Startup Engagement Portal: Pushing Bosun Tijani’s Agenda for Digital Entrepreneurship, by Zeenat Sambo
The interactions and connections that individuals, groups, or organisations have online and in digital environments in Nigeria have become interesting prospects for startups which are able to thrive due to the enabling environment that has progressively developed over the years.
It is quite impressive how digital engagement has driven a lot of youth to become smart entrepreneurs as they leverage technological tools such as online markets, AI delivery mechanisms and services etc. This has assisted in boosting numerous businesses and is gradually bringing about closure to the demand and supply gap, potentially leading to a stable digital market in Nigeria.
Interestingly, the ever-sprawling digital inclusion programmes such as access to technology, digital skills and literacy, community engagement, and development of policies among others have bridged the digital divide by providing equitable opportunities for people to participate and benefit from the digital world.
The saying, “To survive Nigeria all you need is Data,” has become a prophetic statement that foretold the level of social media engagement and digital illiteracy among the youth. This has improved social media engagement, online business facilitation, content consumption, online communities’ interaction, customer interaction etc.
It was therefore not a coincidence that the ICT sector contributed 18.44 percent to the country’s GDP in 2022. It was due to years of meticulous planning and huge investments in the ICT potential of the Nigerian youth.
While he met a thriving ICT industry, the Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, has also in his determination to accelerate ICT literacy and digital inclusion in Nigeria taken a couple of bold and giant steps. One of those historic steps is the launch of the Startup Support and Engagement Portal (https://startup.gov.ng).
The portal which was done with pomp and pageantry by the Minister is a key requirement for the implementation of the Nigeria Startup Act which was signed by ex-President Muhammadu Buhari.
The NSA was an executive bill that became an Act on the 19th of October 2022 as a legal framework to help create an enabling environment and make provision for startups to have access to public and private funding among others.
The startup portal is expected to drive the identification and aggregation of Nigerian startups, venture capital companies, hubs and innovation centres in order to facilitate engagement and support for ecosystem players.
By providing a legal and institutional framework for the development of Nigerian startups, the Act is also creating an enabling environment for the establishment, development, and operation of startups in the country.
For instance, the Act applies to all companies incorporated under the Companies and Allied Matters Act (CAMA) and grants the startup label and organisations and establishments, whose activities affect the creation, support, and incubation of labelled startups in Nigeria.
In order to determine the startups with the right metrics to be considered tech-enabled, the Act provides for “labelling” which is a merit granted to qualified startups and grants them access to incentives.
According to the provisions of the Act, for a startup to be eligible for labeling, it must meet the criteria to be a limited liability company under the CAMA and has been in existence for a period not more than 10 years from the date of incorporation.
It mandates that a Startup Support and Engagement Portal should be established to facilitate the issuance of the startup label and also bridge the gap between regulators and startups. It also spells out the requirements for a company to obtain a startup label. Companies issued with a startup label have obligations under the bill and failure to comply with these obligations can revoke their startup label.
Startups can access a special seed fund created under the Act. The Act establishes a Startup Investment Seed Fund, which is designated for startups alone. It will provide finance and tech relief for startups. This means increased access to funding that will grow the startup ecosystem. It will be easier for startups to fund their operations by leveraging the grants and loans that will be available to them.
Also, companies labelled as startups are expected to benefit from some tax reliefs and incentives under the Act. These labelled startups are eligible for pioneer status incentives and other tax reliefs. Thus, labelled startups with at least ten employees where 60% of the employees have no prior work experience within three years of graduation or any vocational program have access to percentage-based tax relief.
NITDA’s Impact
The National Information Technology Development Agency (NITDA) under the competent watch of Kashifu Inuwa has in recent years been operating with this youth-centred philosophy which says that to empower young people, take them away from the streets and reduce crime, the solution is not to promise them white collar jobs that are not there; rather, the way out is ICT literacy.
In line with its mandate, NITDA has committed a lot of energy and resources to the full implementation of the National Digital Economy Policy which is geared towards creating innovative solutions that will train and engage young citizens on how to be productive while leveraging on ICT.
This initiative led to creation of awareness and deployment of tech literate people to numerous communities, establishment of training centers across the country, startup empowerment programmes, and other numerous activities that have provided people in rural areas with access to digital services and enable them to profitably scale up their businesses.
The creation of various platforms for ecosystem players to gather and collectively discuss the way forward in the unfolding startup revolution has enabled more growth in the industry.
NITDA has liberalised the tech ecosystem in Nigeria by taking ICT knowledge to the doorstep of youth and women in communities where such opportunities merely existed in the dreams of the community dwellers. NITDA has empowered millions of Nigerian youths with skills, tools and life-changing opportunities to live their dreams.
In the academia, media, real estate and other areas, NITDA has come through for a lot of upcoming businesses and supported them to stand on their feet by providing resources, computers, other tools and internet facilities for their operations.
Just to mention a few examples, there was the distribution of 6000 iPads to Nigerian institutions to promote virtual teaching and the partnerships secured with tech giants like Microsoft, HUAWEI, KOICA, Cisco among others. Also, the 2022/2023 Blockchain Technology Training for over 30,000 Nigerians has engaged and supported innovations towards building digital governance and inclusion.
Last Line
There is no doubting the fact that the Minister has come up with the best ideas for innovation and revolution in the sector. He has also met the right foundation with what his predecessor did in office and what NITDA has been doing for years.
With the launch of the startup portal, Nigerian startups are in for a bountiful period and the economy will be the ultimate beneficiary of the provisions of the Act and the Minister’s passion towards its implementation.
Under the watch of President Bola Ahmed Tinubu and this vibrant Minister who are determined to elevate the living standard of the Nigerian youth by providing the funds, the mentorship and training for them to be take advantage of the limitless opportunities in the digital space, this country will soon be flooded with millions of digital entrepreneurs who are gainfully employed and also creating opportunities for others to exhibit their potential and earn a decent living.
Zeenat Sambo is Tech Digest Staff Writer in Abuja
