February 8, 2023

Home Business Federal Government Approves Tax Reliefs for Startups

Federal Government Approves Tax Reliefs for Startups

by Genesis Essien

CEM REPORT | To further improve the digital and entrepreneurial space, the Federal Government has through Ministry of Central and Digital Economy approved tax reliefs for startups.

The announcement was made by the technical assistant to the Minister of Central and Digital Economy, Femi Adeluyi, in a statement.

According to the statement the approval will strengthen startups through positive growth, create jobs and diversify the economy.

“The approval will enable the implementation of strategies to encourage and support the development and growth of more Innovation-Driven Enterprises (IDEs), which have the potential to create millions of additional jobs in the country,”

The statement further said the approval will also help to develop innovative solutions to societal problems, and rapidly grow, as well as diversify the Nigerian economy, in line with the National Digital Economy Policy and Strategy (NDEPS) for a Digital Nigeria.

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According to Jobberman 2020 Digital Sector Report Nigeria’s digital economy is expected to create about 1.3 million tech-enabled jobs across industries by 2025

The Federal Government has hence mandated ministries, agencies and departments to prioritise granting tax reliefs to startups. These includes the Federal Ministry of Finance, Budget and National Planning, Nigerian Investment Promotion Commission (NIPC), Federal Ministry of Finance, Budget and National Planning and the Nigerian Investment Promotion Commission (NIPC).

These agencies will work with the National Information Technology Development Agency (NITDA) in developing an intellectual property framework for the technology and innovation sector within two months. It recommended that incentives such as the Pioneer Status Incentive (PSI) Scheme should be provided to the sector.

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