Problem Statement
Despite Nigeria’s vibrant startup ecosystem, sustainable growth has been hampered by challenges such as regulatory hurdles, inadequate funding, and poor infrastructure. Startups across the country often lack access to the necessary resources and support to thrive. To address these issues and drive innovation in the technology sector, the Federal Government introduced the Nigeria Startup Act (NSA) in 2022, offering incentives and support to nurture startups. However, recognising that a one-size-fits-all approach is insufficient, state-level adoption of the Act is crucial to cater to the unique needs of various states and regions. To advance this goal, a coalition of stakeholders has actively championed the State Adoption of the Nigeria Startup Act.
Data Collection
The coalition of stakeholders consists of the National Information Technology Development Agency (NITDA), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), Oswald Osaretin Guobadia (Former Lead, Nigeria Startup Act) and Tracy Okoro Isaac (Former State Adoption Lead). A comprehensive data-gathering phase to uncover the unique needs and opportunities within each state was initiated. This involved ecosystem assessments, stakeholder consultations, workshops, and baseline surveys.
Key Findings Include:
- States lack a widespread and clear understanding of the Act’s economic and social benefits.
- Low skill levels among many states make them unprepared to leverage the provisions of the NSA or adopt emerging technologies.
- Fragmented ecosystems weaken collaboration across states and limit partnerships between government, businesses, and civil society.
- States face legislative challenges in drafting laws that align with the NSA.
These findings highlighted the need for a collaborative, tailored, and inclusive approach to ensure the NSA’s success.
Solution Development
Recognising the project’s complexity, a strategy centred on participation, capacity building, and advocacy was adopted. A well-crafted, evidence-based solution was built around the following pillars:
- Stakeholder Mapping and Engagement
Key players, including government officials, private sector leaders, tech hubs, and civil society groups, were identified to foster inclusivity. Stakeholder engagement events, such as town halls, workshops, and focus groups, provided platforms to educate participants about the NSA and its potential benefits. Advocacy campaigns further amplified awareness, showcasing how the Act could drive innovation, create jobs, and attract investment. These efforts built trust and consensus among stakeholders, laying the groundwork for successful adoption.
- Capacity Building
Addressing the skill deficit was a cornerstone of the strategy. This Included;- Training programmes tailored to policymakers, private sector actors, and volunteers focus on the Act’s provisions and real-world applications.
- Creation of resources like toolkits, policy guides, and simplified materials to enhance understanding.
- Onboarding state representatives and training them to champion the NSA’s adoption and adapt its provisions to local needs.
- Legislative Support
Facilitating the adoption of the NSA at the state level required collaborative drafting of legislation. The team worked closely with the state Houses of Assembly to develop laws that align with the NSA while addressing state-specific challenges. Technical consultations ensured the bills were actionable, inclusive, and reflective of local realities.
Results
The impact of the efforts was both measurable and transformative. They are highlighted as follows;
- Adoption Efforts Across States
Beyond the three pioneers of Kaduna, Rivers and Anambra, more than 10 states began advancing adoption efforts. Highlights include:- Lagos State has initiated the development of an Innovation Bill, aligning with its position as Nigeria’s economic powerhouse.
- Gombe State has started integrating the National Startup Act (NSA) into its State Development Plan alongside grassroots campaigns to raise public awareness.
- Abia State has taken steps to align with the National Digital Literacy Framework while expanding its media outreach to engage a broader audience.
- Kano State has begun incorporating national digital transformation policies into its state-level initiatives.
- Nasarawa State has made significant progress, moving through the drafting stage with early agency efforts showing promising developments.
These efforts reflect a growing commitment across states to embrace innovation and digital transformation, paving the way for a more inclusive and technologically advanced future.
- Economic Impact
The NSA created a supportive environment for startups, leading to increased funding, collaboration, and job creation. Ifeanyi Morah, founder of Yaada—a Kaduna-based fintech platform, attested to this fact. In acknowledging the potential impact of the NSA, he opined that; “The tax rate and reliefs companies like ours will begin to enjoy giving us the leeway to innovate better and try to succeed in our visions.”
- Capacity Building Success
Policymakers, industry leaders, and volunteers were empowered to adapt the NSA to local realities. Training programmes ensured that stakeholders could leverage the Act’s provisions effectively. Olusola Amusan, co-founder of Vesti, lauded the impact of the Act by stating that, “Things have gotten better than they used to be thanks to the NSA. In the last three years, we’ve raised over $2 million—something that might not have been possible without this framework.”
Conclusion
The state adoption of the Nigeria Startup Act highlights the importance of collaboration and region-specific strategies in ensuring policy success. By tailoring solutions to address unique regional needs, the implementation process has left no stakeholders behind, setting a benchmark for policy innovation across Africa. With the Act’s successful localisation across some states, Nigeria is driving a culture of innovation, creating opportunities for entrepreneurs, and attracting investment into its technology sectors.
As the adoption effort is gaining more traction, Nigeria is well-positioned to become a global leader in innovation. Leveraging its youthful population and growing digital literacy, the country is creating an environment where startups can flourish. This commitment to fostering a thriving ecosystem will pave the way for a future marked by economic growth, competitive industries, and technological advancements that resonate well beyond its borders.