E-Business
Improving the Startup Environment with Nigerian Startup Act

By Lere Ojedokun
On October 19, 2022, the Nigerian technology and innovation space, and in particular the tech-enabled startup ecosystem received a major boost when President Muhammadu Buhari signed the Nigeria Startup Bill (NSB) into law.

With the presidential assent, the Nigeria Startup Act (NSA 2022) came into effect, principal objective of which is to further grow the country’s ICT sector which, according to the Minister of Communications and Digital Economy, Prof. Isa Pantami, contributes 40 per cent to the Gross Domestic Product (GDP) annually, with 18.42 per cent already recorded in 2022 alone.
He added that the new act – a joint initiative by Nigeria’s tech startup ecosystem and the Presidency, was aimed at harnessing the potential of Nigeria’s digital economy through co-created regulations, and to emplace well-laid laws and regulations that work for all stakeholders in the tech ecosystem.
Pantami also said the act provides the legal and strategic framework for innovators to make their contributions to the country, stating that out of the seven unicorns in Africa, five are from Nigeria, and that the market value of each unicorn is worth US$1billion.
In a nutshell, the intention of the Nigerian Startup Act 2022 includes recognition of legally incorporated tech startups 10 years downward, whose activities support the creation and incubation of innovations and tech solutions.
It further seeks to provide an enabling environment for the establishment, development, and operation of startups; provide for the development and growth of technology-related talent; and position Nigeria’s startup ecosystem as the leading digital technology centre in Africa.
To achieve the intended objectives, the act makes provisions for the establishment of a startup seed fund; tax incentives for startup businesses, new employees and angel investors, accelerators, and venture capitalists; training and capacity building support; as well as facilitating smooth working relationships between startups and relevant government agencies.
Startups under the Nigerian Startup Act 2022 are defined as any company in existence for not more than 10 years, with its objectives being the creation, innovation, production, development, or adoption of a unique digital technology innovative product, service, or process.
This definition connotes that the Act will apply to tech-enabled startups, that is, companies like Alerzo, Kuda, Bamboo, etc that leverage innovations and technological advancements to solve operational issues or improve customer experience.
The new act, indeed, is a huge step towards addressing the yearnings of players and stakeholders for a more enabling operating environment. This is more so, because, despite the huge socio-economic potential and benefits that digital innovations, products and services can offer Nigeria’s economic recovery and growth, the space is fraught with certain challenges.
For instance, McKinsey & Company in a report, Harnessing Nigeria’s Fintech Potential (September 2020), stated that Nigeria is home to over 200 fintech standalone companies offering fintech solutions, plus fintech solutions offered by banks and mobile network operators. The report added that the Nigerian fintechs raised more than US$600 million in funding between 2014 and 2019.
Quartz Africa, however, lamented the high failure rate of Nigerian startups. It said 61 per cent startup failure rate was recorded from 2010-2018 due to various factors including poor infrastructure such as roads, inefficient electric power, inconsistent government policies, regulatory bottlenecks, over-saturation of startups in select locations, dearth of talent, high operating cost, funding challenges, etcetera.
It is gratifying also that tech-backed B2C and B2B e-commerce startups like Alerzo (AlerzoShop), TradeDepot, Omnibiz, Njalo etcetera are also among the principal beneficiaries of the new act. As an important driver of the digital economy, they also face similar challenges of policy inconsistency, lack of access to funding, exclusion from official foreign exchange window, high lending rate by commercial banks, high operating cost, poor supporting infrastructure, overlap in regulation by government agencies, multiple taxations and insecurity, amongst others.
The new act offers the much-sought political will towards addressing the challenges of tech startups. It is also an acknowledgement of the significance of tech-enabled startup businesses as enablers of national socio-economic growth which e-commerce platforms are a part of.
Despite the challenges in the emerging B2B e-commerce ecosystem, the resilience of the segment as a significant contributor to the manufacturing and distribution value chain is never in doubt. Over the past years, operators have consistently invested in ICT infrastructure and human capital to impact the entire value chain – manufacturers, distributors and retailers – by enabling Factory-to-Retail distribution for consumer goods companies.
Nigeria’s informal retail market is estimated to worth US$100 billion, yet faces peculiar challenges including limited inventory, lack of access to finance for expansion, unregulated and clustered market, distance to market or supply source and high transportation cost, all of which increase cost of operation.
Alerzo is prominent among the tech-enabled e-commerce platforms that are empowering informal retailers in the sub-urban and rural areas with faster distribution of consumer goods using first-party relationship platforms, enabling manufacturers and top-tier primary suppliers to clear their inventory faster, while it absorbs the burden of last-mile supply and delivery to the retailers. The new Act could enable it to do more when the cost of doing business is low.
During COVID-19 and post-pandemic, Alerzo helped to bridge the demand-supply shortfalls by leveraging its ecosystem of digital solutions and logistics platforms to empower informal retailers to access a wide assortment of consumer products with ease and faster from FMCG companies such as Flour Mills, Unilever, Nestlé, Procter & Gamble, PZ Cussons and Dangote at zero delivery cost to the retailers.
More angel investors, accelerators and venture capitalists partnering with B2B e-commerce platforms like Alerzo and others in critical areas such as logistics and warehousing services would mean more goods will pass through the supply chains faster to the consumers.
Businesses will reduce their operating cost and increase profitability; more jobs will be created, economic wealth will be distributed to more people; quality of life will improve, while the economy will be significantly impacted.
The act, by offering incentives, provides a buffer for startup businesses like Alerzo to achieve stability or withstand macroeconomic headwinds. Incentives like pioneer status for tech businesses aged zero to 10 years in critical industries like technology and agriculture and possible tax holiday, up to between three and five years, are highly commendable.
Also allowing startups to employ entry level talent with no more than three-years of post-graduation experience and offering income tax relief up to five per cent of profit generated, and Personal Income Tax relief of 35 per cent for two years for such employees can help them attract the right talents.
By enabling angel investors, accelerators, and venture capitalists to enjoy tax credits, up to 30 per cent of their investment in a startup, can attract more investors into the segment.
The future of tech startups in Nigeria is bright, no doubt. McKinsey & Company, in the report cited earlier, revealed that Nigeria’s fintech ecosystem attracted US$122 million, representing 25 percent of US$491.6 million total funds raised by African tech startups in 2019 alone, coming second to Kenya which attracted US$149 million.
It noted further that Nigerian startups retained US$1.37 billion of Africa’s US$4 billion funding in 2021, showing that Nigeria has the highest volume of startups in Africa. Quartz Africa further affirmed Nigeria as hosting the most startups in
Thus, Nigeria Startup Act 2022 can be a stimulus to accelerate the growth of Nigeria’s tech startups to an enviable height in the not-too-far foreseeable future.
Ojedokun, a policy analyst and development advocate, contributes this piece from Lagos.
E-Business
82% of Organizations Concerned about AI Risks Even as Adoption Accelerates – Survey Reveals

