Nigeria tech startups get tax reliefs, other incentives

BY EMEKA EJERE

In a bid to harness the potential of the sector, the Federal Executive Council (FEC), has approved tax reliefs and other incentives for tech startups

The approval which was to further harness the country’s digital innovation and entrepreneurship ecosystem, followed the presentation of a memo by the Minister of Communications and Digital Economy, Prof Isa Pantami.

The gesture is expected to enable the implementation of strategies to encourage and support the development and growth of more Innovation-Driven Enterprises (IDEs), which have the potential to create millions of additional jobs in the country.

It will also help to develop innovative solutions to societal problems, and rapidly grow, as well as diversify the economy, in line with the National Digital Economy Policy and Strategy (NDEPS) for a Digital Nigeria.

Some of proposed strategies resulted from recommendations that were made at an interactive forum held on February 22, 2022, where the minister led a federal government delegation on a working visit to the Lagos digital innovation ecosystem.

The delegation included the Director-General of NITDA, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), the Post-Master-General and the Managing Director of Galaxy Backbone Plc.

The visit 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 delegation also paid a visit to three selected tech startups, namely: Flutterwave, valued at $3 billion; Treepz, with a funding of $3.1 million and Reliance Health, with $48.3 million in funding.