Section 47 Nigeria Startup Act

Section 47 Nigeria Startup Act 2022 is about Interpretation. It is under Part XI (Miscellaneous Provisions) of the Act.

In this Act —
“accelerator” means a fixed-term, cohort-based programme which provides a startup with mentorship and educational assistance to aid its growth ;
“angel investor” means a high net worth individual or company which provides funding to an early-stage startup, typically in exchange for equity in the startup company ;
“CBN” means the Central Bank of Nigeria ;

“Chairman” means the Chairman of the National Council for Digital Innovation and Entrepreneurship ;
“Commission” means the Corporate Affairs Commission ;
“company” means a limited liability company registered with the Corporate Affairs Commission ;
“Council” means the National Council for Digital Innovation and Entrepreneurship ;
“Council agent” means the agent appointed by the Council under section 8 of this Act ;

“crowdfunding” means the use of small amounts of money, obtained from a large number of individuals or organisations, to fund a project, or business, through an online based web-platform ;
“crowdfunding intermediary” means an entity organised and registered as a corporation to facilitate transactions involving the offer or sale of securities or investment instruments through a crowdfunding portal ;
“early-stage startup” means a startup which is focused on product development, building a customer base, and establishing a strong cash flow ;

“early-stage finance” means financing of the first phase of growth of a startup where the funds are used to buy inventory and to sustain the gap existing between cash flow and the money needed ;
“expeditious” means speed and efficiency ;
“Export Development Fund” means the fund managed by the Nigerian Export Promotion Council ;
“Federal Government” means the Federal Government of Nigeria ;

“Fintech startups” means registered startups that operate as financial technology companies and obtain their operational licences from the CBN and SEC ;
“Fund” means the Startup Investment Seed Fund ;
‘Fund Manager” means the Nigeria Sovereign Investment Authority ;
“incubator” means a company, partnership, non-governmental organisation or limited liability partnership, whose principal object is to support the establishment and development of a startup, promotion of innovation, and related activities through the offer of dedicated physical spaces and services ;
“Industrial Training Fund” means the fund managed by the Industrial Training Fund ;

“intellectual property” means the result of creativity protectable by copyright, trademark, trade secrets, Industrial designs and patent registrations in Nigeria ;
“innovation” means the implementation of technology driven ideas which leads to the creation or development of a new product, process, or service with the aim of improving efficiency, effectiveness, or
competitive advantage ;
“labelled startup” means a startup labelled under this Act and issued a digital certificate by the Coordinator ;

“National Information Technology Development Fund” means the Fund set up under the National Information Technology Development Secretariat ;
“NOTAP” means the National Office for Technology Acquisition and Promotion or other such office that may be set up in the future to replace the National Office for Technology Acquisition and Promotion ;
“Nigerian Exchange Limited” means the Nigerian Stock Exchange regulated by the SEC ;
“pre-incubation” means the phase of a startup aimed at validating a project idea, company planning and creation, developing possible business by analysing technical and economic viability and entrepreneur profile ;

“research and development” means intensive study directed towards greater knowledge or understanding of the subject studied, and includes activities undertaken to innovate and introduce a new product and service ;
“regulatory incubation programme” means the incubation programme created by the SEC for financial technology (fintech) companies operating or seeking to operate in Nigeria ;
“Sandbox” means the regulatory software testing environments created by the CBN, the SEC or any other regulator that may set up a sandbox programme ;

“scaleup” means a company which has already validated its product within the marketplace and has proven that its business model and economics are sustainable ;
“Scheme” means the Credit Guarantee Scheme created under section 28 of this Act ;
“Secretariat” means the Secretariat of the Council established under section 9 of this Act ;
“SEC” means Securities and Exchange Commission ;

“Startup Portal” means the startup support and engagement portal created under section 10 of this Act ;
“startup” means a 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 ;

“startup ecosystem” means environment comprising entrepreneurs, startups, capital providers, Federal Government and other stakeholders that interact to aid a startup ; and
“venture capitalist” means a person or company that provides capital to a Startup that is exhibiting high growth potential in exchange for equity.