A Nigerian tech expert has described the government’s recent 70 percent slash in the cost of company registration as a welcome development.
Olusegun Aganga, Minister of Trade and Investment, approved the reduction in the fee payable to the Nigerian Investment Promotion Commission (NIPC) from NGN50,000 (US$320) to N15,000 (US$95) at the end of last week.
According to Oluseun Onigbinde, of Nigerian civic budget analysis site BudgIT, the price cut would facilitate the incorporation of more technology projects.
Speaking exclusively to HumanIPO in Lagos, he said ordinary technology projects could now be transformed into responsible businesses.
He said: “I believe this will help more technology projects to incorporate and act as responsible businesses.
“Beyond slashing the costs, I also see the need to improve the filing processes and turnaround time in getting a business registered.”
Stressing the need for the Nigerian government to become more active, he said government officials should ensure the announcement is not just a mere public relations strategy.
“This has to be empirical and broadly tested beyond lousy newspaper advert or PR strategies,” he added.
He also advised the government to consider other core factors that could improve company registration and would greatly aid Nigeria’s various tech startups seeking company registration. One such initiative is tax breaks.
“If we also adopt a tax break for small businesses and tech startups like United States does, this will also be key to driving entrepreneurship in our space. We know youth unemployment is a key headache of present Nigeria, any opportunity that allows us reduce the stem of unemployment has to be faced with proactive solutions,” Onigbinde said.