Introduction
The Federal Government of Nigeria, through the Minister of Communications, Innovation and Digital Economy – Dr. Bosun Tijani on Wednesday November 22, 2023 announced the launch of Nigeria’s Startup Portal (the Portal) accessible here https://startup.gov.ng/. The launch of the Portal opens a pathway for eligible Startups (“Labelled Startups”) to secure various incentives contained in the Nigerian Startup Act (NSA) and amongst other objectives, eases the registration processes of Startups with relevant regulators, ministries, departments, and agencies of government.
Some of the incentives the Portal will provide to Labelled Startups include:
- Ease of Registration for Licenses and Permits: The Portal will enable easy access to Labelled Startups to register for licences and permits and secure issuance of same expeditiously. As such, licences such as fintech licences from the Securities and Exchange Commission (SEC) as well as the Central Bank of Nigeria (CBN) may now be applied for and obtained by Labelled Startups through the Portal.
- Access to the Information of Startup Consultative Forum: One of the initiatives of the NSA is the establishment of a Startup Consultative Forum comprising representatives and stakeholders from labelled startups, venture capitalists, angel investors, incubators and accelerators. Through the Portal, easy access is made for collaboration amongst stakeholders, publication of available incentives for Labelled Startups as well as deliberations, thereby promoting inclusion.
- Opportunities for Government Contract Engagement: The Portal will publish various opportunities by which Labelled Startups can be involved or engaged in government contracts. This will increase collaboration between the government and Startups leading to the growth of a vibrant innovation ecosystem. By working together, government entities and startups can create partnerships that benefit both parties and contribute to the overall development of the local business environment.
- Access to Finance Information: The Portal is aimed at ensuring that Labelled Startups have access to grants and loan facilities administered by the CBN, the Bank of Industry or other bodies statutorily empowered to assist small and medium-scale enterprises. Additionally, the NSA stipulates that a Startup Seed Investment Fund into which an annual sum of N10 Billion Naira shall be paid will be created to support Labelled Startups with funding. With the launching of the Portal, Labelled Startups can easily gain information regarding access to the Fund as well as various financing options available to them.
- Ease of Participation. The Portal will also serve as the platform for Labelled Startups to participate in beneficial programmes such as incubation and accelerator programs, pitch competitions, fellowships, etc. This will open doors for more Startups to easily gain access to resources, infrastructure, training, mentorship, networking opportunities, exposure and visibility within the entrepreneurial ecosystem.
- Lodging of Complaints: The Startup Portal is a direct link through which Labelled Startups and other industry stakeholders may lodge complaints as well as offer recommendations to the National Information Technology Development Agency (NITDA).
Conclusion
Perhaps one of the major advantages the Startup Portal provides is that Startups may now engage with the Ministries, Departments and Agencies (MDA) including the Corporate Affairs Commission (CAC), SEC, CBN, Trademarks, Patents and Designs and Registry with ease and expect expedited feedback regarding their applications. This largely bridges the gap between Labelled Startups and regulatory authorities and will also encourage Startups to become more regulatory compliant. For more details on the incentives available to Labelled Startups under the Portal, please see our article here LEGAL AND STATUTORY FRAMEWORK FOR VENTURE CAPITAL BUSINESS IN NIGERIA AND THE NIGERIAN START-UP ECOSYSTEM
