By Blessing Emmanuel, Abuja
The National Information Technology Development Agency (NITDA) has taken a significant step towards driving the implementation of the Nigeria Startup Act (NSA) with the inauguration of a Startup Labelling Committee. This committee, inaugurated by NITDA Director-General Kashifu Inuwa CCIE, comprises representatives from both the public and private sectors.
Enacted on October 19, 2022, the NSA established a legal and institutional framework to foster the development and growth of Nigerian startups. A critical provision within the Act is the Startup Label, which recognises eligible startups and grants them access to various benefits outlined in the NSA. The issuance of the Startup Label hinges on a thorough assessment and validation process to ensure a startup meets the eligibility criteria as defined by the Act. The newly formed committee will play a pivotal role in overseeing this process.
In his address at the inauguration ceremony, Inuwa emphasised President Bola Ahmed Tinubu’s administration’s unwavering dedication to fostering an environment conducive to the growth and success of young Nigerian innovators. He acknowledged the pivotal role startups will play in propelling the nation’s economic development and the significance of the committee’s work in nurturing and supporting these enterprises.
Inuwa elaborated on the various initiatives and support mechanisms the government plans to implement, aimed at reducing hurdles and providing financial assistance and mentorship opportunities to young entrepreneurs. He expressed optimism about the future, asserting that with the right support, these budding innovators could transform their ideas into thriving enterprises, contributing significantly to job creation and the overall economic prosperity of Nigeria in line with President Tinubu’s priority to “reform the economy to deliver sustained inclusive growth.”
He urged stakeholders to join hands in creating a robust ecosystem that would empower the next generation of entrepreneurs to flourish and contribute to the country’s progress. Inuwa added that the committee will be instrumental in establishing a robust legal and institutional framework for the successful implementation of the Startup Act. Their collaborative efforts will ensure a participatory approach that benefits all stakeholders within the Nigerian startup ecosystem.
“The composition of the committee reflects the emphasis on collaboration. Representatives from government agencies, industry experts, investors, and startup founders will bring their diverse perspectives and experiences to the table. This collaborative approach is expected to lead to a more efficient and effective labelling process, ultimately benefiting the growth of Nigerian startups,” he stated.
The National Coordinator of the Office for Nigeria Digital Innovation, Victoria Fabunmi, outlined the terms of reference for the advisory committee. These include reviewing and evaluating startups’ applications for the label based on criteria defined in the Act, periodically updating labelling criteria to ensure alignment with industry trends, and conducting impartial evaluations of submitted applications.
Furthermore, the committee will recommend the issuance or otherwise of the Startup Label based on defined criteria, provide feedback and recommendations on areas of improvement for rejected applications, and engage startups for more clarity where necessary. It will also periodically review its activities and data on labelling to identify opportunities and gaps that policymakers may need to address, review workload capacity, and recommend a fair ceiling for the number of applications to be considered per period.
The Labelling Committee comprises nine members: four representatives of incubators (ISN Rep, North and South), two representatives of the public sector (NITDA, NSIA), two representatives of civil society, and the Portal Coordinator who will serve as Secretary.
The inauguration of the Startup Labelling Committee marks a significant milestone in the implementation of the Nigeria Startup Act. With a multi-stakeholder committee guiding the process, the Act has the potential to unlock the immense potential of Nigeria’s startup ecosystem and contribute significantly to the nation’s economic development.