By Ayo Onikoyi

Nigeria’s Startup Act, recently signed into law by President Muhammadu Buhari, is being positioned as a transformative framework designed to energize the country’s innovation economy. The landmark legislation introduces an array of incentives for startups, establishes a national regulatory structure, and creates avenues for sustained long-term investment in digital and technological infrastructure. As implementation begins, numerous legal and business experts, have shared views on the potential impact of the Act.

Among the significant measures contained within the Startup Act is the provision of specialized labeling for eligible startups. Labeled startups will enjoy substantial benefits such as tax relief, streamlined compliance procedures, access to funding, and dedicated government assistance through a newly formed National Council for Digital Innovation and Entrepreneurship, as well as a centralized Startup Portal. Supporters applaud these ambitious efforts, underscoring the potential to position Nigeria as a competitive hub for technology and innovation in Africa. However, some observers remain cautious, closely monitoring how these provisions will unfold in practical terms.

Technology law expert Kehinde Ojadamola Takuro has provided analysis on the incentive structures embedded within the Act. She critically examines whether these incentives will effectively facilitate startup growth or potentially lead to increased compliance burdens. While highlighting the involvement of private-sector stakeholders in drafting the legislation, Takuro expresses cautious optimism, noting that the incentives reflect genuine efforts aimed at fostering the growth of tech-enabled startups in Nigeria. Additional commentary from analysts highlights that beyond incentives, the Startup Act also promotes public-private partnerships aimed at funding technological infrastructure projects. These initiatives include expanding broadband connectivity, developing innovation clusters, and strengthening cybersecurity frameworks. Experts suggest that the Act’s broader infrastructure objectives could significantly enhance Nigeria’s attractiveness to international investors, venture capitalists, and global tech companies.

As startups and stakeholders continue to assess the Startup Act’s implications, clear guidelines from regulatory agencies will be critical to determining its effectiveness. The legislation represents a pivotal development in Nigeria’s legal and regulatory landscape, signaling a significant commitment to fostering innovation and entrepreneurial growth across the country.