At its recent Cyber Security Weekend for the Middle East, Turkiye and Africa (META) region Kaspersky shared the results of a global study conducted by its internal research center which surveyed 1,800 IT and cybersecurity decision-makers and specialists from organisations across 18 countries and multiple industries.

The report shows that the pace of AI integration across organisations is rapid, despite associated risks. The company’s experts stressed that while AI adoption delivers clear efficiency gains, it must be accompanied by robust cybersecurity solutions, well-defined internal procedures, and comprehensive employee education programmes.
The report highlights a clear organisational preference for AI-enhanced technology: 68% of respondents said they would recommend a solution with AI features built in, while a mere 5% indicated they would prefer to avoid AI-enabled tools. This overwhelming endorsement underscores how deeply AI has embedded itself as a value driver across the modern enterprise.
AI has become a mainstream productivity tool spanning many business functions. The global survey findings confirm that employees across departments are already relying on AI tools for a wide range of everyday tasks, including: data analysis & visualisation (54%), project management (49%), search for information (47%), department-specific tasks (46%), text generation and editing (41%).
While organisations recognise the tangible benefits AI tools bring – including improved process efficiency and enhanced quality of deliverables – they also see the associated dangers. 82% of respondents voiced concerns about the risks AI poses to their organisation. These concerns are grounded in real-world experience.
Among the 87% of organisations worldwide that faced a cyber incident in the past year, 13% reported that they had experienced threats stemming specifically from AI-related vulnerabilities.
Notably, 74% of respondents believe that these risks can be effectively mitigated through employees’ responsible behaviour — pointing to the critical importance of security awareness and training in the AI era.
“The speed at which organisations are embracing AI is remarkable, but it must be matched with an equally strong commitment to security. We are already seeing a growing range of threats directly tied to AI adoption – whether it’s malware camouflaged as popular AI tools, vulnerabilities introduced through unsecure vibecoding, or leaked access credentials to corporate AI platforms and malicious skills by AI agents.
Managing these risks requires a holistic approach: the right technology, well-defined procedures, and a security-aware workforce,” comments Brandon Muller, senior security consultant for the META region at Kaspersky.
E-Business
How Temu Helped a Madagascan Vanilla Family Business Sell Direct to Consumers Across Europe

Malagasy Vanilla has transformed its decades-old wholesale business by embracing direct-to-consumer sales through Temu, enabling the family-run company to reach customers in 14 European markets while significantly reducing logistics costs.

