The interactions and connections that individuals and organisations have in the digital space in Nigeria have become interesting prospects for startups that are able to thrive due to the enabling environment that has progressively developed over the years.
It is impressive how the engagement has driven a lot of youth to become smart entrepreneurs as they leverage technological tools such as online markets, AI delivery mechanisms and services, etc. This has assisted in boosting numerous businesses and is gradually bringing about closure to the demand and supply gap.
Interestingly, the ever-sprawling digital inclusion programmes, such as access to technology, digital skills and literacy, community engagement, and the development of policies, have bridged the digital divide by providing equitable opportunities for people to participate in and benefit from the digital world.
The saying, “To survive Nigeria, all you need is data,” has become a prophetic statement that foretold the current level of social media engagement. This has improved online business facilitation, content consumption, online community interaction, and customer interaction. It was not a coincidence that technology contributed 8.44 per cent to the country’s GDP in 2022.
While he met a thriving industry, the Minister of Communications, Innovation, and Digital Economy, Dr Bosun Tijani, in his determination to accelerate ICT literacy and digital inclusion in Nigeria, has taken a couple of bold moves. One of those historic steps is the launch of the Startup Support and Engagement Portal.
The portal is part of the implementation of the Nigeria Startup Act (NSA), signed by ex-President Muhammadu Buhari. The NSA became an act on October 19, 2022. The legal framework makes provision for startups to have access to public and private funding. It is expected to drive the identification and aggregation of startups, venture capital companies, hubs, and innovation centres.
The Act applies to all companies incorporated under the Companies and Allied Matters Act (CAMA) whose activities affect the creation, support, and incubation of labelled startups in Nigeria. In order to determine those with the right metrics to be considered tech-enabled, the Act provides for “labelling,” merit granted to qualified startups, and grants them access to incentives.
For a startup to be eligible for labelling, it must be a limited liability company that has been in existence for a period of not more than 10 years. The Act mandates that a portal be established to facilitate the issuance of the label and close the gap between regulators and startups. It contains the requirements for a company to obtain a startup label as well as obligations that must be complied with.
Startups can access a special fund created under the Act. The Act establishes a Startup Investment Seed Fund, which will provide finance and tech relief. This means increased access to funding, which 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.
The startups will further benefit from some tax reliefs and incentives under the Act. These labelled startups are eligible for pioneer status incentives and other tax reliefs. Thus, 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 programme, have access to percentage-based tax relief.
NITDA’s Impact
The National Information Technology Development Agency (NITDA), led by Kashifu Inuwa, has in recent years been operating with a youth-centred philosophy, which says to empower young people, take them away from the streets, and reduce crime. The solution is not to promise them white-collar jobs that are not there; rather, the way out is ICT literacy.
NITDA has committed energy and resources to the full implementation of the National Digital Economy Policy, geared towards creating solutions that will train and engage young citizens on how to be productive while leveraging ICT. The creation of platforms for ecosystem players to gather and discuss the way forward in the startup revolution has enabled more growth.
This initiative led to the creation of awareness and the deployment of tech-literate individuals to numerous communities, the establishment of training centres across the country, startup empowerment programmes, and other activities that have provided citizens in rural areas with access to digital services and enabled them to profitably scale up their businesses.
NITDA has liberalised the tech ecosystem in Nigeria by taking ICT knowledge to the doorstep of youth and women in localities where such opportunities merely existed in the dreams of community dwellers. The agency has empowered millions of Nigerian youths with skills, tools, and life-changing opportunities to live their dreams.
In academia, the media, real estate, and other areas, NITDA has come through for a lot of upcoming businesses and supported them to stand on their feet by providing resources, computers, other tools, and internet facilities for their operations.
There was the distribution of 6,000 iPads to Nigerian institutions to promote virtual teaching and the partnerships secured with tech giants like Microsoft, Huawei, Koica, Cisco, and others. Also, the 2022–2023 Blockchain Technology Training for over 30,000 Nigerians has supported innovations towards building digital governance and inclusion.
The minister has come up with the best ideas for innovation and revolution in the sector. He met the right foundation laid by his predecessor, coupled with NITDA’s efforts. With the launch of the portal, startups are in for a bountiful period. The economy will be the ultimate beneficiary of the provisions of the Act and Mr Tijani’s passion for its implementation.
President Bola Ahmed Tinubu and the Minister are determined to elevate the living standard of youths by providing funds, mentorship, and training for limitless opportunities in the digital space. Nigeria will soon be flooded with millions of digital entrepreneurs, who will also create opportunities for others to exhibit their potential and earn a decent living.
Zeenat Sambo is a Tech Digest staff writer in Abuja
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