Nigeria has an ambitious economic revitalization plan to implement measures that will boost her tech ecosystem. The plans are laid out in the economic sustainability plan. The government plans to create over a million tech-based jobs and provide support to startups that are critically affected by covid19.
So far, several SMEs and startups are suffering under the pandemic. Others are in dire need of capital infusion or face a total shutdown. As a result, many workers have had to endure unpaid wages, job losses, and business closures.
According to the UN, as many as 13 million people are at risk of unemployment. The survey by the National Bureau of Statistics (NBS) further reveals a 42% reported case of job losses from a research sample of 1950 respondents. The Demographic and Health Surveys Program (DHS) gives the average household number in Nigeria to be 5.
With oil revenues at a record low and a steep uptick in unemployment, the federal government has launched the Economic Sustainability Committee to come up with a policy framework that cushions the effects of the pandemic.
Activation of the Finance Act
The section on Startups and MSMEs contained in the sustainability plan will be activated. Small startups recording revenues of less than $64,516 will be exempted from paying income tax. The challenge faced is the composition of MSMEs who have mainly comprise those in the informal sector (99.8%).