TECHDIGEST – From Nigeria Startup Bill to Nigeria Startup-Act. It is quite fascinating how the yearning for business and technology development in Nigeria engulfed stakeholders in the innovation startup ecosystem to actively engage in driving the bill which eventually became law on the 19th of October 2022.

The Nigeria Startup Act was an executive bill, initiated by both Office of the Chief of Staff and the Ministry of Communications and Digital Economy as a legal framework to help create an enabling environment and make provision for startups to have access to public and private funding amongst others.

Interestingly, one of my recent articles highlighted the significance of tax relief in the startup ecosystem to ease business development but with the bill now a law, access to numerous incentives has been enabled by the Act which is now deemed effective for all startups across the nation.

A startup simply refers to a business that is just starting, which in the past suffered from dealing with multiple layers of regulations to secure the necessary licenses needed to operate as a business.

The process of startup founders seeking registration or license is often hindered by factors like aggressive government policies, ambiguous regulatory policies, oversaturation of startups in certain locations, talent shortages, high business costs, funding difficulties, etc.

It is for this reason that the federal executive council decided to engage with key stakeholders in the ecosystem to co-create clearly-defined legislation and incentives that will benefit and allow startups and innovators to thrive in an environment where their interest is well protected.

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By providing a legal and institutional framework for the development of Nigerian startups, the Act is also creating an enabling environment for the establishment, development, and operation of startups in the country.

For instance, the Act applies to all companies incorporated under the Companies and Allied Matters Act and grants the startup label and organizations and establishments, whose activities affect the creation, support, and incubation of labelled startups in Nigeria.

In order to determine the startups with the right metrics to be considered tech-enabled, the Act provides for “labelling” which is a merit granted to qualified startups and grants them access to incentives.

According to the provisions of the Act, for a startup to be eligible for labeling, it must meet the criteria to be a limited liability company under the Companies and Allied Matters Act and has been in existence for a period not more than 10 years from the date of incorporation.

This means that the startup objectives are innovation, development, production, improvement, and commercialization of a digital technology innovative product or process amongst others as entrenched in the NSB Act.

To ensure startups’ access to funding, the Act contains the provision for the creation of the Startup Investment Seed Fund (Fund), to be administered by the Nigerian Sovereign Investment Authority.

The sum of not less than N10,000,000,000 (ten billion Naira) is expected to be paid into the fund annually for the purpose of providing finance to early-stage startups and also providing relief to technology laboratories, accelerators, incubators, and hubs. There are provisions for a Credit Guarantee Scheme with ensures access to grants and loans administered by the Central Bank of Nigeria (CBN), the Bank of Industry, and other bodies statutorily empowered to help entrepreneurs and SMEs.

Under the Pioneer Status Incentives (PSI) Scheme from the Nigerian Investment Promotion Commission (NIPC), startups that qualify for pioneer status may receive expedited approval for tax reliefs and incentives. This is to encourage both local and foreign investors to invest in startups in Nigeria. Through this arrangement, an investor may receive a tax credit of up to 30 percent of the investment and also partake in the free repatriation of funds.

Despite this innovative legislation, many startups are still lost on how to register their businesses. Although the Act fosters the enabling environment and creation of a portal to serve as a platform for registration and other purposes, the need for awareness creation to enlighten people on the benefit of NSA is important and must be prioritized.

Firstly, the startup is to create an account with Corporate Affairs Commission before registering the company. The Companies Registration Portal (CRP) can be accessed through these links: https://pre.cac.gov.ng/home and https://post.cac.gov.ng/llogin.

By creating an account, the applicant would be able to electronically submit documents and statutory returns to the commission.

Secondly, the applicant would follow further instructions on the CAC official website and log on to the e-registration portal for further details.

Meanwhile, at the just concluded Digital Nigeria Conference2022, a group of startup founders commended the effort of the federal government for making the Startup Act to become a reality.

While discussing the topic “Unlocking Nigeria Innovation Potential for Economic Growth and Prosperity”, the startups acknowledged the significance of the new law to the ecosystem and described it as a new dawn for startups in the country. They agreed that the use of technology to solve problems is paramount in every nation and the Nigeria Startup Act will help startups and existing companies gain access to skills, finance, and other vital resources in the future.

