“Driving state adoption to all states of the federation is the only way to stitch the fabric of innovation across Nigeria.” — Oswald Osaretin Guobadia, Former Lead, Nigeria Startup Act.
Nigeria’s startup ecosystem is a paradox of immense potential and persistent challenges. Success stories of startups in Nigeria have garnered global recognition, yet the systemic barriers of fragmented policies, regulatory hurdles, and funding gaps hinder the broader ecosystem’s growth. Recognising the need for an enabling framework that eliminates these challenges and supports startups, the Nigeria Startup Act (NSA) was enacted. The Act provides incentives and support for startups to grow, flourish and boost the innovation and technology sector. Over 2 years down the line, the NSA has influenced the perception of stakeholders in the ecosystem by renewing hope and optimism in the hearts of founders, entrepreneurs and innovators. Olusola Amusan, co-founder of Vesti, highlighted the tangible impact of the NSA, noting that “Things have improved significantly thanks to the NSA. Over the past three years, we’ve raised more than $2 million—an achievement that might not have been possible without this framework.” This sentiment underscores the Act’s role in creating a more favourable environment for startups to grow and succeed.
However, as Santi Ruiz pointed out in his article How to Actually Implement a Policy, “Sometimes policymaking isn’t done when the policy is made; often, it is just getting started”. For the NSA, policymaking began with driving awareness and mobilising for states to adopt the Act to fit local realities. Tailoring the Act to regional contexts ensures that states can be well-positioned to address unique local needs and unlock the potential of tech-enabled businesses to empower their economies. The benefits include job creation, investment, and reduced unemployment, leading to economic growth. State-level adoption also bridges skill gaps, ensuring inclusive community development and greater participation in the digital economy.
To drive this vision forward, a coalition of stakeholders—including the National Information Technology Development Agency (NITDA), the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) Digital Transformation Centre, and a team led by Oswald Osaretin Guobadia (Former Lead, Nigeria Startup Act) and Tracy Okoro Isaac (Former State Adoption Lead)—launched the Nigeria Startup Act States Adoption project. This collaborative effort aims to ensure the Act’s benefits reach every corner of the country, empowering local economies and positioning Nigeria as a hub for innovation and entrepreneurship.
The State Adoption process mirrored the big tent approach
The approach to this project relied on participatory strategies that ensured inclusivity and alignment with local realities.
- Stakeholder mapping was a crucial starting point, laying the foundation for the initiative. It involved identifying and engaging key players—government agencies, technology hubs, private sector leaders, and civil society organisations—to ensure that the efforts reflected the diverse needs and perspectives of all relevant actors. This inclusive approach was essential for building a unified vision and fostering collaboration.
- To drive engagement, awareness campaigns and workshops were organised in key cities like Kano, Lagos, and Abuja, targeting stakeholders at various levels. But the outreach didn’t stop there. Volunteer-driven campaigns amplified these efforts, creating a groundswell of support that resonated across the country and mobilised millions of Nigerians to rally behind the cause.
- To ensure the solutions were as effective as possible, baseline assessments were conducted in multiple states. These assessments helped pinpoint the unique gaps and opportunities within each local ecosystem, enabling the development of tailored strategies that addressed specific regional needs.
- Finally, training programs were rolled out for government officials, ecosystem leaders, and private sector actors. These programs were designed to equip participants with the knowledge and skills needed to champion and sustain NSA adoption efforts, ensuring long-term impact and fostering a culture of innovation and collaboration across the board.
A Wave of Impact on the Continent
The stakeholder-driven approach has already yielded significant results. States like Kaduna, Rivers, and Anambra have adopted the NSA, while over ten others are advancing localisation efforts. These efforts have inspired optimism across the ecosystem, as highlighted by innovators like Kemisola Bolarinwa, CEO of Nextwear Technologies, who lauded the NSA’s potential to attract investment and nurture startups.
Ifeanyi Morah, founder of Yaada, stated in an interview that the NSA represents a lifeline for his bootstrap-stage business. “The tax rate and reliefs will help companies like ours to begin to enjoy and give us the leeway to innovate better and try to succeed in our visions,” he added.
The journey is far from over. Scaling these efforts requires sustained engagement, continuous refinement of strategies, and deeper collaborations. With more States moving to adopt the Act, Nigeria’s tech ecosystem is poised for remarkable growth.
References
- YouTube. (n.d.). Accessing the impact of the Nigeria Startup Act 2 years after its implementation. Retrieved from https://www.youtube.com/watch?v=SGlFfyKa0A8. Accessed January 21, 2025
- Nigeria Startup Act. Nigeria Startup Act. Available at: https://startup.gov.ng/. Accessed January 21, 2025.
- Yaada. Digital Solutions for Nigeria’s Creative Economy. Available at: https://yaada.ng/. Accessed January 21, 2025.
- NextWear Technologies. Innovative Wearable Technology in Nigeria. Available at: https://www.nextweartech.net/. Accessed January 21, 2025.
- Statecraft Inc. How to Actually Implement a Policy. Available at: https://www.statecraft.pub/p/how-to-actually-implement-a-policy. Accessed January 21, 2025.
- WIPO Nigeria Startup’s Act Impact on Innovation. Retrieved from https://www.wipo.int/en/web/global-health/w/news/2024/news_0004. Accessed January 21, 2025.