The Nigeria Startup Act (NSA), signed into law in 2022, is starting to make its impact felt. The National Information Technology Development Agency (NITDA) reports that a total of 12,948 startups have registered on the official Nigeria Startup Portal. This enthusiastic response underpins the potential of the NSA to transform Nigeria’s innovation landscape, setting the stage for a more dynamic and globally competitive tech-driven economy.
The NSA’s focus on establishing a clear legal and regulatory framework for startups addresses a key challenge that has previously stifled growth. The portal’s registration figures, along with strong participation from venture capitalists, angel investors, and support organizations, demonstrate the sector’s readiness to capitalise on the improved environment for investment and innovation.
Dr. Bosun Tijani, Minister of Communications, Innovation and Digital Economy, highlights the advantages for companies joining the portal: “Registered startups become eligible for statutory incentives, resources, and opportunities under the Nigerian Startup Act.” These benefits could prove transformative for young companies, potentially including:
- Access to dedicated startup investment funds to fuel expansion and innovation efforts.
- Tax incentives and reliefs to offset operating costs, freeing up resources for growth.
- Enhanced visibility, opening doors to partnerships, grants, and government support programs.
The Startup Support and Engagement Portal is designed to be more than just a registration platform. Tijani emphasises its role as “a consultative forum where issues affecting startups can be discussed and properly defined for action by government and other stakeholders.” This feedback mechanism can help policymakers refine the NSA, make adjustments based on real-world experiences, and create programs that truly address the needs of the startup community.
The Future of African Innovation
Nigeria’s commitment to fostering a supportive startup ecosystem highlights the growing recognition of entrepreneurship as a driver of economic growth across the African continent. The NSA’s success could serve as a model for other developing nations looking to build their own thriving tech sectors and diversify their economies.
While the initial registration figures are a positive sign, the NSA’s long-term success will depend on several key factors:
- The effective implementation of promised incentives and their impact on startups’ bottom lines.
- Government’s receptiveness to feedback and ability to adapt support mechanisms as the sector evolves.
- Success in attracting increased foreign investment to power the growth ambitions of Nigerian tech companies.