Stakeholders and startups expressed gratitude to National Information Technology Development Agency (NITDA) for creating various platforms for ecosystem players to gather and collectively discuss the way forward in the unfolding startup revolution in the country.

The Office of the Nigeria Digital Innovation ONDI, a subsidiary of NITDA, also received commendations for their consistent effort in promoting the growth of indigenous innovators and innovation-driven enterprises by organizing strategic programmes and initiatives to empower young Nigerian entrepreneurs to refine their business models to deliver innovative products, services, and processes to the global market.

Most importantly, let me acknowledge the relentless effort of the Federal Executive Council, the Ministry of Communications and Digital Economy, its agencies, and stakeholders in accelerating the enactment of the Nigeria Startup Act to motivate more young indigenous talents to generate job opportunities, create wealth for a growing a successful and sustainable digital economy.

Zeenat O. Sambo, a staff writer of Techdigest writes from Wuye District, Abuja

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TECHDIGEST- Yesterday the news came to me with joy that HE. Mr President Mohammadu Buhari assented to the Nigerian startup bill (NSB) . A lot of work was put into the bill which was an executive bill initiated by the FG and Prof Pantami led the Charge from the FG angle and the OVP, NITDA and other stakeholders including the Young innovators of Nigeria at the various stages of the bill. The NSB now NSA is a very welcome development for the startup innovation ecosystem, it will be recalled that the startup ecosystem was birthed by the pioneer minister for communications Mrs. Omobola Johnson and that initiative was transformed and given the much needed attention from where Mrs. Johnson left it by the current minister for communications and digital economy Prof Isah Ali Ibriahim Pantami . The objective of the bill is to develop an institutional framework for the development of the Nigeria innovation ecosystem. It was signed yesterday by President Buhari to be a startup ACT, which I consider a 50th Birthday gift to Nigerian startups from the Minister of Communications and digital economy, the man who has championed the bill alongside other stakeholder from inception to now. Primarily this ACT now will solidify our Innovation ecosystem by serving as a cushion/ Launchpad for startups to take more innovative risk in developing solutions that can address our challenges, startups don’t need to think about where to access fund and the much needed regulatory and structural framework they need to thrive is provided in this ACT. It is pertinent to note that the ACT made provision for the provision of an enabling environment for the development and operations of startup to enable them compete globally among other peers. This will further foster the development of technology enabled talents to think deep and reposition the Nigeria startup ecosystem as a leading digital technology hub because of the quality of solutions that will be birthed that are globally competitive hence set the country startup ecosystem as one of the leading drivers to achieve the AFICTA goals if we get the implementation right. The era of Pantami has witness many wins for the communications and startup ecosystems because the policies are clear direct and practical to the challenges that needed to be addressed within the digital economy space, hence this addresses one of the pillars or more he has developed for the achievement of the digital economy. The ACT when implementation begin in earnest can create more than 10,000 direct jobs within the first few months that is why I called it a birthday gift from professor, Pantami . this is one of the biggest gift to us in the innovation ecosystem and we are most appreciative to President Buhari and the digital economy champion of Africa our own Professor Pantami for seeing this to the logical conclusion . it is coming a day to the 50th Birthday of our dear minister and I think Mr. President choose the right day to sign the bill to ACT. One of the happiest day for me as a person because I have always compared and advocated for the creation of a ministry of entrepreneurship and digital innovation, now we have a brown new council facilitated by pantami which we go down in Nigeria technology history. The council will be used as a special purpose vehicle for the development and restructuring of the startups in Nigeria, the council will synergize with other agencies of government to support our ecosystem. We all know that seed funding and access to capital remains a huge challenge to our startups and the ACT clearly addressed that , it has an initial 10 billion endowment fund for seed funding. So I see the Federal Government taking direct steps to work with this very important sector we are operating , we have the capacity to lift millions out of poverty within a short time as technology entrepreneurs do everywhere .

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The startup engagement portal is also a critical element in the implementation, I can say the bill was well planned, I had participated in the public hearing and made my inputs but what I am reading as the final act means the government actually listened and all bottlenecks for implementation will be minimized with the final document.

The ACT will further strengthen the support to innovation hubs and accelerators to be the driving house for the development of the much needed skills and human capital development the startups will need to have to thrive.

