Lagos intends to establish a ₦31 billion fund devoted to nurturing startups and innovation hubs.
Lagos Unveils Ambitious Innovation Agenda with Lagos Innovation Bill
The Lagos State Government has taken a significant step towards bolstering its commitment to research, development, and innovation (RD&I) by proposing the Lagos Innovation Bill. This bill, currently in its draft stage, aims to foster a conducive environment for technological advancement and economic growth in the state.
Under the proposed legislation, a minimum of 1.5% of Lagos' annual budget will be allocated to the RD&I Fund and the development of science, technology, research, and development annually. For the 2025 capital budget, this translates to a commitment of ₦31.07 billion ($20.26 million) towards innovation.
The bill also establishes a Commission to oversee its implementation. The Commission will be chaired by an individual with at least 20 years of experience in the private-sector or tech industry. Notably, the current chairman of the supervisory board of the RD&I Fund is Ifeanyi Anazodo, a seasoned professional in the tech industry.
The Commission will set Lagos' five-year research and development plan, ensuring the state builds capacity in frontier technologies. To achieve this, the bill includes provisions for the development of innovation hubs and tech parks, the financing of research, and the provision of risk capital to businesses.
Moreover, the bill includes tax and fiscal incentives for beneficiaries. Additionally, about 20% of innovation grants are allocated to women and youth-led initiatives, with support for returning founders and researchers from abroad.
Beneficiaries must register on the Lagos Science Research and Innovation Portal to qualify for grants, waivers, low-interest financing, and reimbursement of up to 70% of research and development costs. However, accessing the fund will require strict compliance, with penalties for misuse including fines, imprisonment, or both.
Mismanagement and falsification of research could lead to blacklisting, disqualification, or a full refund. A commercialisation programme is included in the Lagos Innovation Bill to help beneficiaries translate their research into marketable products.
The bill's ambitions extend beyond startups, encompassing technology parks, innovation hubs, research institutions, higher academic institutions, and businesses developing innovative technologies. Procurement preferences for local innovators are also part of the Lagos Innovation Bill.
In 2024, Lagos announced it was developing its version of the Nigeria Startup Act, tailored for tech startups within its borders. The proposed Research and Development innovation (RD&I) fund will be managed by a licensed fund manager with at least 20 years of experience.
The RD&I fund will draw on donations, grants, innovation bonds, royalties, and other revenue sources. As of December 2024, Lagos had disbursed $330,000 through the Lagos State Science Research and Innovation Council (LASRIC) to support over 40 startups.
The Lagos Innovation Bill, if approved, is expected to play a significant role in propelling Lagos into a hub of technological innovation and economic growth in Nigeria.
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