By Mary onyia
Stakeholders in Nigeria’s technology and innovation ecosystem have called for the implementation of tax incentives under the Nigeria Startup Act, saying the measures are critical to attracting investment, supporting innovation and driving economic growth.
The stakeholders spoke at the startup technical training organised by the Franco-Nigeria Chamber of Commerce and Industry (FNCCI) in partnership with French Tech and Duplo in Lagos.
Speaking on the issue, Senior Associate at ALEX, Jibrin Dasun, highlighted the importance of fiscal policies designed to reduce the burden on emerging businesses and encourage long-term investment in the digital economy.
According to him, the Nigeria Startup Act 2025 provides a range of incentives for “labelled startups”, including tax holidays, investment tax credits, capital gains tax exemptions and research and development deductions aimed at strengthening the country’s innovation ecosystem.
The act allows qualified startups operating in pioneer sectors to enjoy tax reliefs for an initial three-year period, renewable for an additional two years, subject to approval by the Nigerian Investment Promotion Commission (NIPC).
Dasun noted that the incentives were introduced to position Nigeria as a leading hub for digital entrepreneurship in Africa by lowering operational costs for startups and making the sector more attractive to local and foreign investors.
He explained that investors in labelled startups may also benefit from tax credits of up to 30 per cent on qualifying investments, while capital gains from startup investments held for at least two years could be exempted from taxation.
Manager, Finance and Tax Consultant, KPMG Africa, Nicholas Etsu, said the incentives also extend to investors, including angel investors, venture capital firms, accelerators and incubators.
He said the incentives also extend to investors, including angel investors, venture capital firms, accelerators and incubators.
“The policy allows qualifying investors to access tax credits and exemptions on gains derived from investments in labelled startups.
Other benefits under the Act include deductions for research and development expenses incurred in Nigeria, reduced withholding tax rates for certain foreign technical service providers, and exemptions from Industrial Training Fund contributions for startups that provide in-house staff training.
Industry experts, however, stressed that beyond the provisions of the law, effective implementation remains key to unlocking the full benefits of the incentives.
They argued that many startups still face challenges accessing the incentives due to regulatory bottlenecks, limited awareness and compliance hurdles associated with obtaining startup labelling and other approvals.
Analysts believe that with improved implementation, Nigeria’s startup ecosystem could witness increased investment inflows, greater job creation and accelerated innovation across sectors including fintech, agritech, healthtech and digital services.
Nigeria remains one of Africa’s leading startup destinations, with technology ventures attracting significant funding over the past decade.