Its all encompasses from regulatory to tax and fiscal incentives support to the startups from ideation to market stage. What a good time to be a Nigerian startup, so it comes with many opportunities and if we are willing to work hard we will reap all the benefits within a short time. So I salute everyone who have been part of this work.

NITDA pushed so hard for this and the Innovation support network. The Young innovators of Nigeria as an advocacy group that has supported and created platform for Nigerian startups since 2013 is proud to be a supporter of this ACT and is willing to collaborate with government in the implementation of the ACT . This is the beginning of the new era in our industry and we are happy to play a lead role . Once again is happy Birthday to the pioneer digital economy minister prof. Isa Ali Ibrahim FBCS FNCS who has given us this gift of many colors. I wish to join every member of the startup ecosystem in thanking the Honorable minister for this gift while wishing him long life and more opportunities to contribute to the development of Nigeria, we are proud of your achievement and commitment to our growth.

ANDREW ABU. FIMC MNCS MCPN PRESIDENT/FOUNDER YOUNG INNOVATORS OF NIGERIA

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TECH DIGEST- Muhammadu Buhari has assented to the Nigeria Startup Bill, passed by the National Assembly, NASS, in furtherance of Section 58 (4) of the Nigerian Constitution.

This was disclosed in a statement by Sen. Babajide Omoworare, Senior Special Assistant to Mr. President on NASS Matters- Senate.

Recalled that Buhari sent the Startup Act to NASS on March 22, 2022, to establish the National Council for Digital Innovation and Entrepreneurship.

READALSO: Pantami Launches Partnership with Coursera to Offer 24,000 Nigerians Digital Skills

The Act provides a legal, institutional framework and enabling environment for the creation, establishment, growth, development and operation of technology-enabled talents, excellent innovators with cutting-edge skills and exportable capacity in the startup ecosystem in Nigeria, with a view to ultimately consolidating Nigeria as the leading digital technology centre in Africa.

Among other things, the Act provides for the formal labelling of a startup outfit whose objects include innovation and development of digital technology products or processes; provision of startup investment seed fund; training, capacity building and talent development; tax and fiscal incentives; establishment of accelerators and incubators programs; and establishment of clusters, hubs, innovation parks and technology development zones.

The President also gave his assent to five other bills, which include the Federal University of Health Sciences, Utukpo Act; the Orthopaedic Hospital Act; the Federal Medical Centre Act; the Federal College of Complimentary and Alternative Medicines Act; and the Chartered Institute of Professional Secretariat Staff of Nigeria Act.

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TECHDIGEST – The Director-General of NITDA, Kashifu Inuwa CCIE emphasized the fact that Nigeria is doing pretty well in the Fintech industry and Environmental, Social, and Governance (ESG) especially with the application of developmental regulation approach and enabling policies toward co-creating the tech ecosystem.

Inuwa said this at the Digital Finance Summit, a sideline event of the ongoing GITEX 2022.

While noting that 2021 was a record year for tech startups in Nigeria as more than 35 percent of direct investments to Africa came to Nigeria, the Director-General added that the achievement was not by publicity but by structural design.

“In 2019, the President redesignated and expanded our ministry to cover digital economy and the Honorable Minister of Communications and Digital Economy, Prof. Isa Ali Ibrahim Pantami formulated the National Digital Economy Policy and Strategy for a digital Nigeria; so, that set the stage for the tech ecosystem in Nigeria”, Inuwa noted.

READ ALSO: Pantami, Kashifu Among International Guests at GITEX 2022 in Dubai

According to Inuwa, the FinTech has helped move so many people out of poverty.

“Between 2017 to 2019, we have seen in Nigeria where farmers access money from the government and also, during the COVID-19, a lot of people could not access the released funds and when you deliver it using cash, it costs much”.

“The start-ups are doing fantastically well, but also the government needs to level the playing field for them to plan better”, the DG remarked.

He went further to stress that government needs to work with the United Nations, World Bank ,and others to see how they can help build the infrastructures for the Fintech in order to reach the unreachable to be connected.

Moreso, the NITDA Boss told the audience that the Start-up Bill which has been passed by the National Assembly and awaiting Presidential assent will address almost, if not all the challenges plaguing the tech ecosystem.

