Nigeria, with its burgeoning tech sector and a pool of talented innovators, stands at the precipice of remarkable growth and transformation.
The recently introduced Startup Act presents an unprecedented opportunity to harness this potential. However, for this potential to be fully realized, government support is essential.
Speaking at a webinar hosted by Nairametrics titled “Nigeria Startup Act and Tech Investments: Exploring Possibilities,” Kevwe Jenifa, program delivery, Impact Hub articulated the pivotal role government support plays in amplifying investment interest in Nigeria’s tech sector.
FG key to driving investment
She emphasized that the government’s role is pivotal in driving investment interest toward the tech sector. Based on her presentation, while foreign investors can undoubtedly play a vital role, relying solely on them to kickstart investments could hinder the sector’s growth.
Thus, the government must step in as a catalyst for change.
One of the key challenges she highlights is the need for collaboration between the government and startup support organizations (ESOs).
This collaboration is not just about creating initiatives but ensuring their effective implementation. Startups require not only financial support but also guidance and mentorship to become “investment-ready”, according to her.
Jenifa asserts that access remains a significant hurdle for startup organizations seeking to engage with the government. She adds the need for strategies to facilitate access and partnerships in which the government must create channels through which startups can interact, share ideas, and collaborate on initiatives.
She suggested that the government allocate funds to startups, drawing inspiration from the U.S. where the Startup Seed Investment Fund has revised its requirements to provide grants to tech startups. She reasoned,
- “We can no longer afford to wait for foreign investors or undefined investment attraction. We must invest our resources into nurturing startups, especially at the early stages.” Kevwe noted.
What you should know
Nigeria’s thriving tech ecosystem contributes approximately 30% of Africa’s funded ventures.
This prominence is set to soar further with the recent enactment of the Nigerian Startup Act 2022.
The Nigerian Startup Act is a transformative piece of legislation that provides a robust legal and institutional framework for the advancement of startups within Nigeria.
The act encompasses a multitude of objectives, primarily focused on fostering a conducive environment for startup establishment and operations.
It seeks to nurture the growth of technology-related talent and, most ambitiously, position Nigeria’s burgeoning startup ecosystem as the premier digital technology hub across the African continent.
One of the groundbreaking provisions of this act is the establishment of the Startup Fund.
This fund is poised to act as a catalyst for startup growth and innovation, offering a lifeline to emerging ventures. development. regulatory frameworks that affect startups.
Furthermore, it has the authority to endorse and support various startup initiatives, including the disbursement of grants and other support mechanisms.
Under the aegis of the Nigerian Startup Act 2022, companies that meet the criteria for startup classification are entitled to a range of benefits, including coveted pioneer status incentives and valuable tax reliefs.
Notably, startups characterized by having a workforce of at least ten employees, with 60% of these employees lacking prior work experience within three years of graduation or any vocational program, are eligible for percentage-based tax relief.
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Crowd funding is the way out ,sell your ideas to the youths.I believe we can fund ourselves jointly grow busineses. American startups didn’t wait for the govt .what we need is only favourable policies to excel.