House Passes Tech Start-up Bill for Second Reading

Udora Orizu

The House of Representatives at plenary yesterday passed for second reading, a bill seeking to establish a regulatory framework for tech startups in Nigeria.

The executive bill titled, “a Bill for an Act to Provide for the Creation and Development of an Enabling Environment for Technology- Enabled Startup in Nigeria; and for Related Matters,” was presented for second reading by the Chief Whip of the House, Hon. Tahir Monguno (APC, Borno).

The bill specifically seeks to create National Council for Digital Innovation and Entrepreneurship with the mandate to provide the policy direction for the council, which include the creation of the Startup Support and Engagement Portal.

According to the Bill’s draft, section 31(1) proposes 35 per cent tax holiday for eligible employees of start-ups in Nigeria for a period of two years from the day of engagement.

The bill also seeks to create a startup investment seed fund to be managed by the Nigeria Sovereign Investment Authority. The fund is to provide a labelled startup with finance, provide early-stage finance for a labelled startup and provide relief to technology laboratories, accelerators, incubators and hubs.

Leading the debate on its general principles, Monguno said the bill seeks to give legal framework to the sector so that people that are going to invest will have certainty and security of their investments.

His words, “Technology innovation as well as startups to give them enabling environment for them to protect and also to protect huge investments that comes both from the public and private sectors to that sector.

“About $1.4 billion has been invested in the startup sector. And such huge amount of investment needs an environment well regulated by law. An environment that is not at the wimps and caprice of the executive arm of government. Whereby one person can wake up one day and issue directives. It brings about instability and therefore discourage investment.”

Shortly after his debate, some lawmakers faulted some of the highlights of the bill.

In his contribution, Hon. Nkem Abonta (PDP, Abia) while agreeing that the country needs an enabling environment for technological advancement, however expressed concerns over cost of governance.

He said, “Yes we need to have enabling environment, no country can grow without technology. We need to have technological growth, which includes good schools, centers.

“But on general note, my fear is the cost of governance, cost of running the place. Enabling environment is the business of the government, the bill seeks a commission that will steer this process, enabling environment appears somehow vague, not certain.

“There are lots of science institutions, if we start one, there will be multiplicity, it will be so much we become confused.”

On his part, the Deputy Minority Leader, Hon. Toby Okechukwu (PDP, Enugu) was of the view that this current government should resolve ASUU strike action and power grid collapse to provide enabling environment for people, rather than creating bills.

Okechukwu said, “My understanding of the bill is that it is talking about a process. It is describing what is to be done. I believe that the mandate of government at any level is to create an enabling environment for business for technology.

“If we get ASUU off their strike, the. It’s an enabling environment. If we get the power grid that has collapsed, it is an enabling environment. without these issues, we will just be creating enabling environment by bills without reality.”

Reacting, the Deputy Speaker Hon Idris Wase who presided over the session faulted their assertions, saying that the Bill is needed by the citizens.

Wase, thereafter put the bill to a voice vote and it was passed through second reading.