Responding to questions regarding Nigeria’s efforts to entrench the Environmental, Social and Governance ESG, Inuwa explained that the Federal Government has been working assiduously towards creating a conducive environment for startups to thrive, as the Ministry of Communications and Digital Economy formulated several policies to help drive the digital economy.

“The policies are Startups ecosystem friendly”, when we talk about digital economy, we need three keys to drive it which include Digital Identity, Payment System, and Connectivity”

“We have other policies is tailored towards the bigger picture, like the National Broadband Plan, Digital Identity Policy, and the National Financial Policy which drives the financial inclusion in the country”, Inuwa maintained.

He avowed that the Agency’s developmental regulation is to safeguard the providers as much as consumers.

“Without the enabling environment, the ESG alone can not help them because the ESG sometimes, we see it as self-centric because as a provider when you come up with any self regulation or ESG, you do it in a way that would enable you to excel”

“The government looks at technology beyond seeing just a capitalist or a consumer, we work with the ecosystem in a way that gives them opportunity to develop new indigenous solutions that have global impact.”, the DG added.

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TECHDIGEST – As Nigeria moves to harness the potential of its digital economy through co-created regulations and provide enabling environment for growth, attraction and protection of investment in the sector, the Director General, National Information Technology Development Agency (NITDA), Kashifu Inuwa CCIE, has said that the recently passed Nigeria Startup Bill by National Assembly will help institutionalize legal frameworks that will enhance the growth of startups easily, quickly and conveniently in the country.

Inuwa stated this while delivering a Keynote Address at the Google Black Founders Fund in Africa 2022 Launch Event, which took place at Transcorp Hilton Hotel, Abuja

The DG noted that part of the challenge being faced by startups especially in Africa is legal backing. According to him, starting and growing businesses in Africa used to be a big challenge, but with such Bill in place, it will be easier to start a business.

READ ALSO: FG suspends proposed telecoms tax

Speaking on the importance of the event, Inuwa said the gathering is an opportunity for startups to get funding and start a business. Also, it is coming with other incentives like the training Google offers which can be accessed via their Cloud.

While affirming government’s commitment to the growth of digital economy in Nigeria, Inuwa said “we believe our own responsibility is to come up with policies that can enable a level playing field, and the government has been doing a lot in this area, starting with expanding the mandate of our ministry to cover digital economy, and the ongoing implementation of National Digital Economy Policy and Strategy for a digital Nigeria, which outlined its strategic pillars that are key to the ecosystem.”

“We are currently working on a project called “Talent Gap Assessment”, because we believe talent is the people side of technology. In Africa, we cannot compete with the rest of the world in terms of hardware and any technology infrastructure, but when it comes to talent, we have a competitive edge over the rest of the world.

Advising the Startups to have it in mind that technology is making things easier, Inuwa noted that customers’ demand is changing rapidly, so they should envisage how human lives will be tomorrow and come up with innovative products that will be sellable in the future market.

“Don’t waste your time on what is happening today, the problem of today may be irrelevant tomorrow. Focus on Emerging Technologies and change the way we do things in this world. What helps you to succeed today may not help you succeed tomorrow.”

“Try and turn your products into services because the world is moving to a service platform markets. You will make more money in service than in products. It is easier to provide a service in Africa because of our challenging infrastructure. Let us explore that, that will help us to excel,” he added.

He assured that the government is ready to partner with people or organizations like Google and the ecosystem in general, especially five key critical stakeholders needed on board to build a strong ecosystem; Entrepreneurs, Higher Institution, Corporate Organisations, Multi-national and Government.

“Entrepreneurs brings ideas, higher institutions provide human capital development, corporate organisations absorb products, and government’s role is basically in the policy-making and intervenes in a situation whereby there is shortage in unserved and underserved areas. This is why the government came up the start-up bill which is also going to come up with a seed funding that can help with early-stage funding as well,” he noted.

Inuwa thanked Google for the opportunity provided to African startups and also encouraged other multi-nationals to look at how they can help the African startups ecosystem with funding, adding that it is going to be a win-win situation, the more startups in Africa, the more digital offerings, the more market they will create for the multi-nationals.

On his part, Mr Adewolu Adene, Government Affairs and Policy Manager, Google Nigeria, applauded the Nigerian Government for the support it provides on easy system, and contributing to their data in terms of physical incentives and the registration process of Corporate Affairs Commission.

