In 2022, Nigeria took a landmark step toward strengthening its innovation ecosystem with the passage of the Nigerian Startup Act (NSA). While the Act established a robust federal framework to support startups through regulatory clarity, incentives, and institutional coordination, its long-term success depends not only on federal coordination but also on effective implementation at the state level, where most startups operate and where regulatory and administrative conditions directly shape their growth.

Recognising this, the Digital Technology Evolution Foundation (DTEF) designed and executed a comprehensive State Adoption Programme to translate the NSA into an implementable, context-sensitive framework for subnational governments

Supporting State-Level Adoption of the NSA

DTEF’s State Adoption Programme was structured to bridge the gap between national ambition and state-level execution. Between November and December 2023, DTEF convened ecosystem engagements and validation sessions across multiple states, including Rivers State, Anambra State, Lagos State, Kwara State, Ondo State, Kano State, Oyo State, Plateau State, and Osun State. 
These engagements were structured, multi-stakeholder processes aimed at:

• Sensitising state governments and regulators on the provisions and intent of the Startup Act

• Identifying state-specific legal, regulatory, and institutional gaps

• Validating proposed adaptation models with ecosystem actors

• Co-creating practical pathways for adoption and implementation

Multi-Stakeholder Coordination as a Core Strategy

A defining feature of DTEF’s approach was its deliberate convening of diverse actors. Across the states, DTEF coordinated engagement processes that brought together:

• State ministries and executive officials

• Investment promotion agencies and regulators

• Startup founders and ecosystem builders

• Youth groups and digital entrepreneurs

• Private-sector representatives

This inclusive model strengthened policy legitimacy and ensured that state-level adoption conversations were grounded in lived entrepreneurial experience. Through validation sessions, stakeholders interrogated how federal provisions, such as startup labelling, regulatory sandboxes, and incentive mechanisms could be meaningfully operationalised within state systems. In many cases, discussions revealed gaps in coordination mechanisms, unclear regulatory mandates, or the absence of dedicated innovation governance structures

Providing Technical Guidance and Policy Adaptation Pathways

Beyond convening, DTEF provided substantive technical support to state governments. This included:

• Advising on how to domesticate the Startup Act through state executive instruments or legislative processes

• Recommending governance structures aligned with each state’s administrative architecture

• Proposing coordination mechanisms to link ministries, regulators, and ecosystem actors

• Identifying regulatory bottlenecks affecting startup formation, taxation, digital infrastructure access, and business registration

Importantly, DTEF adopted a tailored approach in supporting states in diagnosing their unique startup ecosystem constraints and mapping adaptation pathways tailored to their institutional capacity and economic priorities.

Conclusion

The passage of the Nigerian Startup Act marked a significant milestone for Nigeria’s innovation ecosystem. DTEF’s State Adoption Programme ensured that this milestone did not remain confined to federal policy architecture. Through structured engagements, technical guidance, and capacity-building within the subnational level, DTEF helped provide practical roadmaps for subnational action.