Back in July 2022, Nigeria’s Senate passed the startup bill which aims at creating a friendly environment for tech-based startups in the country. The startup bill, which is awaiting the assent of Nigeria’s President Muhammadu Buhari, would edge the country into being the best place for tech investment in Africa.
Why it matters
The startup bill would provide a regulatory framework for tech startups to operate within the bounds of the law. It would further give young people with tech solutions the right habitat to cultivate and sell their ideas in the country, which projectively increases wages and job opportunities for young people.
Special provisions of the startup bill if passed into law
- The bill recognizes a company as a startup if it obtains a certificate known as a startup label. Also, under the bill, a startup is a company that must have been in existence for at least 10 years.
- Startups are liable to seed funds in the form of grants and loans to fund their operations.
- The bill qualifies startups for tax relief packages and incentives. For example, a startup with no more than 10 staff where 60% of them have no prior work experience within three years of graduation or any vocational program has access to percentage-based tax relief.
- Under the bill, startups are assured of a seamless process with regulatory bodies such as the Corporate Affairs Commission, Nigerian Copyright Commission, and Trademarks, Patent and Design Registries, Nigerian Exchange Limited, etc.
- The bill educates startups on all the legal necessities that have hindered the growth of startups in the tech industry in former years.
- The bill crowns the National Council for Digital Innovation and Entrepreneurs as the authority over startups. This council formulates the policies, processes, framework, support, etc which the industry is run by.
- The bill also seeks to provide peculiar accelerators, training and a friendly environment that enhances the growth of the tech industry.