The Nigeria Startup Act 2022 is a law designed to create a supportive legal and institutional framework for technology startups in Nigeria. Signed in October 2022, it was developed with significant input from the startup community and is one of several startup acts adopted or proposed across Africa. This explainer covers what the Act does, who can benefit and how to apply.
Note: incentives and procedures under the Act depend on implementing regulations and agency guidelines. Always check the latest information on the official startup portal and with a qualified adviser.
What the Act aims to do
- Provide a clear legal definition of a technology startup
- Encourage investment in startups
- Support the development of digital skills and talent
- Coordinate government support for innovation
- Make it easier for startups to work with regulators
Key institutions
National Council for Digital Innovation and Entrepreneurship
The Act establishes a council, chaired by the President, to set policy direction for the startup ecosystem. The National Information Technology Development Agency (NITDA) acts as its secretariat and implements much of the Act.
Startup Investment Seed Fund
The Act provides for a seed fund to support early-stage labelled startups.
Startup Consultative Forum and portal
The Act creates a forum for ecosystem stakeholders to engage with government, and an online portal through which startups can apply for labelling.
Who qualifies as a labelled startup?
In broad terms, the Act targets young, innovative technology companies. Requirements include that the company is registered in Nigeria under the Companies and Allied Matters Act, is within a set number of years of incorporation, has a product or business model that is innovative and technology-based, and has a minimum level of Nigerian shareholding among its founders. Check the exact criteria on the official portal, as they are set out in the Act and its guidelines.
Incentives the Act provides for
- Tax incentives for qualifying labelled startups and certain investors
- Access to the seed fund and other financing schemes
- Regulatory sandboxes, allowing startups to test products under regulator supervision
- Support for intellectual property registration
- Training and capacity-building programmes
- Consideration in government procurement
How to apply for startup labelling
- Register your company with the Corporate Affairs Commission if you have not already
- Create an account on the official Nigeria Startup Act portal
- Submit the required company documents and information about your product
- Await review and approval of your startup label
- Keep records up to date to retain your status and access incentives
Limitations to keep in mind
- Benefits depend on implementation, funding and agency guidelines, which can change
- Sector regulators, such as the Central Bank of Nigeria for fintech, still apply their own licensing rules
- Data protection obligations under the Nigeria Data Protection Act 2023 still apply; see data protection laws compared
Startup acts elsewhere in Africa
Tunisia passed one of the continent’s first startup acts in 2018, and Senegal followed in 2020. Several other countries have adopted or are developing similar laws. They generally share the same goals: defining startups, offering incentives and simplifying engagement with government. Our tech policy guide tracks the wider regulatory picture.
Planning your startup journey? Start with How to Start a Tech Startup in Africa.
