Govt commits to startup devt, tasks businesses on N10b funding

The Federal Government said it is committed to ensuring that the startup ecosystem thrives in the country despite challenges. It urged developers to access the N10 billion startup capital.

However, the slow pace in accessing the funds was due to the governing council yet to sit.

This was revealed at an interactive workshop held in Lagos on Wednesday with the theme: ‘Streamlining Access to Incentives under the Nigerian Startup Act (NSA)’, organised by the Office for Nigerian Digital Innovation (ONDI), a Special Purpose Vehicle of National Information Technology Development Agency (NITDA).

The National Coordinator of ONDI, Victoria Fabunmi, said the workshop aimed, among other things, to rally private sector stakeholders in the digital innovation ecosystem on the challenges, opportunities and government-backed incentives available under the NSA, which was passed into law in 2022.

Fabunmi emphasised the government’s commitment to ensuring a thriving startup ecosystem by providing financial support, regulatory clarity, and strategic partnerships that empower businesses to scale as fast as possible.

She harped on the synergy between the private sector and the government in ensuring that the provisions of the NSA positively impact the innovation ecosystem.

According to her, there are lots of interventions to encourage more participation in the NSA, saying there is also the Startup Portal that will serve as a one-stop shop for all ecosystem players and activities. She said plans are also on the ground to bring together the private sector, the public sector, and academia, which includes universities, and research outfits to develop the ecosystem.

While calling on startups to access the N10 billion funding, she noted that apart from the funds, which are currently domiciled with the Nigerian Sovereign Investment Authority, adding: “Of course, realistically speaking, N10 billion is not enough to go around the country, not even in a state like Lagos State, right? But, of course, it is to encourage more funding activities, some from venture capitalists, and some from angel investors.

“Secondly, there are tax incentives, as it is right now, and that’s to encourage the growth of startups because tax sometimes burdens their funding capacity and their activities. There are also going to be research grants for academia to encourage research and development. Of course, there’s going to be access to markets, because, as you know, the AFCFTA has come to stay, and there’s the Digital Trade Protocol. So, if we want to build capacity, we have to look beyond Nigeria.”

According to her, Africa is ripe for the taking and under the Free Trade Agreement, there’s going to be fewer obstructions and barriers to the movement of people, but also products and services.

“The NSA remains a cornerstone for innovation-driven enterprises, positioning Nigeria as a leading technology hub in Africa. As stakeholders continue to shape the Act’s implementation, more initiatives will be launched to ensure sustained engagement, policy effectiveness, and startup success,” she stated.
Calling on state governments to domesticate the NSA, Fabunmi said the ONDI understands that the NSA is a federal law, but we live in states.

“So, if we do not bring it to the grassroots, if we do not bring it to the people… Because everybody is not going to go to Abuja to access anything, it has to be replicated in the states. So, we encourage states to domesticate their unique context and nuances because every state has its own unique needs, requirements and even situational cases,” he said.