President Muhammadu Buhari has signed the Nigeria Startup Bill into law.
Isa Pantami, Minister of Communication and Digital Economy announced this in a tweet on Wednesday, shortly after President Muhammadu Buhari signed.
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 the Chief of Staff’s Office and the Minister of Communications and Digital Economy’s Office.” Congratulations to everyone.”
The new Act is a collaborative effort between Nigeria’s tech startup ecosystem and the Presidency to harness the potential of our digital economy through co-created regulations and support the growth of Nigeria’s startup ecosystem.
Seed Fund for startups is one of the bill’s provisions. This means that startups will be able to access a special seed fund established by the Bill. The bill creates a Startup Investment Seed Fund that is only for startups. It will help startups with finance and technology. This means greater access to funding, which will help to grow the startup ecosystem. Startups will find it easier to fund their operations by leveraging the grants and loans available to them.
Additionally, the bill included provisions for some tax incentives; startups will benefit from some tax reliefs and incentives under the Bill. These startups are eligible for pioneer status incentives as well as other tax breaks. Startups with at least ten employees, 60% of whom have no prior work experience within three years of graduation or completion of any vocational program, are eligible for percentage-based tax relief.
The bill also includes a program to improve talent training and development in the Nigerian startup ecosystem. It offers assistance to academic research institutions focused on startup development.
The bill is also expected to foster a welcoming environment for tech-based startups and promote the ease of doing business. This means that the tech sector will become more appealing to investors and will attract new entrants. As a result, it will give birth to new startups while also allowing existing ones to thrive.