The Nigeria Start-up Act: Why It Matters to Start-up Ventures -By Pelumi Abdul

Spread the love



By definition, start-ups are young businesses or companies founded for the purpose of creating an unparalleled product or service and bringing the same to the market. Recently, start-ups in Africa are contributing positively to their communities’ growth. And Nigerian start-ups alone have a portion of 1.37 billion out of Africa’s 4 billion US dollars funding as at 2021. This could be attributed to the fact that the country has the highest number of start-ups  in the continent.

Nevertheless, unfavorable government policies, lack of capital, stringent administrative bottlenecks and over saturation of start-up ventures in the country among others are creating a high rate of failure for these start-ups. For instance, within 2010 and 2018 over 61% start-ups in the country could not survive the business environment. As a result, there is a need to spur development and motivate prospective participants to engage successfully in the start-ups venture ecosystem. Thus, led to the enactment of the Nigeria Start-up Act 2022 to create an enabling environment for start-up ventures and rectify setbacks witnessed in past years.


Expand Your Learning with E-Books on PrimsolLog in to and enjoy the best E-journals, textbooks, and many more

To subscribe to Primsol, go to

For further enquiries/assistance, send an email to [email protected] or call 08050298729

The Nigeria Start-up Act 2022

The Nigerian presidency alongside 30 tech leaders -including Kola Aina, founder of Ventures Platform- and Isa Patami, the Nigerian minister of digital economy created and drafted out the Nigeria Start-up Bill.

The first draft of the Nigeria Start-up Bill was first submitted to the Nigerian Federal Executive Council (FEC) and the council approved it in December 2021. Early February 2022, the bill was sent by the President to the Nigerian National Assembly and the Bill passed its third reading at the national house of assembly by July this year. On the 19th of October, 2022, President Muhammad Buhari signed the bill into law as the Nigerian Start-up Act, 2022.

The act was created to strengthen the country’s start-up ecosystem with primary goals of creating an enabling environment for start-up ventures, bridging the gap by providing a clear regulatory framework and adequate local content support in the start-up ecosystem.


Why the Nigeria Start-up Act Matters to Start-up Ventures

To begin with, the enactment of the Nigeria Start-up Act would largely promote entrepreneurship, provide jobs and unleash the inherent economic potential in the country’s citizens particularly the youths. With the Act, the country might soon become a major economic force to reckon with globally. Thus, the need to identify the key innovations in the Act as they matter to the growth and development of Start-up ventures in the country.


Some of the Key Highlights of the Nigeria Start-up Act

For any company to be recognized as a start-up under the Act, such company must obtain a label certificate. Only a company that has been less than 10 years in existence from incorporation date among other requirements is qualified to be given the label certificate. The Act applies only to tech-enabled start-ups and the label is to make startups qualified for incentives provided in the Act. Moreover, the Act creates a legal framework for start-ups as they can be registered as a company and uncertainties as to the legal status of start-up ventures are erased.

Another key provision in the Act is that of seed funding. That is there shall be funding for start-ups at an early stage by the Nigeria Sovereign Investment Authority (NSIA). The Start-up Investment Seed Funding is to aid growth in the start-up ecosystem.

Also, start-ups are entitled to tax incentives and relief. Although certain conditions must be fulfilled, start-ups can enjoy 5 year’s tax free from the date of labeling and access loans from the CBN or other financial institutions with minimal or interest free.

Another provision in the Act that matters to start-ups is the creation of the National Council for Digital Innovation and Entrepreneurship, with the power to formulate policies, evaluate regulatory frameworks, encourage start-ups’ development and exercise institutional powers over start-ups from other functions.

The Act further supports the creation of start-up hubs, physical and virtual innovation parks and clusters in each state in Nigeria to prevent over concentration of start-ups in Lagos and Abuja alone. Also, provisions are made for talent’s training and development to empower the concerned persons with the necessary and competitive skills to thrive in the Nigerian start-up ecosystem.



It is clear, glare and beyond the need of microscopic scrutiny that the Nigeria Start-up Act would provide the enabling environment for start-ups to thrive in the country and would be an investment ground for foreign investors to invest in start-up ventures and thus contribute to economic growth of the country. Thus, the Act matters a lot to start-ups in the country.







Call Bridget Edokwe Esq on 08060798767 or send your email to [email protected]

Price: ₦25,000.00 or £25 per copy [Hard Back– 10 chapters/637 pages] Contact Information Email: [email protected], [email protected] WhatsApp only: 0803-703-5989 Voice Call – Mobile phones: 0817-630-8030, +234-909-965-1401, 0705-767-0347 Landline: 09-2913581, +234-9-2913499, Office Address: 50 Julius Nyerere Crescent, [Next To The World Bank], Asokoro, Abuja – Nigeria. Bank Account Details; Bank Name: UBA Plc.; Account Name: International Dispute Resolution Institute; Account Number: 1014072579

[TRENDING]: Costs in Civil Proceedings is another best-selling book By Chike B. Okosa, PhD {ORDER NOW}

Get this book at the selling price of = N=10,000 per copy. Copies of the book may be ordered directly from the following book sellers: Abuja: Mohammed – 08072518081, Lagos : Ibidemi – 08051395562, Ajibode: 08034768357, Enugu : Loveth – 08037320902, Akwa Ibom : Helen – 08034086536

Get ‘Personal Property Law in Nigeria’ By Chief Mike A.A. Ozekhome, SAN (FREE)

Click below to download FREE

This topical new book engages fully the knotty areas of Lawyer/client, Lawyer/court and lawyer/lawyer relations.

Price: N7,000

Contact: 08036064470, 08183531785


At a selling price of = N=10,000 per copy, copies of the book may be ordered directly from the following book sellers: Abuja : Mohammed – 08072518081, Lagos: Ibidemi – 08051395562, Ajibode: 08034768357, Enugu: Loveth – 08037320902, Ikot Ekpene: Helen – 08034086536

CLICK HERE TO KNOW MORE ABOUT THIS BOOK Call: 08038784639 to get a copy handy now @ N5,000. The book is also available at the Nigerian Law School Book Bookshop Lagos, call the number to pick your copy


BESTSELLER: Commercial and Economic Law in Nigeria By Chief Mike Ozekhome, SAN [ORDER NOW] To ORDER click the link

Price – N20,000 only To Order – WhatsApp, text or call – 08037009616 Office – No 1 Dyaji Close, Rayfield, Jos

Buy the Book on Military Law, authored by a Veteran Military Lawyer, and launched personally by the then COAS.


To get a copy kindly Call 07044444777, 07044444999 & 08181999888 or visit us at: Investment House, 7th Floor, 21/25 Broad St., Lagos. Buy online @

Available at Frank Agbedo & Co. Crown Chambers. 5th floor, left wing, Nipost Building, Lagos Island, Lagos State. Tel: 08033254471, 09077950432 Email: [email protected]

Steps To Subscribe To the Court of Appeal Reports Nigeria

%d bloggers like this: