A Review of the New Nigeria Startup Act 2022: Benefits and Challenges for the Tech Ecosystem in Nigeria

Abstract

The opening section of the new Nigeria Startup Act (NSA, Section 1(d)) recognizes the objective of the Startup Act 2022 as “positioning Nigeria’s startup ecosystem as the leading digital technology center in Africa, having excellent innovators with cutting edge skills and exportable capacity.” The Startup Bill signed into law on the 20th of October 2022, further established a ‘Startup Investment Fund” to provide relief to startups, technology laboratories, accelerators, incubators and hubs in Nigeria. In light of the Nation’s strategic reforms for development and the push for technological advancement amongst nations, the Nigerian government passed the 2022 Nigeria Startup Act as a regulatory framework to strengthen and structuralize the Nation’s fastest growing sector, as well as provide the necessary support for startups while recognizing the importance of Education, Funding and Intellectual Property to the development of the Tech ecosystem in Nigeria. The NSA also assures government involvement in the Nigerian tech ecosystem which will further strengthen and instill trust in investors and stakeholders alike. In this paper, we will attempt a review of notable provisions of this Act, implications for the Nigerian tech ecosystem, challenges posed by the NSA and recommendations for policy.