Two weeks ago, the Federal Government approved tax reliefs and other incentives for startups across the country. The approval, the Presidency says, will consolidate the gains recorded so far in the Nigeria Startup Bill process. Speaking on this important milestone, Mr. Oswald Osaretin Guobadia, SSA to the President on Digital Transformation and lead for the Nigeria Startup Bill, responded to the following questions put forward by this reporter:
What do you make of the Federal Government’s decision to approve tax reliefs for startups?
I am elated but not surprised. Since the President’s New Year speech in January 2021, he has been deliberate about supporting Nigeria’s tech ecosystem. The President has also matched his words with action by sending the Nigeria Startup Bill to the National Assembly and has been eager to see that the bill gets passed. I must note the critical driving push and support from the Vice President, Prof. Yemi Osinbajo, the Chief of Staff to the President, Prof. Ibrahim Gambari, and the Minister of Communications and Digital Economy, Dr. Isa Pantami, in ensuring that the NSB achieves its full potential for the tech ecosystem and youths.
Hence, the tax reliefs that have just been announced are only a microcosm of the benefits the Federal Government hopes to extend to tech companies.
Now that the tax reliefs have been approved by the Federal Government, what steps would you like to see taken and from whom?
For me and others in the tech ecosystem, what is most critical at this juncture is the passing of the Nigeria Startup Bill at the National Assembly and assent by Mr. President, followed by implementation and states’ adoption. If you read this recent approval by the Federal Executive Council, it touches on other critical areas, ranging from public procurement to the PSI scheme and to intellectual property, which are also key provisions of the NSB sitting at the National Assembly.
Thankfully, the chairman, Senate Committee on ICT and Cyber Security, Senator Yakubu Oseni, has given assurances that a public hearing for the bill will be organised right after political parties are done with their primaries. We are confident that the bill will get passed in a matter of weeks after the hearing. After that, we can begin to drive the implementation. Interestingly, some governors, and state House of Assembly members have shown interest in the bill and will be happy to adopt it in their respective states. Kaduna, Ekiti, Ondo and Edo states are leading examples.
Why is this bill important?
If you are young, techie, or enterprising, then the Nigeria Startup Bill will be arguably the most important bill in your lifetime. And this is for a number of reasons. The first is that this bill will make Nigeria the number one destination for tech investments in Africa. What this means is that hundreds of young startups will get funding to launch and scale their ideas. Secondly, young people will experience tremendous rise in their wages. I dare say that not even the major oil companies will be able to match the wages that these tech companies will pay young people. Even more important is that young people in Nigeria will now play on the global stage. I envisage a situation where companies in California will outsource certain software engineering or customer management services to a startup in a Nigerian village. This will in turn create more jobs, raise wages and boost local economies.
Do you think young Nigerians have the skills to benefit from all you say the bill promises?
While we have many skilled people across the country, one of the things the bill proposes is capacity building from tertiary institutions as part of the curriculum and other targeted training and development programmes for people in the tech ecosystem. I can assure you that, in less than a decade from the passage of the bill, we will have developed enough capacity and talent to rival India. It seems audacious but that is the opportunity that this bill presents. However, we must also note that it will take collaborative effort from both the government and industry players to follow through with the implementation of many of the brilliant provisions in the bill.
Will things simply fall in place after the bill gets passed?
Not magically. But there are assurances that things will improve dramatically within the ecosystem. It is for this reason I am urging ecosystem practitioners to participate in the process to ensure that the outcome is in the interest of everyone. If we do not participate in the process, the bill will lay dormant with very little transformational effect. It is, therefore, our duty as members of the ecosystem to engage and own the process. This bill is for you; it’s for all of us. We must act for our future.