boost tech startups in Nigeria. The bill passed for a second reading after the guiding principles of the bill were explained.
Current situation
President Muhammadu Buhari’s administration plans to boost digital innovation by empowering tech-based businesses with an environment to thrive. The president had urged the National Assembly to pass the bill, while seeking a national council for digital innovation.
What they are saying
The Deputy Speaker of the senate, Ajayi Borrofice, says the bill would create the right environment for tech startups to thrive. While the Deputy Whip of the Senate, Sami Abdullah said the bill should tackle cybercrime in the country.
Details of the bill
The tech-based bill proposes a startup seed capital funding and relief of tech laboratories, accelerators, incubators and hubs to eligible tech businesses. The Nigeria Sovereign Investment Authority would manage this funding.
It would also create a National council for Digital innovation and Entrepreneurship with a duty to institute a policy direction, inclusive of the creation of Startup Support and Engagement Portal.
Section 31 (1) of the bill proposes a 35% tax holiday for employees of the startup covering a 24month period.