Nigeria’s President, Muhammadu Buhari has signed the Nigeria Startup Bill into law.
The Minister of Communication and Digital Economy, Isa Pantami disclosed this on Wednesday in a tweet immediately after President Muhammadu Buhari appended his signature.
Pantami tweeted, “His Excellency, @MBuhari has just assented to Nigeria Start-up Bill. It has now become Nigeria Start-Up Act, 2022.
“It was an Executive Bill, initiated by both Office of the Chief of Staff and the Office of the Minister of Comms & Digital Economy. Congratulations to all.”
The new Act is a joint initiative by Nigeria’s tech startup ecosystem and the Presidency to harness the potential of our digital economy through co-created regulations and also seeks to bolster the growth of the startup ecosystem in Nigeria.
Part of the provisions of the bills includes Seed Fund for startups. This means that Startups can access a special seed fund created under the Bill. The Bill establishes a Startup Investment Seed Fund, which is designated for startups alone. It will provide finance and tech relief for startups. This means increased access to funding that will grow the startup ecosystem. It will be easier for startups to fund their operations by leveraging the grants and loans that will be available to them.
Also, the bill made provisions for some tax Incentives; Companies labeled as startups will benefit from some tax reliefs and incentives under the Bill. These labeled startups are eligible for pioneer status incentives and other tax reliefs. Labeled startups with at least ten employees where 60% of the employees have no prior work experience within three years of graduation or any vocational program have access to percentage-based tax relief.
The bill also introduces a program that will enhance the training and development of talents in the Nigerian startup ecosystem. It provides support for academic research institutions geared towards startup development.
It is also believed that the bill will create a friendly environment for tech-based startups and promote the ease of doing business. This means that the tech space will become more attractive to investors and usher in new entrants into the market. So, it will give birth to new startups and cause existing ones to thrive.
