The Nigeria Startup Bill (NSB), has been approved by the Federal Executive Council and will be forwarded to the National Assembly for its passage into law.
After the presentation of a Memo from Prof. Isa Ali Ibrahim (Pantami), the Honourable Minister for Communications and Digital Economy, the Nigeria Startup Bill was adopted at the Council meeting on Wednesday, December 15, 2021.
The NSB will provide a legal framework and institution for the development of startup companies in Nigeria. It will provide a enabling environment to support the development, operation and establishment of startups in Nigeria. The Federal Government will continue to support diversification efforts by the NSB.
According to The Big Deal’s November 2021 Report, Nigerian startups have raised $1.37 Billion in 2021. This is the highest figure in Africa. The Nigeria Startup Bill will help Nigerian startups maintain their leadership role in Africa as well as around the globe.
It will also encourage the growth of technology-enabled startups as well as Innovation Driven Enterprises. IDEs can be found in many sectors of the economy including finance, education, and insurance.
McKinsey & Company reported that Nigeria had approximately 3,300 tech-enabled startups, with more than 200 operating in the Financial Technology sector. The Bill will harmonize laws that affect the startup ecosystem throughout the country and establish and strengthen the Startup community in all Federal States.
The Bill will also create incentives for the expansion of local startups in different parts of Nigeria, Africa, and globally.
To ensure that effective collaboration from the ground up, a ” Big Tent” approach was used in the Bill’s drafting. To raise awareness and support the Bill, consultations and engagements were held, including crucial working sessions with Ministries, Departments and Agencies, and Focus Group Sessions.
These focus groups were divided into three categories: early and late/growth-stage startups, youth and entrepreneurs support organisations, civil society organizations and investors, donors, and corporate organizations. All geopolitical zones in the country were represented at the townhall meetings.
The Honourable Minister, Ministry, and all stakeholders in the private and public sectors of the economy are grateful for President Muhammadu Buhari’s tremendous support. The NSB, and other relevant policies, will continue to position Nigeria for the use of technology to transform Nigeria into a world-leading digital economy.