The Nigerian government has granted tax breaks for startups, a move that will help the country’s digital and entrepreneurial sectors grow.
Startups will experience favorable growth as a result of the approval, which will create jobs and diversify the economy.
Femi Adeluyi, the Minister of Central and Digital Economy’s technical assistant, revealed the information in a statement on Friday.
The permission came when Isa Pantami, Nigeria’s Communications Minister, presented a note to the Federal Executive Council on Wednesday, according to the report.
“The permission will allow the implementation of policies to foster and support the development and growth of more Innovation-Driven Enterprises (IDEs),” according to the statement.
This would also contribute in the development of innovative solutions to social problems, as well as the rapid growth and diversification of the Nigerian economy, according to the government’s National Digital Economy Policy and Strategy (NDEPS) for a Digital Nigeria.
Nigeria’s startup ecosystem has made significant growth, receiving almost 35% of the $4 billion raised by African businesses. It has resulted in job creation.
According to Jobberman’s 2020 Digital Sector Report, Jumia, an indigenous e-commerce startup, employs over 3,000 people directly.
According to the report, Nigeria’s digital economy will generate roughly 1.3 million tech-enabled jobs across industries by 2025.
The government has directed that tax relief for startups be given priority by all ministries, organizations, and departments. The Nigerian Investment Promotion Commission and the Federal Ministry of Finance, Budget and National Planning are the MDAs (NIPC).
The Nigerian Copyright Commission, Trademarks Registry, and Patents and Designs Registry are among the others. Within two months, the agency will collaborate with the National Information Technology Development Agency (NITDA) on a technology and innovation intellectual property framework.
It was suggested that the sector be given incentives such as the Pioneer Status Incentive (PSI) Scheme.