- Nigerian startups lead Africa, raised $1.37bn in 2021-report
By Hillary Asemota
The Federal Executive Council (FEC) on Wednesday approved the Nigeria Startup Bill (NSB).
The Bill, according to Ministry of Communications and Digital Economy will consequently be forwarded to the National Assembly for passage into law.
This is coming to the fore even as the Nigerian start-ups are far ahead their African counterparts in innovation, grossing over $1.37 billion in 2021, according to a report authenticated by the Big Deal.
The Technical Assistant on Research and Development in the Ministry Dr. Femi Adeluyi, excitedly said via a statement that the Bill was approved at the Council following the presentation of a memo by the Minister of Communications and Digital Economy, Prof. Ibrahim Pantami.
According to him, the NSB is to provide a legal and institutional framework for the development of startups in the country, adding that when eventually passed into law, it will also provide an enabling environment for the establishment, development and operation of startups in Nigeria.
According to a November 2021 Report released by The Big Deal, Nigerian startups raised $1.37 billion in 2021, ranking first in Africa.
The NSB will support Nigerian startups to maintain their leading role in Africa and across the world. It will also spur the growth of technology enabled startups and Innovation Driven Enterprises (IDEs) in several sectors of the economy, including finance, agriculture, education, health and insurance, among other sectors.
A Report by McKinsey & Company indicated that Nigeria has roughly 3,300 tech-enabled startup companies with more than 200 of them operating in the Financial Technology (Fintech) sector.
The Bill seeks to establish and strengthen the Startup ecosystem in all States of the Federation and will harmonize the laws affecting the startup ecosystem across the country.
Furthermore, the Bill will create incentives to encourage the expansion of indigenous startups into different parts of Nigeria, Africa and even globally.
A “Big Tent” approach was adopted in the drafting of the Bill to ensure effective collaboration right from the grassroots. Consultations and engagements were conducted to create awareness and support for the Bill, including critical working sessions with Ministries, Departments and Agencies (MDAs) and Focus Group Sessions.
The focus groups were categorized into early and late/growth stage startups, youth and entrepreneur support organizations, civil society organizations, investors, donors and corporate organizations. Town hall meetings were also held across all the geopolitical zones of the country.
Adeluyi, said, Pantami, the Ministry and the stakeholders across the public and private sectors of the economy, remain grateful for the tremendous support of President Muhammadu Buhari, on the achievement, adding that the NSB and other relevant policies will continue to position Nigeria to leverage technology in order to transform Nigeria into a leading digital economy.