Introduction
Nigeria’s startup ecosystem isn’t short on ambition—but ambition alone doesn’t pay salaries, close funding rounds, or turn prototypes into national infrastructure. What Nigerian startups need now is a policy that doesn’t just promise, but delivers.
Nigeria’s startups raised over $1.2B in 2022 (Partech Africa Tech VC Report 2022) —yet 60% still fail before year 5. The difference between survival and collapse? Policy that bridges the gap between innovation and infrastructure. That’s the Nigeria Startup Act’s (NSA) mandate—and in 2025, it’s finally shifting gears.
Enter the Nigeria Startup Act (NSA)—a game-changing policy designed to provide structured support for tech-enabled startups. Signed into law in 2022, the Act is finally gaining traction as full implementation unfolds into 2025.
This guide breaks down key Nigeria Startup Act benefits for eligible startups, including tax relief, seed funding, and direct government partnerships. We spotlight 10 real Nigerian startups that check all the boxes for eligibility and are perfectly positioned to benefit from the Act.
New to the NSA? Start with our guide: Nigeria Startup Act: Key Benefits, Funding & How to Register
What Are the Key Nigeria Startup Act Benefits?
Let’s break down the core benefits of the NSA:
✨ Tax Incentives Under the NSA
- Up to 5 years of tax holidays for labelled startups
- Full deductions for qualifying R&D expenses
- Reduced withholding tax for foreign technical services
💰 How the ₦10 Billion Seed Fund Works
- Managed by the Nigeria Sovereign Investment Authority (NSIA)
- Offers grants and low-interest loans (as low as 5%) to startups
- Prioritizes early-stage, innovation-driven ventures
🕹️ Regulatory & Market Access
- Access to regulatory sandboxes (especially for fintech and healthtech)
- Opportunities to participate in public procurement and government contracts
- Export support and IP protection assistance
For a deeper dive into why this matters for founders and investors, read: The Essential Nigeria Startup Act for Entrepreneurs and Investors
🧩 Bonus insight: Labelled startups may also gain priority access to federal innovation procurement programs, unlocking exclusive government partnerships and pilot opportunities.
Who Qualifies for the Nigeria Startup Label?
📝 Download: Nigeria Startup Label Eligibility Checklist by PlanetWeb
To get labelled and unlock the NSA’s benefits, your startup must:
- Be a tech-enabled company incorporated in Nigeria
- Be less than 10 years old (based on CAC incorporation date)
- Be at least 51% Nigerian-owned
- Have a focus on innovation, software/IP development, or digital tools
Pro tip: Ensure your IP is registered, your books are clean, and your CAC paperwork is in order.
📌 Note: Startups that are not majority Nigerian-owned may still benefit from the Nigeria Startup Act if they demonstrate substantial value addition—such as local hiring, IP registration, or domestic investment.
Real-World Startups Positioned to Benefit from the Nigeria Startup Act
Below are 10 startups—active as of 2024—that not only align with the NSA’s eligibility criteria but also show strong traction and potential for impact.
1. 🏥 Helium Health (HealthTech)
- Sector Focus: Healthtech, EMR & Telemedicine
- Traction: Active across West Africa; partnered with Kenya’s Avenue Healthcare
- NSA Fit: Nigerian-founded, owns proprietary software
- Key NSA Benefit: R&D grants for AI diagnostics, tax holidays
2. 🎓 uLesson (EdTech)
- Sector Focus: EdTech & AR/VR Learning
- Traction: Expanded to Ghana and Kenya; launched uLesson Class
- NSA Fit: Over 60% Nigerian-owned with proprietary content platform
- Key NSA Benefit: Access to seed fund for immersive learning tech
3. 📡 Termii (Communication Tech)
- Sector Focus: B2B Communication APIs
- Traction: $1.5M secured; serves Kuda Bank & FairMoney
- NSA Fit: Nigerian-owned API platform with tech IP
- Key NSA Benefit: Tax incentives for expanding communication infrastructure
4. 🚛 Kobo360 (Logistics Tech)
- Sector Focus: Freight Logistics & Supply Chain
- Traction: Partnered with Dangote Group for cement distribution
- NSA Fit: 51% Nigerian-owned; digitizing logistics
- Key NSA Benefit: Eligible for government procurement
- Note: Scaled down post-2021 but remains NSA-eligible
5. 📉 Curacel (InsurTech)
- Sector Focus: Insurance Automation & AI
- Traction: Raised $3M; active in Egypt and Kenya
- NSA Fit: Proprietary AI tools for insurers
- Key NSA Benefit: Access to regulatory sandbox
6. 🌾 Thrive Agric (AgriTech)
- Sector Focus: Crowdfunded Farming & IoT
- Traction: Serves 50,000+ farmers; IoT soil sensors launched
- NSA Fit: 100% Nigerian-owned; strong rural presence
- Key NSA Benefit: Grants for expanding sensor-based agri-data tools
