Posted Sat, Oct 16, 2021 1:48 PM

Nigeria Startup Bill: National Stakeholders Roundtable

The Digital Economy Policy Commission of the Nigerian Economic Summit Group (NESG) on Thursday 13th of October 2021 held a Pre- 27th Nigerian Economic Summit (#NES27) event with the theme “The Nigeria Startup Bill: National Stakeholders Roundtable” tomorrow, Thursday 13th of October, 2021. 

While delivering the opening remarks, NESG board member Mr Nnanna Ude said that Nigeria has a vibrant startup ecosystem with over 750 startups that continue to grow. He stated the importance of technological startups in pivoting innovation and economic growth but that it was essential to ensure the implementation of the Nigeria Startup bill as it will be critical to the country’s economic diversification agenda. He noted that the NESG would continue to evaluate the opportunities and examine the impact of the government’s decision on the development of the technological sector by strengthening collaboration that will enhance the development of Nigeria’s startup ecosystem.  

“Flutterwave raised 170 million dollars series officially crossing the line of 1 billion dollars. Stringent conditions by regulatory agencies threaten the survival of startups, perhaps since regulators don’t take account of industry and market forces. The government should work with the private sector to ensure businesses remain locally and globally competitive while enacting legislation that addresses our startup potential instead of constraining it,” Mr Ude stated. 

In his keynote address, the Honourable minister for communications and the digital economy, Dr Isa Ali Pantami, said that the private sector should continue to champion collaboration between all stakeholders to ensure the growth of the Nigerian economy. “We must continue to encourage partnership, collaboration and engagement between the public and private sector to discuss and make recommendations that will be implemented according to the mandate of the institutions they represent for the benefit of all Nigerians,” Dr Pantami stated. 

Furthermore, the honourable minister revealed that the value of global startups is up to 3.8 trillion dollars, which is higher than the individual GDP of some G7 countries and, by implication, more than seven times the GDP of Nigeria, which accommodates about 200 million people. He noted that the earlier Nigeria prioritises startups, the better for the country as it is vital for economic development. He also revealed that his ministry had commenced formal communication with the office of the AGF to facilitate the startup bill, which will give priority to indigenous technological products stating that startups provide real-life solutions to existing problems and provide jobs while encouraging people to come up with innovative procedures that will develop Nigeria’s digital economy. 

Mr Oswald Guobadia, SSA to the President Digital Transformation, said that the Nigeria Startup bill would be a great platform to engage the country’s tech ecosystem, develop the sector and grow the economy. He noted that the bill is one of many key initiatives that will ensure relative certainty, access to capital and overall development. 

Ms Adia Sowho, Chief Marketing Officer MTN Nigeria, urged stakeholders to maintain commitment as the bill is key to a thriving digital economy. She reiterated the need for liberalisation of the sector to generate benefits for small businesses, massively simplifies taxes, and supports the emergence of potential entrepreneurs.  

During the breakout session on “Incentives for key stakeholders in the Startup Ecosystem (Startups & Investors)”, which was facilitated by Tosin Faniro-Dada - MD/CEO, Endeavor Nigeria, it was suggested that the bill should look into providing exemptions from capital gains, leave for employees and as much as an 8-year tax break for startups.  

Mr Jude Feranmi, CEO of Republicraft, in the breakout session on “Enabling legislation that works for the ecosystem”, said asides from creating unicorns, young businesses should be encouraged to grow to add to overall economic development and that innovation should be encouraged as a means of developing the ecosystem. In the third breakout session on ‘Making the Startup Bill work: Governance for Effective Implementation’, Ms Yemi Keri, CEO Hackerbella said that there was a need to have conversations with sub nationals and a proper audit of the bill should be done to ensure the bill doesn’t conflict with existing laws.