Policy Rambling – Needed Change for Growth in Nigeria’s Technology Startups

I have had to spend some time thinking about the steep path most technology startups in Nigeria are faced with.

Base don this conjecture I believe the government has a role to play in at least one aspect. One way I think would be of immense help would come in form of well structured tax-breaks for new technology startups.

A tax break for technology and software companies for the first three years of operation could be structured so that only those companied that meet a set of requirements would be allowed to participate.

We can include the conditions below, even as I must say that this in not an exhaustive set of requirements.

Companies that would benefit from a tax-break:

  1. Must have a staff strength of not more than 4 employees.
  2. Must be in the business of technology innovation or software development.
  3. Must be willing and capable of providing verifiable information about progress and business activities.
  4. Must provide bank account statements as evidence in cases where business has not commenced.

This is just one of my quick ramblings about the technology startup landscape in Nigeria and Africa.

See this report by the Omidyar Network on accelerating entrepreneurship in Africa results from a detailed survey.

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