Abuja: TECHz – News Desk
The National Information Technology Development Agency (NITDA), acting through its subsidiary, the Office of Nigerian Digital Innovation (ONDI), has initiated a strategic co-creation session in Abuja to fast-track the operationalisation of incentives provided under the Nigeria Startup Act (NSA).
This pivotal gathering brought together diverse stakeholders across the public and private sectors to discuss actionable measures for translating the groundbreaking legislation into tangible, measurable benefits for startups, investors, and the broader Nigerian innovation ecosystem.
Representing NITDA’s Director-General, Kashifu Inuwa CCIE, the National Coordinator of ONDI, Ms. Victoria Fabunmi, stated that while vital structural progress has been made since the enactment of the NSA – such as the establishment of the Startup Consultative Forum and the digital startup portal – the ultimate test of the legislation lies in whether founders can easily access the relief and resources promised to them. She stressed that actors in the ecosystem must be able to benefit significantly from the legislation, calling for stakeholders to shift their attention away from the mere existence of the Act and toward the practical activation of incentives designed to stimulate enterprise growth.
A critical takeaway from the session was the absolute necessity of cross-sector collaboration. During a context-setting presentation, Ms. Elma Andah, Acting Lead of Strategy, Research, and Analytics at ONDI, revealed that the NSA provides over 31 distinct incentives distributed across six major categories. Because these incentives are highly interconnected, no single institution can deliver these benefits independently; implementation requires coordination across more than 15 MDAs. For instance, a single startup might simultaneously require tax incentives from revenue agencies and regulatory approvals for export, while its investors rely on the startup labelling system to access tax credits.
Nigeria’s digital ecosystem continues to show massive potential, boasting over 3,000 startups that attracted approximately $410 million in funding in 2024 despite a challenging global economic environment. To sustain this momentum, participating government institutions have been challenged to clearly establish ownership of the incentives assigned to them, eliminate institutional bottlenecks, simplify access procedures, and introduce strong monitoring and accountability mechanisms.
The Nigeria Startup Act, signed into law on October 19, 2022, offers a comprehensive fiscal and regulatory framework to position the country as Africa’s leading digital hub. Once officially evaluated and issued a “Startup Label” through the unified Startup Portal, eligible tech companies and their investors can unlock a suite of strategic benefits. These include access to the Pioneer Status Incentive for early-stage tax holidays, full deductions for in-country research and development expenses, and exemptions from specific training levies.
Additional provisions feature capital gains tax exemptions for angel investors, venture capitalists, and private equity firms on equity investments held for at least two years. The legislation also establishes a dedicated Startup Investment Seed Fund designed to inject capital into early-stage ventures, supporting tech development and bridging the financing gap. Furthermore, startups gain expedited regulatory approvals and the ability to test innovative products in controlled environments via designated innovation desks.
The collaborative dialogue in Abuja marks a critical step forward in ensuring these statutory provisions move from paper to practice. By identifying implementation gaps and developing workable delivery mechanisms, NITDA and its inter-agency partners aim to strengthen the NSA’s contribution to Nigeria’s economic development objectives.