- Risk Note: Restructured after 2020 liquidity issues
7. ☀️ Reeddi (Climate Tech)
- Sector Focus: Clean Energy & Solar Hardware
- Traction: Won $500k Earthshot Prize; deployed in 10 states
- NSA Fit: Patented IP and local hardware deployment
- Key NSA Benefit: Green innovation funding & IP protection
8. 🛒 TradeDepot (Retail Tech)
- Sector Focus: FMCG Retail Distribution
- Traction: $150M+ in processed annual orders
- NSA Fit: Nigerian-led; digitizing informal retail supply chains
- Key NSA Benefit: Export and supply chain expansion incentives
9. 🚖 MAX (Metro Africa Xpress) (Mobility & EVs)
- Sector Focus: Electric Vehicle Mobility
- Traction: Launched EV taxis in Lagos; raised $31M
- NSA Fit: Nigerian-founded; first to deploy EV fleet at scale
- Key NSA Benefit: Regulatory sandbox for clean mobility infrastructure
10. 🧪 Healthtracka (HealthTech)
- Sector Focus: Digital Diagnostics & At-home Lab Testing
- Traction: 10,000+ at-home tests delivered in 2023
- NSA Fit: Proprietary platform; 100% Nigerian-owned
- Key NSA Benefit: Grants to scale diagnostic access nationwide
Bonus: Early-Stage Startups to Watch
- 💸 Vella Finance (FinTech): SME payroll & finance tools; raised $1.2M in 2023
- 🧾 Chekkit (Anti-Counterfeit): Partnered with NAFDAC to track pharmaceuticals
- 📦 Fez Delivery (Logistics): Expanded to 15 Nigerian cities with micro-fulfillment
For broader insight on how the NSA compares globally, check out: Nigeria Startup Act vs Global Startup Policies: Key Insights & Lessons
Nigeria Startup Act Benefits vs Other Popular Startup Support Programs in Nigeria
| Feature | Nigeria Startup Act (NSA) | BOI Youth Entrepreneurship Support | Tony Elumelu Foundation (TEF) | YouWIN! (Legacy Program) |
|---|---|---|---|---|
| Startup Age Limit | ≤ 10 years | No strict limit | ≤ 3 years | Typically ≤ 5 years |
| Tax Incentives | ✅ Up to 5 years | ❌ Not included | ❌ Not included | ❌ Not included |
| Seed Funding | ✅ ₦10B fund (grants/loans) | ✅ Loans (interest-bearing) | ✅ $5,000 grant | ✅ Grants (up to ₦500K) |
| Funding Cap | ❌ No public cap | ✅ Based on business plan | ✅ $5,000 max | ✅ ₦500K typical max |
| Regulatory Sandbox Access | ✅ Yes (via CBN, SEC, etc.) | ❌ Not applicable | ❌ Not applicable | ❌ Not applicable |
| IP/Innovation Requirement | ✅ Required | ❌ Not emphasized | ✅ Encouraged | ❌ Not required |
| Export & Procurement Opportunities | ✅ Yes | ❌ No direct provisions | ❌ No direct provisions | ❌ No direct provisions |
Why This Matters for Nigeria’s Future
The Nigeria Startup Act isn’t just another policy document—it’s a high-stakes framework for survival. With Nigeria’s youth unemployment hovering around 18% as of 2023, the Act’s promise to create 1 million tech jobs by 2030 could be the difference between stagnation and progress.
Startups that don’t align with the NSA risk more than missing out on tax relief—they risk exclusion from over 70% of public-private partnership opportunities by 2026, including federal digital procurement, grant programs, and sandbox participation.
By connecting startup innovation to national digital goals, the Act positions Nigeria as a potential tech export powerhouse and a gateway to African digital trade.
It also aligns with Nigeria’s Digital Economy Policy and Strategy (2020–2030)—ensuring the private sector thrives alongside public sector reforms.
To understand how the Act could shape innovation over the next decade, read: The Future of Nigerian Startups: How the Startup Act Will Shape Innovation
Nigeria Startup Act Benefits in 2025: What to Watch
- The Startup Portal is expected to go fully live by late 2024
- NITDA will oversee the labeling process
- NSIA will manage the seed fund disbursement
Heads up: If your startup isn’t properly registered or lacks basic IP/legal documentation, you may face delays. Now’s the time to prepare.
Facing challenges? You’re not alone. Here’s how to navigate them: Nigeria Startup Act Challenges: Key Gaps and How to Fix Them
Final Thoughts
The NSA is a double-edged sword: It rewards compliance but excludes those who lag. Don’t miss out on Nigeria Startup Act benefits that could fast-track your growth. For startups like Helium Health and MAX, it’s a turbocharger. For others, it’s a countdown clock.
The question isn’t if you’ll adapt—it’s how fast.
Subscribe to PlanetWeb for the latest updates on:
- Labeling eligibility checklists
- Interviews with labelled startups
- NSA rollout news and how-tos
Also explore this related read: Failed Nigerian Startups: Why They Collapsed & Lessons for Future Entrepreneurs
✅ Ready to apply? Watch for updates on the Startup Portal launch at startup.gov.ng
Let’s build Nigeria’s digital future—together.
