CRYPTO MARKET

Bitcoin	$16,831	– 0.14%
Ether	$1,222	+ 0.67%
BNB	$246	– 0.41%
FTX Token	$0.97	+ 0.41%
Name of the coin Price of the coin 24-hour percentage change		Source: CoinMarketCap

* Data as of 05:43 AM WAT, December 23 , 2022.

NIGERIA INVITES STAKEHOLDERS TO THE PUBLIC HEARING OF NEW NITDA BILL

Nigeria’s National Assembly is inviting the public to a one-day public hearing on the draft law for the country’s ICT regulator, the National Information Technology Development Agency (NITDA). The event is happening today, December 23. The bill proposes replacing the National Information Technology Development Act No. 28 of 2000 with the National Information Technology Development Agency Act. 

What does the new bill entail?

The bill has stirred some controversy since it became public around July this year. It seems to contradict and disregard the provisions of other bills, like the Nigerian Startup Act.

How so?

For example, the Nigerian Startup Act provides tax breaks for new startups, but the NITDA Bill seems bent on taxing startups. Aside from licensing fees, the bill demands one percent profit-before-tax levies for companies with revenues higher than ₦100 million ($243,831). This is in addition to already existing taxes, including a 20% tax to the Federal Inland Revenue Service for companies with over ₦25 million in turnover and an education tax worth 2.5% of their assessable profit per year for all registered startups.

Even worse than these demands are the punishments for not meeting them. An “Offences and Penalties” section lists out offences and penalties such as a ₦30 million fine and two years’ imprisonment for operating without licences. Startups and companies that also fail to pay the annual one percent levy are fined two percent of the unpaid levy. Where the company refuses to pay the levy within two months after the notice, the company will be liable to pay 0.5% of the payable amount per day. 

Can concerned Nigerians do anything about it?

The public hearings are the early phases of a lengthy process, so there is still time to change things.

The first step would be to attend the National Assembly’s public hearing and express your concerns. Additionally, techpreneurs can produce a position paper and submit it to the Ministry of Justice, or they can express their concerns in a memorandum to the National Assembly at the Committee Stage, facilitate recurring payments for bills like utility bills, subscriptions, loan repayments, etc.

CBN REVISES ITS CASH WITHDRAWAL POLICY

On December 6, 2022, the Central Bank of Nigeria (CBN) delivered a shocker to Nigerians with its latest monetary policy.

An order from the apex bank required banks to impose weekly cash withdrawal limits at bank branches and ATMs. Under the new rules, individuals can only access ₦20,000 ($45) daily, effectively ₦100,000 ($225) in cash weekly. For businesses, the limit was ₦500,000 ($1125) per week.

Two weeks later, the bank has revised this position and increased its withdrawal limits to ₦500,000 ($676) for individuals and ₦10 million ($22,423) for organisations.

The new directive will go into effect on January 9, 2023.

Good news or bad news?

Depends on who’s asking.

The initial announcement was met with both outcry and commendation from the public. While some complained the stiff limits would significantly affect liquidity in Nigeria’s pro-cash environment, others hailed the initiative as one that could support the cashless initiative.

Earlier this month, Nigeria’s House of Representatives summoned the CBN governor, Godwin Emefiele, to explain the impact and significance of the withdrawal limit. It is unclear if this revised policy is the result of the meeting with Nigerian lawmakers, but the increased limits sure come as good news.

TC INSIGHTS: GROWTH HANDBOOK

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In this handbook, we share some top tips and best practices for startups looking to scale their growth efforts and effectively reach their audience.

To get a sneak peek into the handbook, click here.

You can also pre-register here to get paid access once it goes live.

IN OTHER NEWS FROM TECHCABAL

How Fadilah Tchoumba is helping African SMEs and startups build investable companies.

Gifts that your tech-savvy loved ones will appreciate this holiday.

OPPORTUNITIES

• African startups are invited to apply for the Making More Health Business Accelerator, a structured business growth programme targeted at social entrepreneurs with innovative solutions in the health sector. Apply by January 13.

• The GROW Impact Accelerator is now accepting applications from agtech startups offering solutions to the problems facing the processing, packaging and transportation of food. Apply by January 30.

• pplications for a $150,000 grant from the Grand Challenges Canada Stars in Global Health Programme 2023 are now open. Submit proposals that address the health impact of climate change in low and middle-class countries. Apply by January 16.

• Applications are open for the Amazon Web Service Healthcare Accelerator 2023. Apply by January 8th.

• Applications are open for the Fuelarts x Tezos Accelerator 2023, an accelerator programme for Art+Tech startups. Apply by December 31st.

What else is happening in tech?

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