Feature/OPED
Improving the Startup Environment with Nigerian Startup Act

By Lere Ojedokun
On October 19, 2022, the Nigerian technology and innovation space, and in particular the tech-enabled startup environment, received a major boost when President Muhammadu Buhari signed the Nigeria Startup Bill (NSB) into law.
With the presidential assent, the Nigeria Startup Act (NSA 2022) came into effect, the principal objective of which is to further grow the country’s ICT sector which, according to the Minister of Communications and Digital Economy, Prof. Isa Pantami, contributes 40 per cent to the Gross Domestic Product (GDP) annually, with 18.42 per cent already recorded in 2022 alone.
He added that the new act – a joint initiative by Nigeria’s tech startup ecosystem and the Presidency, was aimed at harnessing the potential of Nigeria’s digital economy through co-created regulations and to emplace well-laid laws and regulations that work for all stakeholders in the tech ecosystem.
Pantami also said the act provides the legal and strategic framework for innovators to make their contributions to the country, stating that out of the seven unicorns in Africa, five are from Nigeria and that the market value of each unicorn is worth $1 billion.
In a nutshell, the intention of the Nigerian Startup Act 2022 includes recognition of legally incorporated tech startups 10 years downward, whose activities support the creation and incubation of innovations and tech solutions. It further seeks to provide an enabling environment for the establishment, development, and operation of startups; provide for the development and growth of technology-related talent; and position Nigeria’s startup ecosystem as the leading digital technology centre in Africa.
To achieve the intended objectives, the act makes provisions for the establishment of a startup seed fund; tax incentives for startup businesses, new employees and angel investors, accelerators, and venture capitalists; training and capacity building support; as well as facilitating smooth working relationships between startups and relevant government agencies.
Startups under the Nigerian Startup Act 2022 are defined as any company in existence for not more than 10 years, with its objectives being the creation, innovation, production, development, or adoption of a unique digital technology innovative product, service, or process. This definition connotes that the Act will apply to tech-enabled startups, that is, companies like Alerzo, Kuda, Bamboo, etc that leverage innovations and technological advancements to solve operational issues or improve customer experience.
The new act, indeed, is a huge step towards addressing the yearnings of players and stakeholders for a more enabling operating environment. This is more so because, despite the huge socio-economic potential and benefits that digital innovations, products and services can offer Nigeria’s economic recovery and growth, the space is fraught with certain challenges.
For instance, McKinsey & Company in a report, Harnessing Nigeria’s Fintech Potential (September 2020), stated that Nigeria is home to over 200 fintech standalone companies offering fintech solutions, plus fintech solutions offered by banks and mobile network operators. The report added that the Nigerian fintechs raised more than $600 million in funding between 2014 and 2019.
Quartz Africa, however, lamented the high failure rate of Nigerian startups. It said a 61 per cent startup failure rate was recorded from 2010-2018 due to various factors, including poor infrastructure such as roads, inefficient electric power, inconsistent government policies, regulatory bottlenecks, over-saturation of startups in select locations, dearth of talent, high operating cost, funding challenges, etcetera.
It is gratifying also that tech-backed B2C and B2B e-commerce startups like Alerzo (AlerzoShop), TradeDepot, Omnibiz, Njalo etcetera are also among the principal beneficiaries of the new act. As an important driver of the digital economy, they also face similar challenges of policy inconsistency, lack of access to funding, exclusion from official foreign exchange window, high lending rate by commercial banks, high operating cost, poor supporting infrastructure, overlap in regulation by government agencies, multiple taxations and insecurity, amongst others.
The new act offers the much-sought political will towards addressing the challenges of tech startups. It is also an acknowledgement of the significance of tech-enabled startup businesses as enablers of national socio-economic growth, which e-commerce platforms are a part of.
Despite the challenges in the emerging B2B e-commerce ecosystem, the resilience of the segment as a significant contributor to the manufacturing and distribution value chain is never in doubt. Over the past years, operators have consistently invested in ICT infrastructure and human capital to impact the entire value chain – manufacturers, distributors and retailers – by enabling Factory-to-Retail distribution for consumer goods companies.
Nigeria’s informal retail market is estimated to worth $100 billion, yet faces peculiar challenges, including limited inventory, lack of access to finance for expansion, unregulated and clustered market, distance to market or supply source and high transportation cost, all of which increase the cost of operation.
Alerzo is prominent among the tech-enabled e-commerce platforms that are empowering informal retailers in the suburban and rural areas with the faster distribution of consumer goods using first-party relationship platforms, enabling manufacturers and top-tier primary suppliers to clear their inventory faster while it absorbs the burden of last-mile supply and delivery to the retailers. The new Act could enable it to do more when the cost of doing business is low.
