Technology in Nigeria is a fast-growing industry that has gained momentum in the last few years. Its prospects have led states like Nasarawa and Kaduna to prioritise the creation of technology villages in order to harness the growth potential of their tech sector. International organisations like Google have also had eyes on Nigeria and went ahead to open a Developer’s Space office in Lagos in 2020.
The Startup Act serves as an engine of collaboration between the private sector and the government particularly its regulatory agencies, to ensure that the laws of the country favour the growth of its tech ecosystem. It seems the Nigerian government, with the support of the Office of the Chief of Staff and the Ministry of Communications and Digital Economy have finally seen the potential of tech in Nigeria to lead and dominate Africa’s digital economy.
The Act will be in servitude to all tech-enabled start-ups incorporated under the Companies and Allied Matters Act. To be regarded as a start-up under this Act, there are set criteria to follow, such as having been registered and operational for less than 10 years with an objective to leverage existing innovative technology advances to solve a problem or provide a service.
Start-up labeling is an important factor of this Act. It is a certification or license showing that a business is tech-enabled, allowing them access to the incentives provided under the Act. The Start-Up and Engagement portal is a housing ground for start-ups to engage directly with relevant MDAs, and benefit from the Act through their services.
As the general elections draw nearer, the future beneficiaries of the Startup Act have been well considered, in hopes the new administration will cooperate in seeing through consistent implementation. It is understandable that the tech space has been given precedence over other industries, granted the advancements of the global digital economy.