For years, premium Madagascan vanilla supplier Malagasy Vanilla sold exclusively to restaurants, bakeries and wholesalers because the cost of shipping a single pack to individual customers often equalled the value of the product itself. That changed after the company joined Temu’s Local Seller Program in November 2025.
The Belgian-based business, which sources high-quality vanilla from Madagascar, has leveraged Temu’s logistics network to cut domestic shipping costs by nearly half through a partnership with Belgian postal operator Bnode. The move has enabled the company to enter the retail market for the first time and quadruple its sales within four months.
According to Belinda Rabenandrasana, co-Chief Executive Officer of Malagasy Vanilla, Temu has opened up an entirely new customer segment for the company.
“Temu opened a new avenue for us,” she said. “We were finally able to explore selling to individuals.”
The platform now contributes between five and 10 per cent of the company’s overall revenue.
Expansion into 14 European Markets
Malagasy Vanilla is among businesses participating in Temu’s Local Seller Program, launched in Europe in 2024 to help local merchants expand beyond their domestic markets.
Through partnerships with more than 150 logistics providers across Europe—including Bnode in Belgium, La Poste in France and DHL Group in Germany—Temu offers sellers access to affordable shipping and delivery infrastructure without requiring major investment in logistics.
After successfully establishing direct-to-consumer sales in Belgium, Malagasy Vanilla expanded into 14 European countries, including Germany, France, Spain and Poland.
Rabenandrasana said the logistics support, competitive shipping rates and seller assistance provided by Temu made the expansion possible.
“Without Temu and its partnership with Bnode, it would have been very difficult for a small business like ours to start selling directly to consumers,” she said.
She added that Temu also assists sellers in managing regulatory requirements such as the European Union’s Extended Producer Responsibility (EPR) compliance, making cross-border operations easier for small businesses.
Three Generations of Vanilla Expertise
Malagasy Vanilla traces its roots to three generations of the Rabenandrasana family in Madagascar’s vanilla industry.
Belinda’s grandfather began trading vanilla locally, while her father expanded operations across Madagascar. She launched the company’s international business in 2017, supplying premium Madagascan vanilla to European restaurants, pastry shops and food wholesalers before establishing operations in Belgium in 2023.
The company partners with growers and producer associations in Madagascar, where between 20 and 40 workers oversee the six- to 10-month curing process that transforms green vanilla pods into premium black vanilla.
Operations in Belgium focus on packaging, quality assurance and distribution.
Customer Reviews Drive Growth
Under its Lavani brand, Malagasy Vanilla sells gourmet-grade whole vanilla pods targeted at both professional chefs and home baking enthusiasts.
Rather than relying heavily on paid advertising, the company has benefited from Temu’s product discovery tools and customer reviews, helping the niche brand gain visibility organically.
According to Rabenandrasana, strong customer feedback has played a significant role in increasing traffic and boosting sales.
The brand currently maintains a customer review rating exceeding 99 per cent on the platform.
Future Plans
Looking ahead, Malagasy Vanilla plans to expand its European footprint further by establishing a warehouse in France and increasing sales across the continent.
The company is also developing new products, including vanilla extract and vanilla sugar, while planning to open a physical retail and production facility in Belgium later this year.
In addition, it intends to launch a social-impact initiative aimed at supporting vanilla-growing communities in Madagascar.
Reflecting on the company’s evolution, Rabenandrasana said the business continues to build on her family’s legacy.
“My grandfather worked locally, my father expanded nationally, and now we are building internationally,” she said.
E-Business
FG Must Consider Data Security, Sovereignty in 3MTT Initiative – Stakeholders

Stakeholders in Nigeria’s digital economy have urged the Federal Government to review its partnership with global recruitment platform Hello.cv under the 3 Million Technical Talent (3MTT) programme, citing concerns over data security, digital sovereignty and the country’s “Nigeria First” policy.