During COVID-19 and post-pandemic, Alerzo helped to bridge the demand-supply shortfalls by leveraging its ecosystem of digital solutions and logistics platforms to empower informal retailers to access a wide assortment of consumer products with ease and faster from FMCG companies such as Flour Mills, Unilever, Nestlé, Procter & Gamble, PZ Cussons and Dangote at zero delivery cost to the retailers.
More angel investors, accelerators and venture capitalists partnering with B2B e-commerce platforms like Alerzo and others in critical areas such as logistics and warehousing services would mean more goods will pass through the supply chains faster to the consumers. Businesses will reduce their operating cost and increase profitability; more jobs will be created, economic wealth will be distributed to more people; quality of life will improve, while the economy will be significantly impacted.
The act, by offering incentives, provides a buffer for startup businesses like Alerzo to achieve stability or withstand macroeconomic headwinds. Incentives like pioneer status for tech businesses aged zero to 10 years in critical industries like technology and agriculture and possible tax holiday, up to between three and five years, are highly commendable.
Also, allowing startups to employ entry-level talent with no more than three years of post-graduation experience and offering income tax relief of up to five per cent of profit generated and Personal Income Tax relief of 35 per cent for two years for such employees can help them attract the right talents. Enabling angel investors, accelerators, and venture capitalists to enjoy tax credits, up to 30 per cent of their investment in a startup, can attract more investors into the segment.
The future of tech startups in Nigeria is bright, no doubt. McKinsey & Company, in the report cited earlier, revealed that Nigeria’s fintech ecosystem attracted $122 million, representing 25 per cent of $491.6 million total funds raised by African tech startups in 2019 alone, coming second to Kenya, which attracted $149 million. It noted further that Nigerian startups retained $1.37 billion of Africa’s $4 billion funding in 2021, showing that Nigeria has the highest volume of startups in Africa. Quartz Africa further affirmed Nigeria as hosting the most startups in
Thus, Nigeria Startup Act 2022 can be a stimulus to accelerate the growth of Nigeria’s tech startups to an enviable height in the not-too-far foreseeable future.
Ojedokun, a policy analyst and development advocate, contributes this piece from Lagos
Feature/OPED
Humans + Machines: Building the Workforce of the Future

By Ursula Fear
Is AI coming for your job, or is it already working beside you? As its use becomes more routine, artificial intelligence is looking less like a threat and more like a teammate: answering queries, making decisions, chasing leads, processing invoices, and drafting content around the clock.
This new class of digital labour is changing how teams function, how targets are met, and how people spend their time at work. From now on, almost every job, team, and company will involve AI agents – systems that can analyse vast datasets, apply human-like reasoning, and act independently. Their presence is set to influence workflows, increase productivity, support innovation, and redefine roles across the organisation.
Rather than replacing people, AI is tilting the workload. Salesforce research shows that 23% of HR teams plan to redeploy employees into roles that make better use of their uniquely human strengths. At the same time, agentic AI adoption is projected to surge by 327% over the next two years (from roughly 15% adoption today to about 64% by 2027).
This shift is tied to anticipated productivity gains of 30% per employee and labour cost reductions of 19%, equating to about $11,000 in savings per employee annually, based on Organisation for Economic Co-operation and Development (OECD) wage averages. Rather than replacing people, organisations are preparing to reskill and redeploy workers, enabling humans to focus on higher-value roles that emphasise creativity, strategy, and interpersonal skills.
A recent Gartner poll further found that 95% of customer service teams intend to retain human agents to help define and guide the role of AI, reinforcing the value of a “digital first, not digital only” approach. Gartner further says that by 2027, half of the organisations that planned to significantly reduce their customer service workforce will abandon those plans, highlighting the limits of going fully “agentless”.
For African countries, the rise of digital labour presents an opportunity to build modern, inclusive workforces without being bound by outdated development models. But realising this potential depends on sustained investment in skills training, digital infrastructure, and equitable access to AI tools.
Train for tomorrow
Africa has the world’s youngest population. It’s bursting with entrepreneurial energy. But many young people still don’t have access to the tools and skills that will define the next era of work. If the continent wants to lead in the digital labour revolution, it should act now by investing in digital infrastructure, prioritising skills development, and forging partnerships that make future-focused training widely accessible.
Yes, the skills gap is real and broadband internet is still a luxury in many communities. But on the upside, AI training doesn’t require a university degree. Much of it is free, online, and accessible to anyone with a smartphone and a curious mind.
