Over the past five years, there has been a steep rise in the volume of investments secured by African startups. All through those years, Nigeria has almost always been the country attracting the most startup investment. Authorities now want to enhance those startups’ capabilities with a dedicated legal framework. 

The Nigerian Senate passed Wednesday (July 20), a startup bill first drafted in June 2021. With its bill passing the Senate review, the national startup ecosystem is getting closer to its goal of ensuring “that Nigeria's laws and regulations are clear, planned, and work for the tech ecosystem.” The two steps remaining are validation by the House of Representatives and the signature of the President of the Republic. 

The main objectives of the bill are "to provide a legal and institutional framework for the development of startups in Nigeria and to provide an enabling environment for the establishment, development, and operation of startups in Nigeria; Foster the development and growth of technology-related talent and position Nigeria's startup ecosystem as the leading digital technology hub in Africa, having excellent innovators with cutting edge skills and exportable capacity.” 

Currently, Nigerian start-ups attract the most investment in Africa. They are thriving thanks to a long battle fought by the private sector. Nowadays, analysts point to their contribution to economic growth in the current digital age, and public authorities are determined to provide a better framework for their development. 

In its nascent start-up bill, Nigeria has provided several facilities that will help accelerate the maturation of startups. The facilities include a label entitling to tax incentives, financial facilities through a dedicated seed fund, and customs facilities as well as training.  

Once the bill is passed, Nigeria will join the list of the few African states that have adopted specific startup regulations. These include Senegal, Tunisia, and Mali.

Muriel Edjo