The Nigerian senate has finally passed the much-anticipated Nigerian Startup Bill, raising excitements in the country’s startup ecosystem.
Lawmakers passed the Startup Bill on the 20th of July 2022, after the bill passed its third reading.
The passage followed a report by the senate committee on ICT and cyber security.
According to the Committee’s chairman, Oseni Yakubu, the bill was sponsored by the the deputy senate leader and senator representing Ondo north, Ajayi Boroffice.
Nigeria drafted the bill, with the inputs of all stakeholders in the startup tech ecosystem.
One of the aims is to provide a clear regulatory framework for all startups in the country’s tech industry.
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Moreover, with this successful outing at the Senate, the bill now heads for the House of Representatives for another three readings.
From there, it would be sent to the Presidency for assent and it would become law.
Why the bill is important:
The Nigerian Startup Bill is very important because the tech ecosystem is critical in the development of the country.
Also, Nigeria became ripe for a startup bill to protect the startup ecosystem.
It also proves to be necessary to align governments’ policies in line to promote the growth and development of the ecosystem and proffer innovative solutions to Nigeria’s startup tech environment.
Presidency introduces:
The startup bill was introduced in 2021.
This was because, before 2021 and while the world evolved in terms of technological advancements, Nigeria lacked the needed policies to drive similar growth and development.
Consequently, the government introduced the startup bill to promote high-tech entrepreneurship developments.
This will, in turn, serve as the catalyst for the country’s economic growth.
Also, the bill seeks to clarify Nigeria’s laws and regulations, removing every ambiguities that may interfere with the technology development in the country.
By this, startup tech investors and investments will be encouraged and protected.
Additionally, the startup bill has an objective of transforming the digital-entrepreneurial ecosystem in Nigeria.
Meanwhile, what are the benefits of this startup bill to Nigerians?
Aside the objectives, the bill equally seeks to promote and encourage tech innovative solutions to solve Africa’s problems.
Benefits of the startup bill:
Meanwhile, as the bill heads to the lower chamber, it is imperative for you to know how the Nigerian Startup bill will benefit you.
1: It will improving local innovative contents and promote adoptions.
The bill will help in promoting digital acquisition and digital technology usages across the country. This will see the promotion of local innovative tech contents and placing Nigerian innovators on the globe.
2: It will spur innovation in Nigeria by fostering a generation of innovative youths that use innovation to confront and solve Africa’s problems, as well as the worlds.
Note that a large fraction of the Nigerian youth is tech-savvy.
So, the bill will bring out the best in them by providing the enabling atmosphere for competitive acceleration.
3: The startup bill, when becomes law, will bring about income sustainability for, especially the youths, who are tech-savvy and highly creative.
4: With improved and sustainable income for the youths, this bill will in turn, boost the economy of the country, continent and the world at large.
It becomes so even as many Gen Zs and Millennials will be greatly empowered with policies that support innovation, creativity and entrepreneurial development.
5: Also, the bill makes provisions for training and developing talents within the startup ecosystem in Nigeria.
By this, startups can gain trainings and capacity building programmes to help them scale.
Additionally, startup founders will get necessary and professional mentoring and gain the knowledge on how best to run and grow a startup into unicorns.
6: The bill will link startups with investors, as well as provide seed funds for startups to scale.
Startups can get government grants as well as access to financial supports through credit guarantee schemes.
7: With the startup bill in place, Nigerian startups can get tax breaks from the government, thereby helping in their sustainability.
There is also a 35% tax exemptions for some startups which the bill will provide.
Startups, by this bill, will enjoy tax incentives from government too.
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