That opens the door to governments, educators, businesses, and civil society to step up to update school curricula, expand digital infrastructure, and support public-private training partnerships. All of this matters: not just for economic growth, but for social inclusion, too.
If these foundations are put in place, African countries could not only meet the needs of their growing population but also leapfrog outdated development models.
From entry-level to in-demand
When AI begins to handle the simpler tasks, it’s easy to worry about what’s left for those starting out. Entry-level jobs aren’t disappearing though. Instead of doing routine work, newcomers will now need to build skills in oversight, collaboration, and using AI tools effectively from day one. The ladder still exists; it just starts in a different place.
This will require a different kind of training – not just technical know-how, but in soft skills like empathy, adaptability, ethical judgement, and communication, which are all human traits that help teams thrive.
AI’s presence in the workplace may be concerning, with reports of job cuts due to its adoption (here), but all is not as it seems.
Research suggests a more balanced perspective: One of the most comprehensive studies, from the National Bureau of Economic Research, tracked 25,000 workers across 7,000 Danish firms using AI chatbots. It found no significant changes to jobs, wages, or working hours. Productivity rose by around 3%, without leading to layoffs.
The St. Louis Fed found something similar. Based on large-scale surveys in the US, researchers reported one in four workers now use generative AI weekly, saving on average just over two hours a week. Spread across the entire labour market, that translated into a 1.1% productivity gain. Crucially, there was no sign this efficiency came at the cost of jobs.
Adding to this, a 2024 study by Mäkelä and Stephany analysed over 12 million US job listings and revealed that demand is surging for “AI-complementary” skills such as resilience, teamwork, digital literacy, and analytical thinking. These are the very human capabilities that help people work effectively with AI. The study found AI-focused roles are nearly twice as likely to list these skills, and they command wage premiums of 5–10%. Even more telling: the positive impact of these complementary skills outweighs the substitution effects of AI by up to 70%.
These findings all suggest that AI isn’t replacing workers; it’s helping them work smarter and more efficiently. To thrive in this blended future, we need to prepare today, by building the right skills, expanding access, and embracing AI not as a threat, but as a partner in progress.
Because the future of work won’t be entirely human, nor entirely automated – it will be a blend of both.
Ursula Fear is the Senior Talent Programme Manager at Salesforce
Feature/OPED
South West Appointment and Projects Favouritism: Fact or Fiction?

By Abba Dukawa
“It is utterly insensitive for Northern Nigeria’s elite to accuse President Tinubu’s administration of favoring the South-West geopolitical zone. Alleging favoritism towards the South-West, demonstrate a striking lack of sensitivity.
Where were these critics when former President Buhari’s administration faced controversy over alleged favoritism towards the North in appointments? Why they not accused PMB of violating the Federal Character Principle, which ensures balanced representation across regions.
Let’s set the record straight: According to BusinessDay, 81 out of 100 appointees since 2015 were Northerners, including key positions like Chief of Army Staff (Borno, North-East), Chief of Air Staff (North-East), National Security Adviser (North-East), Accountant General (Kano, North-West), and Chairman of the Federal Character Commission (North-East).
SGF (North East) Aviation (North West) AGF (North West) GMD NNPC(North East ) Minister of finance( North West). According to another reports, appointments by geopolitical zone are as follows: North West (51), North Central (47), North East (45), South East (41), South West (45), and South South (45). These figures are currently inconsequential.
Regarding the Northern elite’s claims about imbalance in President Tinubu’s appointments, the issue appears overstated. Instead, the more pressing question is whether they’re diverting attention from the North’s own developmental shortcomings. The region’s progress warrants scrutiny.”
The previous administration, despite having two consecutive terms, left key infrastructure projects unfinished in the north. Notable examples include the Kano-Kaduna-Abuja highway, a crucial North-South link,.
Kano-Maiduguri road project, vital for North West-North East connectivity. Moreover, Aminu Kano International Airport, a major Northern hub, significantly declined under the Northern Minister of Aviation’s supervision, rendering it nearly defunct.
The claim that President Tinubu’s administration favors the South-West in appointments appears baseless, particularly given the North’s experience under previous administrations.
Notably, Tinubu’s administration has appointed 71 individuals from the North and 63 from the South. A breakdown of Southern appointees reveals: South-West (26), South-South (21), and South-East (16). I’m still unclear about the issue – it seems like fiction.
For those overnight champions of Northern interests, have forgotten the unfinished infrastructure projects started by the previous regime, such as the Abuja-Kaduna-kano (AKK) gas project, Mambilla Power Project.
