Let’s set the scene: you’re a fresh-faced entrepreneur with a killer idea. You’ve developed an app that connects coffee lovers with obscure coffee shops. You’ve got investors, a team, and a ping pong table in your office for “team building” (which, let’s be honest, is just an excuse to avoid real work). Everything is set to take off.
Or you’re a Nigerian entrepreneur with a groundbreaking idea. You’ve developed an app that connects tailors with clients looking for custom designs. You’ve got a slick interface, a handful of local tailors on board, and some interested customers. Things are going well, but then you attend one investment event and hear that ominous phrase—policy frameworks—and immediately, your energy deflates faster than the last NEPA power outage. “Policy? What’s that got to do with my app?” you wonder, as you sip your cold Zobo and eat your small but mighty small chops, blissfully ignoring what’s lurking in the regulatory weeds.
Spoiler alert: you probably shouldn’t.
Policy: Not Just For Bureaucrats (Or Politicians)
You see, as a founder, you’re laser-focused on growth, scaling, and possibly becoming the next Innoson of tech. What you’re probably not focused on is how government policies could either turbocharge your business or grind it to a screeching halt. Think of it this way: government policies are the unseen hand either opening doors or locking you out entirely. You might not care about them, but trust me, they care about you.
In short: policy is like gravity. You don’t always see it, but you sure as heck feel it when you try to jump without knowing it’s there.
Take, for instance, the National Digital Economy Policy (the nerdy cousin to the Silicon Valley scene), which aims to drive innovation across Nigeria. Sounds promising, right? Except, it’s jam-packed with clauses, licensing requirements, and “digital infrastructure” goals that don’t quite line up with your dream of going live next week.
Then there’s CAMA 2020—the Companies and Allied Matters Act. Sounds dry, I know, but this one’s actually relevant to you. CAMA’s new provisions make it easier for startups to register, organize, and access certain tax exemptions, but it also sets up legal hoops you’ve got to jump through to avoid running into the dreaded business closure memo from CAC. What does this all mean for you? A legal framework that’s both your friend and foe—if you know how to navigate it.
Innovation-Friendly, Or Just A Bureaucratic Headache?
Let’s talk about innovation policies—those sleek-sounding initiatives that government officials proudly announce at conferences. You’d think these policies would be designed to help you unleash your inner innovator, right? Well, they can, but they also come with a bunch of hurdles.
For instance, Nigeria’s Startup Act promises to turn the country into Africa’s next silicon valley and Premium innovation hub. The act provides support for tech startups through tax incentives, loans, and training programs. That’s the good news. The bad news? Implementation! Yes you said it right. Navigating the bureaucracy to collaborate and implement the act is like trying to find a signal during the Harmattan season—tedious and inconsistent. By the time you figure out which ministry or department you’re supposed to speak to ,you could’ve launched a whole new product.
But policy isn’t just about figuring out how to unlock the potential of those programs or initiatives; it’s about understanding the restrictions they place on you. For instance, in fintech, the CBN’s regulatory stance on mobile money and blockchain is often unpredictable. One day, you’re the hero of the e-commerce revolution, the next day, you’re smacked with a circular banning your entire business model.
Protection or Problem? Intellectual Property (IP) Laws
As a Nigerian founder, your ideas are your currency. Whether you’re building the next Jumia or a new fintech app, protecting your intellectual property is key. Nigeria has intellectual property laws, but do you know how well they actually protect your business? For instance, what happens when someone in another country replicates your app, slaps on a different name, and starts undercutting your market share?
Nigeria’s IP laws are there, but enforcement is shaky. And here’s where you start sweating over whether you can go toe-to-toe with international giants with deep pockets. Sure, you can file patents and trademarks with the Nigerian Copyright Commission, but without consistent enforcement, your “big idea” could become a public good faster than you can say “trademark infringement.”
Taxes: A Game of Policy Roulette
Let’s not even get started on taxes. No, seriously, let’s—because you have no choice but to deal with them. Tax policies in Nigeria are a minefield for startups. While there’s the pioneer status tax relief, which offers you up to 5 years of no taxes if your startup falls into a certain category (good news!), there’s also the looming threat of multiple taxation across federal, state, and local levels.
One day you’re paying the usual corporate tax to the FIRS, the next day your local government sends you a bill for an entirely different “innovation tax” that you’ve never heard of. And let’s not forget VAT (Value-Added Tax)—which affects everything from your app sales to that Zobo delivery business you’ve been dreaming about on the side. Knowing which tax applies when is more confusing than the plot of Nollywood’s latest blockbuster.
The Nigerian Founder’s Secret Weapon: Policy Hacking
So why should you care about all these policies? Because they’re not just nuisances to dodge—they’re tools to be used. Let’s look at some of the game-changing Nigerian founders who understood this. Flutterwave? They didn’t just launch a fintech platform; they built relationships with regulators, navigated the policy landscape, and used that knowledge to expand across multiple markets.
If you know how to “hack” the system, policy becomes less of an obstacle and more of a competitive edge. Need to scale? Familiarize yourself with the Digital Identity Act so you can access government-backed digital services that let you onboard users faster. Want to raise money? The Nigeria Investment Promotion Commission (NIPC) has incentives designed to attract foreign investment—if you know how to qualify for them.
The Danger of Ignoring Policy: From Founder to Fugitive?
Here’s the thing: policies might be tedious, but ignoring them is like playing with fire—except the fire is CBN’s regulations or the Nigerian Communications Commission (NCC) shutting down your app for some obscure compliance issue. Not understanding data protection regulations? Enjoy that fine, because NDPR (Nigeria Data Protection Regulation) violations aren’t going away.
Let’s not even talk about anti-money laundering laws. If you’re a fintech founder processing transactions, you need to know the CBN’s guidelines like the back of your hand. If not, you could find yourself doing the startup walk of shame in front of the Economic and Financial Crimes Commission (EFCC). Not a great look for that funding round you were planning.
Conclusion: Get Cozy With Policy—Or Get Left Behind
As a Nigerian founder, policy is not your enemy. In fact, it’s your unwanted ally. Sure, it might slow you down with paperwork, regulations, and compliance checks, but it’s also the thing that makes or breaks businesses. The good news? The Nigerian government wants entrepreneurs to thrive—it just has a complicated way of showing it. The bad news? You’ve got to figure out which policies help you thrive and which ones keep you tangled in regulatory limbo.
So, before you dismiss policy as “someone else’s problem,” remember: policy is the ping pong table of Nigerian entrepreneurship. You don’t need to be a master, but you better know how to play.