Small firms to access special seed fund as Buhari signs startup bill into law

October 19, 2022 2:46 pm

President Muhammadu Buhari, on Wednesday, signed the startup bill into law.

Isa Pantami, minister of communications and digital economy, disclosed this in a post via his official Twitter handle.

The bill seeks to create and develop an enabling environment for technology-enabled startups in the country.

“His excellency, Muhammadu Buhari has just assented to Nigeria startup bill. It has now become Nigeria startup act, 2022. It was an executive bill, initiated by both [the] office of the chief of staff, and the office of the minister of communication and digital economy. Congratulations to all,” the tweet reads.

BREAKING!
His Excellency, @MBuhari has just assented to Nigeria Start-up Bill. It has now become Nigeria Start-Up Act, 2022. It was an Executive Bill, initiated by both Office of the Chief of Staff & the Office of the Minister of Comms & Digital Economy. Congratulations to all!

— Prof. Isa Ali Ibrahim, CON (@ProfIsaPantami) October 19, 2022

The new legislation aims 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”.

It also seeks to “position Nigeria’s startup ecosystem as the leading digital technology centre in Africa, having excellent innovators with cutting edge skills and exportable capacity”.

The startup act, 2022, makes provision for “the development and growth of technology-related talent”.

With the document, companies will be required to obtain a certificate known as the ‘startup label’, before they can be regarded as a startup entity.

According to the document, startups can also access a special seed fund created under the law. The fund will provide labelled startups with finance and relief to technology laboratories, accelerators, incubators and hubs.

In July 2022, the senate passed the Nigerian startup bill 2022 following a report by its committee on ICT and cyber security.

Presenting the report, Oseni Yakubu, chairman of the committee, said that the bill sought to establish the National Council for Digital Innovation and Entrepreneurship.