He said, “We are really grateful for the support that we have been getting from policy-makers and all the forces behind. We have done a lot to get to this point and we hope that we can continue to do even more to take us further such that we are able to deliver to the respective mandate.”

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TECHDIGEST – In view of the fact that Lagos State has continued to maintain itself as a viable community with the strongest unicorn of innovation in the Nation, the Director-General, National Information Technology Development Agency, NITDA, Kashifu Inuwa CCIE, has reiterated the Agency’s commitment towards giving the ecosystem the needed support to boost the sector’s contribution to the economy and strengthen the value chain.

He made the pledge during a dinner meeting with some key stakeholders of Lagos Ecosystem, including representatives from Microsoft, MasterCard, Norebase, among others.

Inuwa while suing for trust, and strengthening of the value chain deliberated on the best way to accelerate growth and support startups in the country, said “there are lots of distrust within the government and the ecosystem, so much that the only way to engender trust between the two entities is to have this conversation”.

READ ALSO: Nigerians to pay more for call, SMS, data services as FG set to increase tax

The Director-General assured the group of his unrelenting support to the ecosystem which he maintained would be his return base upon retirement from government service, emphasised the need for collaborations across the board to achieve a faster and more sustainable digital economy.

“We cannot succeed in isolation; we need each other to succeed. Innovation is not distributed evenly across the world. Innovation and digital economy is about humans”.

“A company is as good as its next product and its products are as good as the person or people who make them. This underscores the relevance of talents. If you don’t have the requisite skills and talents, then it is no deal”, he added.

The DG seized the opportunity to share his thoughts on different issues bordering on investments, partnerships, commercialisation of innovations, enabling policies and acquisition of relevant skills as well as trainings.

“At NITDA, we are reenacting our act and laws to make it more robust so that we protect the ecosystem”, Inuwa stated.

The NITDA Boss whose friendly body language gave the forum some sort of a relaxed atmosphere was keen on listening to their opinions and suggestions on how to get the ecosystem perform much better.

“The sector we are in is dynamic and we must move with its pace, so we don’t play catch ups or get left far behind. We must disrupt the way we do things and bring to bear professionalism, innovations that will solve indigenous problems but have global impact”, the DG urged.

While taking turns to share their ideas and challenges, some of the representatives touched on diverse areas of concern and specialisations, including soliciting for government support in the development of hardware space, funding, talents, procurements, local content enforcement, mitigating gateways, policy timings and changes, data protection and management, digital skills framework, standardisation and others.

Reacting to their comments and questions, the Director-General extensively explained the efforts of NITDA under the supervision of the Federal Ministry of Communications and Digital Economy and by extension, the Federal Government in addressing most of the issues deliberated.

The Start-up Bill was also on the front burner of his response as the DG quickly reminded them that most of the concerns raised would soon be rested, given the recent passage of the Bill into law by the National Assembly.

He assured the startups of a speedy and effective implementation of the bill to deal with the bottlenecks experienced and in the process, fast track the anticipated growth of the ecosystem.

Moreso, Inuwa highlighted the Code of Practice for Interactive Platforms as another document that is expected to engender appropriate monitoring to enforce compliance to established regulations guiding the sector, while seeking for their contribution to the document.

“We need to decide what and what are the right regulations so that every startup and industry player would have a Code of Practice that works for everyone and is adhered to the latter. Also, I think we need to form a union for Startup Ecosystem”, Inuwa added.

The engagement with Lagos ecosystem ended with a resolve by all parties to forge ahead against all odds but not just as an ecosystem but a more united and prepared for the future tasks.

The meeting was part of NITDA’s stride towards making Nigeria a talent hub for Africa and possibly the digital world, especially as there are several reports indicating a global talent shortage.

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TECHDIGEST – The Senate last Thursday passed the Nigeria Start-up Bill, NSB after four months of going through the contents.

The Bill drafted between June and September 2021 by over 30 tech leaders aims at providing enablement to some of the teething problems in the start-up ecosystem.

Since the 2000 when Nigeria began to assume a high flying status in technology development, some of the problems that have bedeviled the sector are mainly infrastructural decay, poor access to funding and near-harmful regulations.

