FG to spend N10bn annually on startup act, sets up implementation committee

The federal government has inaugurated the Nigeria Startup Act (NSA) implementation committee to help build the country’s digital innovation ecosystem.

The committee consists of 27 members drawn from academia, private industry players, relevant government agencies, among others.

Isa Pantami, minister of communications and digital economy inaugurated the committee in Abuja on Wednesday.

In October 2022, President Muhammadu Buhari signed the startup bill 2022 into law.

The law seeks to create and develop an enabling environment for technology-enabled startups in the country, as well as provide them with access to special seed funds.

Speaking on behalf of the president at the inauguration, Pantami said the implementation committee needs to work towards integrating and improving on the achievements of the ICT sector in the economy.

“Today, there is the focus on a knowledge-based economy rather than a resource-based economy,” the minister said.

“The gross domestic products of countries like the UK, the US, China, and India are rising because they invested in their startups.

“Today, digital entrepreneurship, digital innovation and knowledge are building the global economy and we need to invest in our youths that have innovative ideas.

“The implementation of the act is an attempt to turn things, make us a producer, and exporter of ICT products rather than importer.”

Pantami stressed on the need to support talented youths and prioritise what they produce for domestic consumption as well as export.

The minister said the committee is expected to coordinate operational plans and establish the baseline of the ecosystem in terms of digital innovation and entrepreneurship.

“The members have the responsibility of mentoring our younger ones in that area, identifying their challenges like financially and reviewing their critical requests,” he explained.

He noted that the federal government had agreed to expend N10 billion annually to support the act, which can either be given to the startups as seed funds, grants, or loans.

Pantami added that the committee will utilise the National Information Technology Development Agency (NITDA) as its secretariat.

On his part, Kashifu Inuwa, director-general of NITDA, said the government has shown commitment to creating an enabling environment for young people’s innovative ideas to thrive for wealth creation and national development.

Inuwa, also the secretary-general of the committee, said startups had proven to be key drivers of economic growth.

He, therefore, charged the committee members to help create the legal and institutional framework on which the act can be successfully implemented.