A group of founders, entrepreneurs, and students convened at the ninth iteration of the #StartupSouth9 conference in Port Harcourt to deliberate on augmenting the role of Technology in economic development. As the conference’s convener, Uche Aniche, pointed out, start-ups would benefit from a more supportive environment if states in Nigeria adopted and domesticated the Nigeria Start-up Act. Multiple partners contributed to the event, including MainOne, Xend Finance, and Zoho. Speaking about the significance of digital transformation and the use of software to improve corporate profitability and efficiency, Onyekachi Opara of Zoho expressed her opinion.
Digital solutions have the potential to increase pricing and performance, as mentioned by MainOne’s Adebayo Adebanjo. Eden Finance became first in a hackathon competition, taking home a $1,000 top prize. Safe Launch and FLLOW secured second and third place, respectively. The CEO of Xend Finance, Ugochukwu Aronu, disclosed that the winners would be given access to an incubator program with the goal of introducing investors, expanding globally, and acquiring new clients. The National AI Strategy, which was created by the Federal Ministry of Communications, Innovation, and Digital Economy (FMCIDE), was one of the highlights of the event, according to Jane Nkechi Egerton-Idehen, MD-CEO of Nigcomsat. She emphasised the potential of satellite technology to support start-up connectivity.
The Act provides early-stage enterprises with tax advantages.
Across six distinct tracks, the conference also included investor office hours, masterclasses, panel discussions, and keynote addresses. In 2022, the Nigeria Start-up Act (NSA) was unveiled as a legislative framework intended to improve the nation’s start-up ecosystem by establishing more entrepreneur-friendly regulatory conditions. It covers important topics like financial accessibility, Tax breaks, safeguarding intellectual property, and overcoming regulatory obstacles. Encouraging cooperation between Nigerian early-stage businesses and the government to ensure that policies are created to support growth and Innovation is one of the Act’s main objectives.
Should state governments implement the Act, it might greatly diminish bureaucratic obstacles, optimise procedures, and increase start-up funding prospects. For example, the Act provides early-stage enterprises with tax advantages and streamlines regulations, which can lower operating expenses. The alliances with MainOne, Xend Finance, and Zoho are important since they are working together to improve Nigeria’s digital environment. Known for its business solutions, Zoho is assisting regional startups in using digital tools that can boost operational effectiveness and streamline procedures.
Lack of sufficient funds is an obstacle for these enterprises.
This is especially crucial in a nation where a large number of enterprises still use manual labour. Still, a number of obstacles prevent Nigerian start-ups from growing. Because state and federal policies vary and regional regulatory frameworks make it challenging for enterprises to expand nationally, policy inconsistency continues to be a significant problem. Lack of sufficient funds is another obstacle; despite the Nigeria Start-up Act’s pledges to provide access to capital, many start-ups still face difficulties obtaining seed money or scale-up capital, frequently depending on foreign investors.
Moreover, the market reach of tech-driven solutions is restricted by fragmented infrastructure, particularly in rural areas where internet connection and Digital Literacy are still low. A peek into how start-ups are utilising technology to address real-world issues was given during the #StartupSouth9 Hackathon. The winning idea, Eden Finance, aims to create a blockchain-based network that would make credit more accessible to marginalised communities. Their proposal, which won the $1,000 top prize, aims to solve the problem of financial inclusion by giving people and small businesses without access to traditional banking safe and traceable Loan options.
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Additionally, the runner-up, Safe Launch, is developing a platform for safety monitoring that employs Internet of Things sensors to stop workplace accidents in sectors including Real Estate and energy. Developing a Logistics solution to optimise delivery routes, lower fuel consumption, and boost Productivity for small-scale delivery companies is the third-place project, FLLOW. With the potential to expand beyond regional markets, these creative solutions are indicative of a larger trend of Nigerian start-ups concentrating on tech-driven applications that address important problems in industries like finance, logistics, and safety.