There is probably no other aspect of the sector that has been as hard hit by these inadequacies than the start-up sub sector. Start-ups are companies in the first stage of their operations, often being financed by the entrepreneurial founders during the initial starting period. Most of them graduate mainly from the informal sector, which has remained the mainstay of the Nigerian economy and deserved all the support they can get.

However, the Nigerian business sector appears skewed and mainly supports politicians rather than entrepreneurs that need the supports to boost economic prosperity.

After over two decades of suffering in silence, about 30 start-ups including Ventures Platform founder Kola Aina and Future Africa founder Iyin Aboyeji, and some government officials like National Information Technology Development Agency, NITDA officials, and the Minister of Digital Economy, prof. Isa Pantami, decided to put heads together to salvage the situation.

Their efforts resulted in the Nigeria Start-up Bill, NSB, which was submitted to the Presidency and the Federal Executive Council, FEC in October 2021 and got approved in December of that year.

READ ALSO: Senate Passes Nigeria Start-up Bill

After reading through the bill, President Muhammadu Buhari, passed it to the National Assembly in February 2022 and the National Assembly began the processes of reading in March 2022.

In June 2022, the bill attracted the interest of Lagos State government who announced plans to domesticate it at state level.

Interestingly, last Thursday, Senate approved the bill and is looking up to the House of Representatives for harmonisation.

If finally passed into law, the Act will bridge the engagement gap between start-ups and regulators and ensure that harmful regulations are shut down. Among other things, the bill also seeks to provide incentives, such as tax breaks, government loans and credit guarantee schemes for the establishment, development and operation of start-ups in the country.

It will also ensure that start-ups that require licensing from regulators such as the CBN and Securities and Exchange Commission, SEC will enjoy accelerated processes.

This is in addition to the protection of intellectual property for start-ups and for those that want to exit and raise money through the stock exchange to be free to do so.

Reacting to the passing of the bill by the Senate, a co-founder of a start-up, BipEDGE platform, Mr Ubong Ibanga, said: “The passing of the bill by the house of assembly is certainly a step in the right direction. It’s a bill that is very long overdue, and if fully and correctly implemented after it gets the nod of the Federal Government, will greatly improve starting and growing a business in Nigeria. So, as a matter of urgency, the President should just sign it into law immediately”

Also, the Partner and Head of technology, innovation and intellectual property at the law firm of AELEX, Mr. Davidson Oturu, said he considered the passage as a huge milestone.
He said: “Hopefully, the House would pass it within the next few weeks and then it proceeds to the President for his assent.

“There are many gaps we consider the Bill will fill. Firstly, there is the issue around regulatory certainty. A lot of start-ups consider that government policies and regulations spring up suddenly which can affect their business models. Some examples readily come to mind include the cryptocurrency restrictions and banning of motorcycles that affected Gokada’s business model.

“What the Bill seeks to do is to harmonise laws and regulations so that start-ups will be aware of the different matters that will affect them.

“Furthermore, there is a National Council for Digital Innovation and Entrepreneurship that is being set up under the law. This Council will comprise relevant government officials as well as start-ups. The implication of this is that start-ups will have the opportunity to determine the laws and policies that will affect them.

“Due to the challenges faced by taxation of start-ups before they have even begun to scale, the Bill provides tax incentives for start-ups and they also have the opportunity to enjoy some of the incentives under the pioneer status scheme.

“With respect to funding, which is also another problem for start-ups; a seed investment fund will also be set up. The seed investment fund will provide funding for qualified early stage start-ups.

“There are also incentives for other participants that contribute to the growth of the ecosystem such as angel investors; private equity funds/venture capitalists, accelerators and incubators.

“For start-ups that require space and opportunities to build their innovative products and services, technology parks will be set up to meet their needs and provide a conducive environment for them to grow their business ideas. All these are why the bill should receive Mr President’s immediate assent” he added.

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TECHDIGEST – As key players within the African Tech Ecosystem engage with government policy decision-makers and regulators on the prospects of regulating for the future in order to provide solutions for smart governance, the Director-General of the Information Technology Development Agency (NITDA), Kashifu Inuwa CCIE, who presented a keynote address and participated in panel discussions at the Government and Tech (GAT) Summit 2022 in Lagos said that the government needs to work hand-in-hand with the group to co-create regulations that will directly address their lingering concerns.

