The Nigerian Senate on Wednesday, 20 July, passed into law, the Nigeria Startup Bill (NSB).

This update is coming after the bill was scrutinised at the National Assembly level in March 2022 following a letter from the presidency. According to the letter from the presidency, the Nigerian Startup Bill is one that seeks to position Nigeria as the leading digital technology centre in Africa.

The bill is also one that has been alluded with progress according to leading experts in the startup ecosystem in the Western African country - with a projection of an improved enabling environment for startups in the near future.

Many startups face a host of difficulties when establishing their facilities in Nigeria -the absence of constant power supply and access to funding, etc. And while it may seem like the new startup bill may abate some of these issues, there are also a number of regulatory hurdles these startups may face. Crypto-based startups, for example, have had to innovate since the Central Bank of Nigeria reinforced a ban on crypto trading in 2021.

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Also, in 2020, some state-bound regulations placed a ban on bike-hailing startups in Nigeria. This ultimately affected mobility startups like ORide, Max.ng, and Gokada fleeing from states with this regulation. 

With the Nigerian Senate’s passing, the bill now proceeds to the House of Representatives (HoR) where it will pass through three readings. If the HoR agrees with the contents of the bill, the bill will be sent to the president for his assent, and will thus become law.