The National Information Technology Development Agency (NITDA) has challenged government institutions and private-sector stakeholders to move beyond the policy framework of the Nigerian Startup Act (NSA) and ensure that its incentives translate into tangible benefits for startups, investors and other players in the innovation ecosystem.
The agency made the call at the NSA Incentives Activation Co-Creation Session in Abuja, organised by NITDA’s subsidiary, the Office for Nigerian Digital Innovation (ONDI), to identify implementation gaps and develop practical mechanisms for activating the incentives provided under the legislation.
Representing NITDA Director-General, Kashifu Inuwa, ONDI National Coordinator, Victoria Fabunmi, said the focus must now shift from policy formulation to effective delivery, stressing that the success of the Act would ultimately be determined by the extent to which entrepreneurs could access the opportunities it created.
Inuwa said the establishment of the Startup Consultative Forum and its governance structures had created an important platform for sustained engagement among stakeholders, while the launch of the digital startup portal had established vital channels for interaction.
He, however, stressed that the real test of the legislation would be its impact on businesses operating within the innovation ecosystem.
According to him, government agencies, private-sector actors and other ecosystem stakeholders must work collectively to remove institutional bottlenecks and ensure that startups can access the opportunities created by the Act.
Inuwa said the participating institutions possessed different mandates, resources and policy instruments that, if properly coordinated, could significantly improve the operating environment for Nigerian startups.
“We want to go to the next level. We want to be able to say that the actors in our ecosystem have been able to benefit significantly from the legislation that has been passed, and it wouldn’t happen without everyone sitting in this room,” he said.
He urged stakeholders to shift attention from the mere existence of the legislation to its practical implementation, particularly the activation of incentives designed to promote investment, innovation and enterprise growth.
The NITDA DG noted that implementing the NSA required the involvement of institutions across several sectors, including trade, finance, communications, innovation, digital economy, science and technology.
He said bringing the institutions together was necessary to identify gaps, clarify responsibilities and develop workable mechanisms for delivering the incentives to their intended beneficiaries.
Inuwa also called for continuous engagement and feedback among stakeholders, noting that the success of the Act would depend largely on the ability of implementing institutions to collaborate effectively and respond to the evolving needs of the startup ecosystem.
He said recommendations from the session would contribute to ongoing efforts to strengthen the implementation framework and create an environment where Nigerian startups could scale, attract investment and compete effectively in global markets.
Providing further insight into the scope of the implementation challenge, Acting Lead, Strategy, Research and Analytics at ONDI, Ms Elma Andah, said the NSA provides more than 31 incentives spread across six major categories.
She identified the categories as tax and fiscal incentives, regulatory support, funding access, exports and trade, ecosystem enablers, and training and capacity building.
Andah explained that delivering the incentives required the participation of more than 15 government institutions, making inter-agency coordination central to the effective implementation of the legislation.
“No single institution can deliver all these incentives alone. Implementation requires coordination across more than 15 MDAs,” she said.
In a context-setting presentation titled, “Operationalising the Incentive Provisions of the Nigerian Startup Act,” Andah said the Act, which was signed into law on October 19, 2022, was designed to promote innovation, improve access to funding, strengthen collaboration and position Nigeria as a leading technology and innovation-driven economy in Africa.
She noted that Nigeria’s startup ecosystem had continued to demonstrate significant potential, with more than 3,000 startups and several globally recognised technology companies.
According to her, Nigerian startups attracted about $410 million in funding in 2024, despite the challenging economic environment.
Andah highlighted areas of progress under the Act, including engagements with states on adoption, the operational startup support engagement portal, improved startup labelling timelines, the Startup Consultative governance framework, the Startup Investment Seed Fund framework and ongoing efforts to operationalise the regulatory sandbox framework.
She, however, stressed that the interconnected nature of the incentives meant that no single institution could deliver them independently.
Using practical examples, Andah explained that a startup seeking funding could simultaneously require tax incentives, while an enterprise seeking to export its products might need regulatory approvals. Similarly, investors seeking tax credits could depend on access to the startup labelling system.
She therefore challenged participating institutions to clearly establish ownership of the incentives assigned to them, strengthen inter-agency coordination, simplify access procedures and introduce effective monitoring and accountability mechanisms.
The session provided stakeholders with an opportunity to identify implementation gaps and develop practical approaches for ensuring that the incentives contained in the Startup Act become accessible to startups, investors, innovation hubs and other intended beneficiaries.
Stakeholders noted that the outcome is expected to support a more coordinated implementation of the NSA and strengthen its contribution to Nigeria’s innovation, investment and economic development objectives.