The DG who expressed the belief that the GAT Summit is coming at a time when players in the tech ecosystem are struggling with the realities of the present regulatory framework and contemplating their alternatives, noted that NITDA’s participation underscores the importance the agency attaches to the prevailing regulatory structure and future possibilities.

“The regulation we are going to create is not one that you can get from textbooks of legal or political views because the generation before us did not have to deal with the kind of situations we are dealing with today”, he maintained.

Inuwa told the audience that blaming the government for negligence is not the right approach towards getting the needed attention as the President Muhammadu Buhari Administration unlike any other has demonstrated the political will to tend the growing demands of the industry.

The Director-General went further to recall the redesignation of the Ministry from Ministry of Communications to Ministry of Communications and Digital Economy which he said was a move by President Buhari to engender exponential growth in the sector.

“We need to look at regulations from the eyes of the citizens; how will it change the way we live because technology has grown beyond what we knew it to be, as it now has enormous power to limit or improve on what we do. Moreso, we need to start applying political principles to technology and not only seeing as a business tool”, Inuwa added.

Inuwa affirmed that the role of the government is to basically create an enabling environment through interventions in terms of laws, policies and others so that Nigerians, and indeed entrepreneurs can have a safer digital space to thrive.

The NITDA Boss while making reference to the Start-up Bill which was passed by the National Assembly, was confident that the bill will help solve myriads of challenges highlighted during the panel discussions.

“Remember we talked about Tech Union, so, under the Start-up bill, there is a National Council for Technology and Innovation which is going to be chaired by Mr. President and all regulators are going to be members and the tech ecosystem will be represented there”, Inuwa stressed.

On the issue of accessing grants from the government, Inuwa explained that labelling and registering should be taken seriously by entrepreneurs as the government and investors need to identify and know their brands before giving out grants or investing in the business.

The DG said “sometimes you need government’s intervention when there is a problem either from the law enforcement agents or other quarters, and for a quick intervention, the government needs to know you and your works; So, this once again underpins the importance of labelling and Incentivization”.

Recalling that that earlier in the year, the Minister of Communications and Digital Economy, Prof. Isa Ali Pantami had led a delegation to Lagos and met with the tech ecosystem in the same hall where discussions centred on combating challenges and how to effect the necessary changes to elicit the needed trajectory, Inuwa emphasized that most of the recommendations reached at the end of the meeting were taken to the Federal Executive Council and approvals were given to achieve three things:

– Work with the FRSC to get more incentives for the tech ecosystem.

– Come up with a bimodal procurement process so that government can patronize entrepreneurs, and

– Protection of ID and patterns of entrepreneurs

Inuwa assured attendees of the event that the government is not sitting in it oars but working tirelessly to encourage and support entrepreneurs and young innovators to succeed.

“I believe, with this kind of conversation, nothing will stop Nigeria from becoming a force to reckon with, when you talk about innovation in the world. The government is a listening government and is ready to work with you”, he asserted.

He however challenged them to also always try to reciprocate the readiness to be available when needed as exemplied by the Federal Government’s presence at their invitations.

“Few weeks ago, we issued a Code of Practice but many people in the ecosystem didn’t read or contribute to the document. We say we want to co-create, not to do so from our offices but how can we co-create when you don’t contribute ideas and share your thoughts accordingly? We still hope you will do so, in order for us to have an encompassing document of regulations that will effectively serve everyone in the value chain.

Meanwhile other high representatives of key regulators and innovators in the technology space added their voices to the call for a more frictionless regulations that will work for the better good of Nigerians and Nigeria.

The maiden edition of the Government and Tech GAT Summit which was jointly organized by Technext and Ripples Nigeria, afforded the physical and virtual audience the opportunity to brainstorm on several issues confronting the industry.

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TECHDIGEST – The Nigerian Startup Bill was officially passed on July 20, 2022, by the Nigerian Senate. The Startup Bill 2022 is awaiting Presidential assent, seeks to create a friendly environment for tech-based startups in Nigeria.

Here are 10 things you need to know about the Startup Bill:

1. Special certification for startups

Before a company can be labelled a startup, it must obtain a certificate known as the startup label. This means that only companies with the startup label will be recognised as startups.

The bill mandates that a Startup Support and Engagement Portal should be established to facilitate the issuance of the startup label and also bridge the gap between regulators and startups. It also spells out the requirements for a company to obtain a startup label. Companies issued with a startup label have obligations under the bill and failure to comply with these obligations can revoke their startup label.

