FG Okays Tax Reliefs, Other Incentives For Start-ups
BY EDMOND ODOK – As part of efforts at promoting the National Digital Economy Policy and Strategy (NDEPS) for a digital Nigeria, the Federal Executive Council (FEC) has approved a plan to incentivise and further harness the country’s digital innovation and entrepreneurship eco-system
The Minister of Communications and Digital Economy, Professor Isa Ali Ibrahim Pantami said the approval will enable the implementation of strategies that encourage and support the development and growth of more Innovation-Driven Enterprises (IDEs) with potentials to create millions of additional jobs in the country.
Prof Pantami said FEC’s endorsement followed the presentation of a memo by the Ministry, adding that the development will also help to develop innovative solutions to societal problems, and rapidly grow, as well as diversify the Nigerian economy, in line with the NDEPS documents.
According to the Ministry, some of the proposed strategies arose from recommendations made at an interactive forum held on 22nd February 2022, where the Minister led a Federal Government delegation on a working visit to the Lagos digital innovation ecosystem.
The delegation comprised the Director-General of NITDA; Executive Vice Chairman of Nigerian Communications Commission (NCC); Post Master General; and Managing Director of Galaxy Backbone Plc.
The visit had provided a useful platform for open and interactive discussions on the ecosystem’s pertinent challenges and interventions required from the government to enable the ecosystem achieve its full potential. The forum was attended by 143 ICT and Startup Companies.
The team also visited three selected tech startups, listed as; Flutterwave (currently valued at US$3 billion), Treepz (with current funding of US$3.1 million) and Reliance Health (with US$48.3 million in funding).
FEC had earlier approved the Nigeria Startup Bill (NSB) and forwarded to the National Assembly with the process currently about 90% complete. It is expected that the Council’s approval of agreed incentives will further consolidate the gains recorded for far in the process.
The Ministry explained that focused implementation of NDEPS emphasises the importance of the innovation and startup ecosystem to the development of an indigenous digital economy.
It also promised to continuously put Nigeria in a position to develop the ecosystem towards transforming Nigeria into a country with a sustainable and thriving digital economy.
