Section 28 Nigeria Startup Act

Section 28 Nigeria Startup Act 2022 is about Credit Guarantee Scheme. It is under Part VII (Tax and Fiscal Incentives) of the Act.

1) The Secretariat shall establish a Credit Guarantee Scheme (in this Act referred to as “the Scheme”) for the development and growth of a labelled startup under this Act.

(2) The Scheme established under subsection (1) shall have the following objectives —
(a) the provision of accessible financial support to a labelled startup ;
(b) creation of a framework for credit guarantee for a labelled startup ;
(c) provision of financial and credit information to startups ; and
(d) provision of financial management capacity building programmes to startups.

(3) Where a Scheme is established under subsection (1), the Secretariat shall ensure that there is —
(a) a strategy and operational goals which align with the objectives under subsection (2) ;
(b) criteria for eligibility and qualification for recipients of funding under the Scheme ;
(c) criteria for the monitoring and evaluation of projects undertaken under the Scheme and the efficiency of the operations of the Scheme ;
(d) mechanism for transparency, accountability and reporting on the activities of the Scheme ; and
(e) chattels, registered intellectual property, assignment of shares or any other instrument identified in the collateral registry as sufficient collateral.