The federal government has taken a significant step towards implementing the Nigeria Startup Act by launching an engagement portal dedicated to registering startups in the country. Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, made the announcement on a Tuesday night, highlighting the portal’s broader purpose in facilitating connections with venture capital companies, hubs, and innovation centers.
This milestone comes a year after the Nigeria Startup Act was officially signed into law by the former President, Muhammadu Buhari. The minister shared this news through his social media handle, emphasizing the portal’s vital role in driving the identification and aggregation of Nigerian startups and key players in the startup ecosystem. The overarching objective is to foster engagement and support for these crucial elements of the innovation landscape.
In his announcement, Dr. Tijani invited all Nigerian startups, venture capital firms, hubs, and innovation centers to register on the newly launched portal, startup.gov.ng. The minister expressed enthusiasm about collaborating with industry stakeholders to fully implement the Startup Act, ensuring its benefits are realized within the innovation ecosystem.
The Nigeria Startup Act, signed into law on October 19, 2022, by the former president, aims to resolve legal uncertainties that previously surrounded the startup industry. One of its key provisions is the requirement for companies to obtain a startup label before being officially recognized as startups. This label is essential and can only be acquired through the Startup Support and Engagement Portal.
The Act also mandates the establishment of the Startup Support and Engagement Portal to streamline the process of obtaining the startup label. Beyond this, the portal serves as a crucial bridge between regulatory bodies and startups, fostering better communication and understanding between the two. The Act outlines specific criteria for obtaining the startup label, and companies bestowed with this recognition must fulfill certain obligations, failure of which may lead to the revocation of their startup label.
To qualify as a startup under the Act, a company must be a registered limited liability entity that has been in existence for no more than ten years from its date of incorporation, among other stipulated requirements. Furthermore, startups, once officially recognized, gain access to a dedicated seed fund established by the Act – the Startup Investment Seed Fund. This fund is exclusively earmarked for startups, offering financial support and technological relief to help foster their growth. It signifies a considerable stride in enhancing funding accessibility for startups, allowing them to leverage grants and loans available through the fund to support their operations.
The Nigeria Startup Act also extends tax reliefs and incentives to labeled startups, making it an even more attractive proposition. Such startups become eligible for pioneer status incentives and other tax reliefs. Notably, labeled startups that meet specific criteria, such as having at least ten employees, with 60% of them having no prior work experience within three years of graduation or any vocational program, gain access to percentage-based tax relief.
In conclusion, the launch of the Startup Support and Engagement Portal marks a pivotal moment in the implementation of the Nigeria Startup Act. By providing a centralized platform for registration and engagement, the portal is set to play a crucial role in shaping the future of the country’s startup ecosystem. As startups and key stakeholders embrace this initiative, it is anticipated that the Act’s provisions, including the startup label, access to the Startup Investment Seed Fund, and tax incentives, will contribute significantly to the growth and sustainability of the Nigerian startup landscape. The collaboration between the government and industry players is crucial in ensuring the successful realization of the Act’s objectives and the overall advancement of the innovation ecosystem in Nigeria.
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