What about the Baro Port project was commissioned by President Muhammadu Buhari on January 19, 2019: Despite its commissioning, the project has remained idle due to a lack of supporting infrastructure, such as access roads and rail connectivity.
The Kano, Daura, and Maradi rail projects, though unfinished under previous administrations, are being continued by the current government. Numerous others projects across the North, left incomplete despite 8 years in power?
President Bola Tinubu’s administration has approved several major projects in Northern Nigeria. Some notable ones include Kolmani Integrated Development Project, continuation of Abuja-Kaduna-Kano Gas Pipeline, Sokoto-Badagry Highway, Kaduna-Kano Rail Line, Kano-Maiduguri Dual Carriageway.
Agriculture Value Chain Initiative to boost agricultural productivity and economic growth. ACReSAL Program a World Bank-funded project aimed at restoring one million hectares of degraded land in the North.Healthcare Projects
Federal Medical Centers*: upgrades and expansions are underway at major facilities, including Ahmadu Bello University Teaching Hospital, Zaria, and Federal Medical Centre, Nguru.
A multimillion dollars oil exploration project located between Bauchi and Gombe states, expected to boost oil production and contribute to national economic growth. The project involves drilling activities, construction of a gas pipeline from Ajaokuta to Kano, and establishment of a Bauchi Oil and Gas Academy.
All these projects demonstrate President Tinubu’s commitment to improving infrastructure, energy, healthcare, and economic development in Northern Nigeria.
Despite numerous appointments and projects in Northern Nigeria, some self-proclaimed regional advocates remain driven by self-interest, claiming underrepresentation. Meanwhile, the appointments have sparked debate, with proponents citing merit and critics alleging their fuel ethnic and regional tensions.”
Dukawa write it from Abuja can be reached at abbahydukawa@gmail.com
Feature/OPED
Local Supply Chain Support – From Seed to Sip

By Abiola Laseinde
From the soil of Northern Nigeria from where grains are sourced, to the bubbling breweries in the South that bottle joy, and finally to your glass, beer is more than just a beverage. It is a cultural artefact, a celebration of local entrepreneurship, and it is a sustainable force of development. As the world observes International Beer Day, what better time to spotlight the engine room of this golden industry: Nigeria’s local beer supply chain
The Nigerian beer industry is one of the most dynamic in Africa, and caters to over 200 million consumers. Yet, beyond the stream of iconic labels and festival commercials, lives a vibrant ecosystem that adds value. Farmers, transportation engineers, marketers, bar owners, recyclers, and innovators, are reliant on beer production and delivery for gainful employment.
Sourcing fresh grains from Nigerian farmers makes beer companies contributors to rural economic development, supporters of agronomic innovation and diversification, and a means of reducing import dependency. Local sourcing alleviates food security and supports the building blocks of industrial self-reliance. Opening a bottle of beer in essence, is a silent salute to the thousands of farmers working across the rich, fertile lands of Nigeria
Beer binds cultures together, whether being toasted at a naming ceremony in Abeokuta or downed at the end of a long day in Jos, beer has become a nexus of community across tribes, religions, and class. Beer unifies people, encourages conversations, and often plays a backseat role in defining moments in one’s life.
Beyond that, beer tells an indigenous Nigerian story. From the packaging that pays tribute to our heritage, to advertisements that mirror our humor, odds, and wins, beer serves as a lens into our identity. In many ways, when people engage with beer, they are not merely consuming it; they are experiencing it.
This layered value chain is also a training ground. Often, breweries will up skill employees with technical skills training, workplace safety protocols, and environmental sustainability, which means they are producing a skilled national workforce. It is an ecosystem where blue-collar and white-collar roles intersect, providing a balanced socio-economic impact.
Beer production today is being managed with the environment in mind. Increasingly Nigerian beer companies are looking to use renewable energy; treat wastewater; and implement circular packaging. Grains can be repurposed to animal feed, glass bottles recycled, and even introducing new technologies such as lighter-weight cans to mitigate carbon emissions. These actions are more than just corporate responsibility; they are commitments to Nigeria’s future.
As we raise our glasses high this International Beer Day, we must recognize the leg of the journey from seed to sip. Beer is more than a drink; it is an industry that provides families with food and shelter, builds communities, shapes culture, and now, takes into account its footprint on the planet. The local supply chain is not only strong but also strategic!
In celebrating and supporting this industry, we do not just celebrate a product, we celebrate potential, resilience, and the Nigerian spirit of enterprise.
Mrs Abiola Laseinde is the Executive Director of the Beer Sectoral Group (BSG)
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