According to the bill, For a company to be named startup, it must be a registered limited liability company that has been in existence for not more than ten years from the date of incorporation, amongst other requirements.

2. Seed Fund for startups

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.

3. Tax Incentives

Companies labelled as startups will benefit from some tax reliefs and incentives under the Bill. These labelled startups are eligible for pioneer status incentives and other tax reliefs. Labelled 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.

4. Bridges the gap between regulatory bodies and startups

The bill enhances regulatory support for startups. It provides for collaboration with regulatory bodies to facilitate seamless processes for labelled startups. The provision for regulatory support applies to bodies like the Corporate Affairs Commission, Nigerian Copyright Commission, and Trademarks, Patent and Design Registries, Securities and Exchange Commission, National Office for Technology Acquisition and Promotion, Central Bank of Nigeria, and Nigerian Exchange Limited.

READ ALSO: Senate Passes Nigeria Start-up Bill

5. Provides for Incubation Programmes

The bill also provides for accelerator and incubator programmes that will grow the startup ecosystem. These incubators will help startups solve operations that they are bound to face in running their business, provide workspace at little or no cost, and serve as breeding hubs for the startups.

6. Creates a legal framework for startups

The bill eradicates the legal uncertainties that have trailed the startup industry in the past. It provides for what qualifies a company to register and obtain startup status. Hence, there is a clear-cut definition of what a labelled startup is and what it is not. It also specifies the legal rules that govern this sector. Flowing from this bill, other authorities can also make policies for the sector.

7. Creates an institutional framework for startups

It clearly establishes the National Council for Digital Innovation and Entrepreneurship. The Council has the institutional powers over startups and the responsibility to formulate policies that encourage the development of startups, monitor, and evaluate startup regulatory frameworks, approve and support startup programmes such as giving of grants, etc.

8. Enhances the training of talents in the industry

The bill 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. The implication of this is that startups and their employees will have access to educational programs that will empower them with the right skills and enhance their competitiveness in the industry.

9. Create an enabling environment for tech-based startups

The bill creates a friendly environment for tech-based startups and promotes 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.

The bill also provides for the establishment of hubs and innovation parks that will provide registration support, free or subsidised workspace and facilitate the entrance of startups into foreign markets, etc.

10. Positions the Nigerian Startup Ecosystem Strategically

The core objective of the bill is to position Nigeria as a leading tech hub in Africa. This is why it seeks to enhance the ease of doing business in the Nigerian tech space and promote local and foreign investment in the tech startup ecosystem.

When this bill receives presidential assent and comes into force, it will leverage the growing digital economy in the country. A regulatory framework like this will give birth to several tech companies and cause existing ones to thrive. It will also make tech startups attractive for investment.

The post Major Highlights Of Nigeria’s Startup Bill appeared first on Tech Digest News.

TECHDIGEST – The Senate on Wednesday passed the Nigerian Start-up Bill, 2022.

The passage of the bill followed the consideration of a report by the Committee on ICT and Cyber Security.

Chairman of the Committee, Senator Oseni Yakubu (APC – Kogi Central), in his presentation, said the bill seeks to provide for the establishment of the National Council for Digital Innovation and Entrepreneurship.

According to him, the council, upon its establishment, would create and develop an enabling environment for technology-enabled start-ups in Nigeria.

Meanwhile, a bill for an Act to provide for the ease of doing business to ensure transparency, efficiency and productivity in Nigeria and for other related matters, on Wednesday, scaled second reading.

The bill was sponsored by the Deputy Senate Leader, Ajayi Boroffice (APC – Ondo North).

The bill after consideration, was referred by the Senate President, Ahmad Lawan, to the Committee on Trade and Investment for further legislative inputs.

The Committee was given two weeks to report back to the chamber in plenary.

In a related development, another bill to establish the Federal Nephrology and Kidney Research and Treatment Centre Hadejia, also scaled second reading on the floor.

The bill, sponsored by Senator Hassan Ibrahim Hadejia (APC – Jigawa North-East), was referred by Lawan to the Committee on Health (Secondary and Tertiary).

The Senator Yahaya Oloriegbe-led Committee was given four weeks to turn in its report.

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