Lagos State to offer tax incentives to startups through Innovation Bill
The Lagos State Government has said it will offer tax incentives and other benefits to startups operating in the State through its Innovation Bill, a key legislative initiative aimed at accelerating the growth of startups and improving the ease of doing business in the state.
This was revealed by Tunbosun Alake, Lagos State Commissioner for Innovation, Science, and Technology, in an interview with Nairametrics on the sidelines of the just concluded GITEX Global 2024 in Dubai.
Alake explained that the Innovation Bill, which would soon be passed into law, is designed to address challenges faced by startups, particularly in areas such as registration, incorporation, and access to patents.
“The Innovation Bill will help drive the development of startups faster in Lagos State. It will provide startups with tax benefits, streamline the process for accessing patents, and make it easier for universities to engage in research and development,” he said.
Ease of doing business
While emphasizing that the bill would simplify the licensing of new technology, the Commissioner said it would also enable young businesses to incorporate innovations more efficiently into their portfolios.
- The Lagos State government hopes to create a fertile ground for tech startups to thrive and expand by fostering a more conducive environment for innovation.
- In addition to the Innovation Bill, Alake said Lagos is also working on an Ease of Doing Business Policy through the Ministry of Commerce, Trade, and Industry.
- Alake highlighted that this policy will help entrepreneurs with incorporation, registration, and tax benefits, while also providing access to government procurement opportunities.
“Although incorporation and registration are federal matters, Lagos can help facilitate the process. The goal is to make it easier for businesses, especially startups, to get off the ground and access key resources, including procurement opportunities from the government,” he said.
Lagos as a hub for startups
When asked about why Lagos has become a preferred destination for startups, Alake pointed to the state’s large population and business-friendly environment.
“Lagos State’s size and population create a captive market, which attracts a lot of companies. More importantly, Lagos is open to everyone. You don’t have to be from Lagos to set up a business here,” he said.
- The Commissioner explained that Lagos has taken deliberate steps to assist businesses in underserved areas.
- He cited an example of an artificial intelligence and robotics company that the state actively supported, saying, “We have a specific policy of helping businesses in areas we believe need development, like AI and robotics.”
- Lagos has also been instrumental in connecting businesses with government agencies. Alake noted that the state has a dedicated team that facilitates partnerships between companies and relevant government bodies, particularly in sectors like transportation.
“We make these connections to ensure that businesses can serve the needs of government agencies and, in turn, drive economic growth,” he said.
With the private sector accounting for 80% of Lagos’ GDP, Alake reiterated the state’s commitment to servicing this sector, particularly in the technology ecosystem.
What you should know
- Meanwhile, the State is hoping to attract more investments in startups as Nigeria prepares to host the world through GITEX Nigeria, a country-focused edition of the GITEX Globa organized by the Dubai World Trade Centre (DWTC).
- The event to be hosted by the Nigerian government in Lagos and Abuja is scheduled to be held September 1 to 4, 2025.
- Pitching to investors at the GITEX Global earlier this week, Alake declared that the tech startup ecosystem in the State is now worth over $9 billion.
- Describing Lagos as the largest startup ecosystem in Africa, the Commissioner said the State currently houses over 2,000 technology startups that are contributing to the vibrant business landscape.