3MTT
The concerns follow the Federal Ministry of Communications, Innovation and Digital Economy’s announcement on May 6 of a 10 million-dollar partnership with Hello.cv aimed at increasing the global visibility of Nigerian technology professionals.
Under the initiative, 20,000 selected 3MTT fellows will receive a global professional profile package, including an Artificial Intelligence (AI)-powered job search agent, a professional curriculum vitae (CV) writer and a personal .cv domain, valued at 500 dollars per participant.
While stakeholders acknowledged the programme’s potential to improve global employment opportunities for Nigerian tech talent, they expressed concerns about the implications of hosting participants’ digital identities and data on a foreign domain.
Chief Executive Officer of Cyberchain and Global Digital Economy Strategist, Engr. Jude Ozinegbe, said the arrangement raised important questions about data ownership and jurisdiction.
According to him, registering domains under an entity outside Nigeria gives that entity a degree of control over activities associated with the domain.
“When you register your domain under a different entity outside your jurisdiction, that entity will have access to whatever is happening within that domain.
“In the long run, the Nigeria Data Protection Commission (NDPC) may have to examine the agreement and assess the security implications of such domain ownership,” he said.
Ozinegbe urged the NDPC to review the security protocols employed by Hello.cv to ensure compliance with Nigeria’s data protection regulations.
Also speaking, Ugonma Egwuatu of ECAM Global Services, an information and communications technology and data protection firm, said the security of data belonging to 20,000 fellows should be of significant interest to regulators.
She noted that while the ministry had the authority to determine how the programme was implemented, there was a need for greater transparency regarding the handling of participants’ personal information.
“The NDPC requires its registered Data Protection Compliance Organisations (DPCOs) to subscribe to the .ng domain.
“If a government ministry permits trainees to operate on a foreign domain, then the commission should examine the arrangement because we are dealing with the data of 20,000 Nigerians,” she said.
Egwuatu also called for clarity on how data generated through the platform would be processed, stored and protected.
“There should be explanations regarding the backend. What are they doing with the data of people who visit these sites? Why use a foreign domain instead of the .ng domain? These are legitimate questions that deserve answers,” she said.
She added that government should ensure appropriate third-party agreements and safeguards were in place before implementing such initiatives.
On his part, Chief Executive Officer of DNS Africa, Dr. Adebunmi Adeola Akinbo, said the objectives of the programme could still have been achieved while leveraging Nigeria’s country code top-level domain.
According to him, Hello.cv could have registered a hello.cv.ng or hellocv.ng domain in collaboration with the Nigeria Internet Registration Association (NiRA).
“The .ng domain can conveniently accommodate such a platform. If Hello.cv intends to onboard millions of Nigerians, it can work with NiRA to create a local domain structure.
“That way, the investment remains within Nigeria, strengthens the digital economy and supports local internet infrastructure,” he said.
Akinbo argued that excluding the .ng domain from the initiative undermined Nigeria’s digital identity and sovereignty.
“As good as the programme may sound, leaving the .ng domain outside this engagement and taking Nigerian data outside the country’s digital jurisdiction is not the best approach,” he said.
Also commenting, Founder and Chief Executive Officer of Precise Financial Systems Ltd., Yele Okeremi, stressed the importance of ensuring that investments in Nigeria’s digital economy create long-term domestic value.
According to him, building a sustainable technology ecosystem requires more than developing skilled professionals.
“Investment, particularly in technology and the knowledge economy, is not just about having smart people.
“It is also about who owns the infrastructure and who ultimately benefits from the value created. Nigeria must ensure it retains as much of that value as possible,” he said.
Similarly, Chief Executive Officer of the Internet Exchange Point of Nigeria (IXPN), Muhammed Rudman, described the use of foreign domains for a government-sponsored initiative as inconsistent with efforts to promote Nigeria’s digital economy.
“I don’t know where this idea came from, but it is unpatriotic for Nigerian companies funded by Nigerian resources to adopt .cv domains instead of .ng.
“Global companies such as Google register country-specific domains like google.ng when operating locally. Registering 20,000 additional .ng domains would improve Nigeria’s online visibility and strengthen the local internet ecosystem,” he said.
Rudman urged the Federal Government to support indigenous digital infrastructure by encouraging the use of the .ng domain.
The 3 Million Technical Talent (3MTT) programme is a flagship initiative of the Federal Ministry of Communications, Innovation and Digital Economy aimed at equipping Nigerians with globally relevant digital skills.
The programme provides free training in areas including software development, artificial intelligence, cloud computing, cybersecurity, data analytics, machine learning, animation, DevOps and user interface/user experience design through a hybrid learning model.
Stakeholders maintained that while the partnership with Hello.cv could expand international employment opportunities for Nigerian technology professionals, greater attention should be paid to safeguarding the country’s digital assets, promoting local internet infrastructure and ensuring compliance with Nigeria’s data protection framework.
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